§ The Minister for Lifelong Learning, Further and Higher Education (Alan Johnson)The House will know that following the publication ofThe Future of Higher Education White Paper, my right hon. Friend the Secretary of State for Education and Skills announced that we would be reviewing the income threshold below which a student would be eligible to the new Higher Education Grant.
I am pleased to be able to inform the House that the upper income threshold for receiving the full £1,000 grant will be £15,200. Those with incomes of between £15,201 and £21,185 will get a partial grant through a taper scheme. Based on the current student cohort we estimate about 30 per cent. of English and Welsh students will benefit from the full grant when it is introduced in the 2004–05 academic year. Approximately a further 10 per cent. of students should benefit from a partial grant.
I can also provide details of the new package of support for part-time HE students.
Eligible students will be entitled to a fee grant, capped at the equivalent of 50 per cent. of the full-time fee grant rate: in 2004–05 we estimate this will be £575. They will also be entitled to a grant of £250 for course costs.
45WSBoth grants will be available to those on low incomes who are studying at least the equivalent of 50 per cent. of a full-time course. Entitlement will be via a simple means test. Students who are on certain benefits would automatically qualify for full support.
In 2004–05 the income threshold will be set at £14,600. Those with incomes of between £14,600 and £21,487 will get partial support through a taper scheme.
Students will be entitled to support for a maximum of eight years depending on course length, rather than six years as is currently the case with loans for part-time study.