HC Deb 06 March 2003 vol 400 cc1149-52W
Vera Baird

To ask the Secretary of State for Education and Skills how many people obtained career development loans in Redcar and Cleveland in each of the last five years, broken down by(a) age and (b) course studied. [101223]

Margaret Hodge

The following tables show the number of people in the Redcar and Cleveland area who have been awarded a Career Development Loan (CDL), for every year since 1998. The tables break down the awards into age groups, and show the type of learning that the CDL was intended to help fund. Information is not collected on the actual course studied.

Number of CDLs by course type—2002
Age range
Under 20 20–29 30–39 40–49 Over 49 Total
Computer Skills 1 8 10 4 2 25
Health, Training, Welfare — 2 1 — 1 4
management — — — 1 — 1
Driving Occupations — 1 2 — — 3
Art and Drama — 2 — — — 2
Environment Studies — 1 — — — 1
Engineering — — — 1 — 1
Other — 1 1 2 — 4
Total 1 15 14 8 3 41

Note

These tables cover postcodes starting TS5, TS6 and TS10–14 inclusive, as confirmed with the borough of Redcar and Cleveland.

Vera Baird

To ask the Secretary of State for Education and Skills what action is taken to publicise the availability of career development loans. [101224]

Margaret Hodge

Since they were launched in 1988 Career Development Loans (CDLs) have helped over 180,000 people fund vocational learning to improve their career prospects. CDLs are publicised via the CDL website on the Department's website, by learning providers, and participating banks. Information is also available via learndirect, Learning and Skills Councils, Information Advice and Guidance partnerships and various publications such as the leaflet "money to learn", the BBC's Career Essentials booklet and CDL advertising posters sent to learning providers and Jobcentres. The most recent national press publicity campaign was carried out in 1998. As CDLs are being considered as part of the review of funding of adult learning, there are no plans to further publicise the programme at present.

Vera Baird

To ask the Secretary of State for Education and Skills how many people in the borough of Redcar and Cleveland(a) applied for and (b) obtained career development loans in each of the last five years; and what the rate of default is on repayment in each of the last three years. [101225]

Margaret Hodge

The exact number of Career Development Loan (CDL) applications by people in the borough of Redcar and Cleveland is not known. The rate of successful applications varies between the banks, but the overall success rate is around 75 per cent. of applications received. The number of successful applications in each year since 1998 is as follows:

Number
1998 24
1999 25
2000 52
2001 42
2002 41

Note

This table covers postcodes starting TS5, TS6 and TS10–14 inclusive, as confirmed with the borough of Redcar and Cleveland

The net default rate on CDLs taken out in the borough of Redcar and Cleveland is:

2000–4.0 per cent

2001–6.23 per cent.

2002—no loans have defaulted to date

The national underlying net default rate for CDLs since the programme began is 10.13 per cent. This compares to the 15 per cent. maximum operating default limit agreed with the banks to cover the higher level of risk they take in making these particular loans.

Vera Baird

To ask the Secretary of State for Education and Skills what guidance the Department gives for(a) rates of repayment and (b) income levels for the commencement of the repayment of career development loans. [101226]

Margaret Hodge

Career Development Loans (CDLs) are commercial bank loans and the rates of repayment are decided by the participating banks. The banks have an agreement with the Department that the interest rate they charge will normally be no greater than the interest rate applicable to their normal personal loans, at the time that the CDL was granted.

CDLs are not income-contingent therefore the Department does not give any guidance to the participating banks on income levels for starting repayment. However, an individual may be able to postpone the start of their repayments for up to 17 months if, when they are due to start repaying they are: unemployed and claiming related benefits; employed and receiving certain benefits (such as Income Support); taking part in a Government Training programme and in receipt of a training Allowance; or still attending the course for longer than expected due to ill health or other special circumstances.