HC Deb 30 January 1987 vol 109 cc403-4W
Mr. Andrew F. Bennett

asked the Secretary of State for Education and Science if he will make a statement on student grants.

Mr. Walden

I refer the hon. Member to the reply given today by my right hon. Friend to the hon. Member for Cambridge (Mr. Rhodes James).

Mr. Rhodes James

asked the Secretary of State for Education and Science if he will make a statement about levels of students' grants and parental contributions for 1987–88.

Mr. Kenneth Baker

Subject to Parliament's approval of the necessary regulations the main rates of student grant will be increased by 3.75 per cent., in line with the forecast rise in the retail price index. The new rates for England and Wales will be as follows (rates for 1986–87 are shown in brackets):

Undergraduate Postgraduate
£ £
Hall or lodgings
(i) London 2,330 (2,246) 3,492 (3,366)
(ii) Elsewhere 1,972 (1,901) 2,859 (2,756)
Parental home 1,567(1,510) 2,075 (2,000)

The threshold for parental contribution, and the transitional scale points, will be raised on average by about 6.75 per cent. Parents earning a residual income of less than £9,300 will no longer be assessed for a contribution. The minimum parental contribution will be raised from £20 to £40, and the maximum for parents with more than one child in receipt of grant, from £4,300 to £4,600. The full scale is as follows:

Parental contribution scale 1987–88
Residual income Contribution
£ £
9,300 40
9,400 54
9,500 68
10,000 140
11,000 282
11,800 397
11,900 417
12,000 437
13,000 637
14,000 837
15,000 1,037
16,000 1,237
17,000 1,437
17,300 1,497
17,400 1,522
17,500 1,547
18,000 1,672
Residual income Contribution
£ £
19,000 1,922
20,000 2,172
21,000 2,422
22,000 2,672
23,000 2,922
24,000 3,172
25,000 3,422
26,000 3,672
27,000 3,922
28,000 4,172
29,000 4,422
29,712 14,600
1 Maximun.

Notes:

  1. 1. For 1987–88 the rate of contribution is assessed at £1 in £7 for residual incomes from £9,300 to £11,800; then £1 in £5 to £17,300; then £1 in £4 in £4 thereafter. (In 1986–87 the rate of contribution was assessed at £1 in £7 from £8,700 to £11,100; then £1 in £5 to £16,200; then £1 in £4 thereafter.
  2. 2. The contribution payable may be less then the amounts shown on the scale, particularly at its top end. This will depend on the amount of grant against which the contribution has to be set and whether any of the assessed contribution is offset by allowance for other dependent children.