HC Deb 16 December 1988 vol 143 cc782-4W
Sir Hector Monro

To ask the Secretary of State for Scotland if he will make a statement about the levels of students' allowances and parental contributions for session 1989–90.

Mr. Michael Forsyth

I propose to increase the main rates of allowances by 5 per cent. in the 1989–90 academic year, as previously indicated. In addition, I propose to increase the differential in the rate paid to students studying in London. The new rate for Scottish students will be as follows (rates for 1988–89 are shown in brackets):

£ £
Student in the parental home 1,575 (1,500)
Student living away from home
— outside London 2,090 (1,990)
— in London 2,585 (2,365)

Students in receipt of maintenance allowances will be eligible for reimbursement of travelling expenses in excess of the .55 included in the main rates.

The threshold for parental contributions, and the points on the contribution scales at which the rate of contribution changes will be uprated to reflect the movement of earnings. Parents whose residual income is below .10,600 will not be assessed for a contribution. The minimum contribution will be increased from £50 to £60 for parents whose contribution is assessed on scale 1 and from £37 to £45 for those assessed on scale 2. The maximum contribution, which applies to parents with more than one award-holding child, will increase from £4,900 to £5,300.

The full contribution scales for session 1989–90 are as follows:

Residual income Contribution scale
Scale 1 Scale 2
£ £ £
10,000 0 0
10,600 60 45
11,000 117 88
12,000 260 195
13,000 402 302
13,500 474 356
14,000 574 431
15,000 774 581
16,000 974 731
17,000 1,174 881
18,000 1,374 1,031
19,000 1,574 1,181
19,800 1,734 1,301
20,000 1,784 1,338
21,000 2,034 1,526
22,000 2,284 1,713
23,000 2,534 1,901
24,000 2,784 2,088
25,000 3,034 2,276
26,000 3,284 2,463
27,000 3,534 2,651
28,000 3,784 2,838
29,000 4,034 3,026
30,000 4,284 3,213
31,000 4,534 3,401
32,000 4,784 3,588
33,000 5,034 3,776
34,000 5,284 3,963
34,064 5,300 3,975
35,000 5,300 4,151
36,000 5,300 4,338
37,000 5,300 4,526
38,000 5,300 4,713
39,000 5,300 4,901
40,000 5,300 5,088
41,000 5,300 5,276
41,130 5,300 5,300

Notes: (1) The second parental contribution scale was introduced following the announcement on 15 March 1988 that tax relief on new non-charitable deeds of covenant would cease; it applies primarily to students who first entered higher education in session 1988–89 or later. The contributions assessed on scale 2 are 25 per cent. less than those on scale 1. (2) Contributions will rise with residual income, as follows:

Income Scale 1 Scale 2
From £10,600 to £13,500 By £1 in £7 By £1 in £9.33
From £13,501 to £19,800 By £1 in £5 By £1 in £6.67
From £19,801 By £1 in £4 By £1 in £5.33
(3) The contribution payable may be less than the amount shown in the relevant table, particularly at the top of the scale where the contribution is in respect of one award holder only. It will depend on the level of grant against which the contribution is to be set and whether or not any of the assessed contribution is itself offset by allowances for other dependent children.

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