Orders of the Day — Student Hardship

Part of the debate – in the House of Commons at 10:45 pm on 9 July 1992.

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Photo of Mr Nigel Forman Mr Nigel Forman , Carshalton and Wallington 10:45, 9 July 1992

It was right to do so last year because it was at an early stage in the access fund arrangements. We believe that it is now right to continue on a regular basis and not to have that arrangement for the coming year.

I should return to the main thrust of my remarks. There are some widespread misconceptions about financial support for students, some of which have been mentioned in the debate. For the benefit of the House, I shall set out five key facts about the situation of students.

First, we have increased students' resources substantially in the past two years. Grants and loans form the central elements of our support package. The full-year loan, together with the grant, now gives students over 30 per cent. more than the grant two years ago. This autumn, we shall uprate average student support from grant and loan by a further 4·5 per cent., thereby maintaining its value in real terms. As a result, full-year support this autumn will be nearly 40 per cent. higher than the grant alone in 1989–90. That represents a substantial real-terms increase. It has been achieved at a time when some members of society have been much less fortunate financially. Students should recognise that. In other words, a considerable number of the people who contribute to student support, through the tax system, are less well off than the students themselves, and one needs to consider that.

In addition, it is often forgotten that we are continuing to uprate the supplementary allowances that are payable with the grant. This autumn, we shall increase them by 4·5 per cent. I think that the hon. Gentleman knows from his experience of such matters that they go to, among others, mature students, students with dependants, disabled students and those studying at their colleges during the vacation. They provide an important additional resource for many students with additional needs, and that is a good example of the targeting in which the Government believe.