Commitment to Pay Subsidy for Private Sector Student Loans Not to Be Made Before 31ST May 1997

Part of Orders of the Day — Education (Student Loans) Bill – in the House of Commons at 7:14 pm on 17 January 1996.

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Photo of Stephen Byers Stephen Byers , Wallsend 7:14, 17 January 1996

I beg to move, That the clause be read a Second time.

The need for the new clause arises because of the difficulties that the Government experienced in Committee, and it comes on top of a difficult couple of months for the Government on education matters. They have had to backtrack from their fast-track process of grant-maintained status for voluntary-aided schools. They have had difficulties with their nursery voucher scheme and with the four pilot authorities which have struggled to find sufficient places. On top of all that, the Minister had to announce on the second day of the Committee that the Government were unable to proceed according to their original timetable—which would have seen the Bill's proposals implemented by autumn this year—and would have to delay the implementation of the student loans measure by 12 months, so that the Bill's proposals will not start to be effective until autumn 1997.

Most hon. Members are aware that the proposals to privatise the student loans system appeared in the Queen's Speech very late in the day, and the measure was deemed necessary to appease those right-wing members of the parliamentary Conservative party who were desperate to have a privatisation measure somewhere in the Queen's Speech.