HC Deb 26 February 2001 vol 363 cc363-4W
Mr. Cotter

To ask the Secretary of State for Education and Employment what estimate he has made of the percentage of higher education students(a) in England and (b) from North Somerset who discontinued their studies citing financial hardship/debt as the main reason in each of the past five years. [149902]

Mr. Wicks

The Department does not have data on the reasons given by higher education students who discontinue their studies. The non-completion rate in the UK has remained broadly steady at 17–18 per cent. since 1991–92.

Mr. Cotter

To ask the Secretary of State for Education and Employment how much money the Government estimate they have saved by abolishing the maintenance grant and introducing tuition fee contributions in higher education; and if he will make a statement. [149924]

Mr. Wicks

We estimate that continuing with the previous Government's student support policies for undergraduates normally resident in England and Wales, rather than replacing them with our new ones, would have led to an additional cost to the Government of £1.5 billion over the three years 1998–99 to 2000–01 on a resource basis (this is the full economic cost taking account of loan repayments in future years). The extra resources thus available through our policies, which share the cost of higher education more fairly between students, their families and taxpayers, have enabled us to invest substantially in higher education. Over the period 1998–99 to 2003–04, the increase in resources available to the HE sector will be 18 per cent. in real terms.

Mr. Hilary Bean

To ask the Secretary of State for Education and Employment what estimate he has made of the capital value of the endowment that would be required to enable higher education institutions to generate an income sufficient to equal the total amount of public funding currently received on an annual basis. [150105]

Mr. Blunkett

The value of the required endowment is uncertain. Assuming a gross return of 6–7 per cent., of which some 2.5 per cent. points is used to maintain the real value of the capital, an endowment of over £80 billion is likely to be required in England to meet the costs of teaching currently funded through the Higher Education Funding Council for England. Including the costs of research funded through the Higher Education Funding Council for England, an endowment of over £110 billion is likely to be required.