Clause 2
Sale of Student Loans Bill
4:45 pm
Bill Rammell (Minister of State (Lifelong Learning, Further and Higher Education), Department for Innovation, Universities and Skills; Harlow, Labour)
In response to the hon. Gentleman’s question about the flexibility in sales contracts and the notes’ reference to HMRC and the SLC, it will be enforced through the contract, and we do not believe that it needs to be explicit in the Bill. In response to the hon. Lady’s question about the transference of risk if the repayment threshold is lowered, it could be described as a one-way process. The measure is about the transference of risk. It is fairly unlikely, whatever Government are in power—although it cannot be ruled out—that the threshold will be reduced. The process is about encouraging and asking the private sector to take on longer-term risk, and protections must be in place for that to happen.
To return to the question of why HMRC and the SLC are not included in the Bill in this regard, it is possible that student loan repayment systems might change. The legislation is enabling—it is about a longer-term programme, which is why it is important to include such measures in contracts and not in the Bill.