HC Deb 16 December 1988 vol 143 cc757-8W
Mr. Mans

To ask the Secretary of State for Education and Science if he will publish the rates of student grants and parental contributions for 1989–90.

Mr. Jackson

Subject to Parliament's approval of the necessary regulations, the main rates of grant will be increased in the 1989–90 academic year by 5 per cent. for students studying outside London and students who study from the parental home. For those studying in London, the main rate of grant will be increased by 9.3 per cent. in recognition of their higher living costs. In England and Wales the new rates will be as follows (rates for 1988–89 are shown in brackets):

undergraduate (£) postgraduate (£)
Halls or lodgings
(i) London 2,650 (2,425) 3,970 (3,630)
(ii) Elsewhere 2,155 (2,050) 3,125 (2,975)
Parental home 1,710 (1,630) 2,270 (2,160)

The threshold for parental contributions, and the points on the contribution scale 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 full parental contribution scales for 1989–90 are as follows:

Residual income Contribution
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
Residual income Contribution
Scale 1 Scale 2
£ £ £
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. (1) The second scale of parental contribution was introduced following the announcement on 15 March 1988 that tax relief on new non-charitable covenants would cease. Contributions assessed on scale 2 are 25 per cent. less than those assessed on scale 1.
  2. (2) For 1989–90 the level of contribution will be assessed as follows:

Residual income Scale 1 Scale 2
From £10,600 to £13,500 £1 in £7 £1 in £9.3
From £13,501 to £19,800 £1 in £5 £1 in £6.6
From £19,801 £1 in £4 £1 in £5.3

(3) The maximum contribution, which applies to parents with more than one child holding an award, will rise from £4,900 to £5,300. The minimum contribution will be increased from £50 to £60 for parents whose student children began their courses before the 1988–89 academic year (and whose grant is assessed on scale 1) and from £37 to £45 where students first entered higher education in 1988–89 or later (and whose grant is assessed accordingly to scale 2).

(4) The contribution payable may be less than the amounts shown on the scale, particularly at its top end and where the contribution is in respect of one award-holder only. 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 allowances for other dependent children.