Oral Answers to Questions

Debate between Lord Willetts and Nic Dakin

Thursday 8th November 2012 Commons Chamber

[Mr Willetts]

I congratulate that company on its performance. UK Trade & Investment is running export week in the next week, with more than 100 events throughout the UK, which is a great opportunity for businesses to get further advice about exporting. The automotive sector, of which the company in my hon. Friend’s constituency is an example, is now running its first balance of payments surplus since 1975.

[Nic Dakin (Scunthorpe) (Lab)]

4. What estimate he has made of the proportion of loans for students starting courses in 2012 with fees of £9,000 a year which will not be fully repaid.

[The Minister for Universities and Science (Mr David Willetts)]

We estimate that around half of all borrowers will have some part of their loan written off, as repayments are contingent on their future income. Our reforms are more progressive than the previous system, because people start to repay only once they are earning over £21,000. The new system helps reduce the deficit and is affordable and sustainable for the Government, while offering protection to those who may not go on to high paid employment.

[Nic Dakin]

I thank the Minister for that response but, despite what he says, some estimates put the cost of the Government’s higher education funding policy at £1 billion more than anticipated, completely wiping out any expected savings. How will he plug that gap?

[Mr Willetts]

There is no such gap. That report was an eccentric interpretation of the evidence. Our figures have been checked by the independent Office for Budget Responsibility, and the independent Institute for Fiscal Studies has produced its own estimates and reached conclusions that are very similar to ours.

Higher Education White Paper

Debate between Lord Willetts and Nic Dakin

Tuesday 28th June 2011 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

Will the Secretary of State guarantee that these proposals do not allow charitable private schools to buy places at university?

[Mr Willetts]

That is not the purpose of these reforms.

Higher Education Funding

Debate between Lord Willetts and Nic Dakin

Wednesday 3rd November 2010 Commons Chamber

[Mr Willetts]

The hon. Gentleman makes a very important point. These are proposals for the future, which come in for 2012. They are not retrospective changes, and for current graduates the existing regime will not be changed. This is only for the future from 2012 onwards. I am grateful for this opportunity to make that clear.

[Nic Dakin (Scunthorpe) (Lab)]

My question rather follows on from that point. Young people who are in their final year of a level 3 course—say, doing A-levels—might choose to take a gap year next year and therefore apply to UCAS through deferred entry for a 2012 start. Will they be affected by these changes, or will they go to university under the current rules?

[Mr Willetts]

All students going to university in 2012 will do so under the regime that I have proposed to the House. Some young people—this is a very important practical point—may already have applied for deferred entry as part of not going to university in 2011-12. Admissions procedures are the responsibility of individual universities, but we hope that universities and UCAS, working together, will open a window to enable those young people, if they wish, to have the opportunity of going to university in 2011.