Higher Education and Student Finance

Andrew Percy Excerpts

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

As I think I said earlier, the roads to Westminster are covered with the skid marks of different political parties changing direction on this issue, not least those on the Opposition Benches. I would say this at the present stage: the two parties in the coalition are now very much agreed on the way forward. When we look opposite, we see two fundamentally different approaches to higher education—the existing system favoured by the shadow Chancellor, and a new system of graduate taxes favoured by their leader.

[Andrew Percy (Brigg and Goole) (Con)]

We are all agreed on the need to ensure that the very best people go into our public services where perhaps salaries are somewhat lower. With those graduates now potentially facing largely inflated and increased debts, what assurances can we have that the very best graduates will be supported in going into our public services under these proposals?

[Vince Cable]

Anybody going into relatively low-paid employment, whether in a vocational approach to public service or in other ways, will be protected both by the £21,000 threshold and the system of variable interest rates. Many, many people in low-paid occupations will not be required to pay off any accumulated debt. It will be written off at the end of the period as a result of the progressive element built into the proposals.