Further Education Loans

George Eustice Excerpts

Tuesday 17th July 2012 Westminster Hall

[Mr Hayes]

I am almost as excited about that as my hon. Friend. I will certainly come to it, because it is wonderful news. I have been asked to give more detail and I will in the time available. Let me just finish my point about the access-to-HE measures. They mean that anyone who goes on to HE will see their access loan written off. That is very important, as that route disproportionately contains people with poor levels of prior attainment; after all, that is why they are doing access-to-HE courses. They are often doing so later in life. There is also a disproportionate number of women and women returners in that group. That is very important, too. What we are doing is therefore socially regenerative; it is about social justice. All I do is driven by my passion for social justice. That is what those courses are about and that is why we have taken this action.

However, that alone, in my judgment, would not have been sufficient. That is why I wanted a bursary fund. The hon. Member for Blackpool South has asked how much of that is drawn from existing provision. About £20 million is completely new money. As hon. Members will know, there is some existing learner support money in FE. It is targeted at, for example, people with learning difficulties and disabilities. That will be made part of this bursary, but I do not anticipate that any learner will be worse off as a result of these changes. In other words, we are not displacing the interests of any group of learners. It is just more straightforward for colleges and learners to have these things in a single national bursary package.

I have always favoured the idea of a national bursary fund, by the way, so this is the fulfilment of another long-held ambition, framed by the discussions that I have had over many years with the sector, which argued that it would be a very effective way of allowing colleges to respond to local circumstances. They know their cohort best; they know their circumstances better than I ever could. We therefore need to build in a level of discretion to allow colleges to work with their communities, their learner base and their local employers to ensure that what they are providing meets the needs.

However, the point made from the Opposition side of the Chamber about how much discretion there will be was well made. I think that we should set down some criteria according to which we expect the money to be allocated and I will do so, having had discussions with the sector and bearing in mind—let us get the time scale clear—that the application period for loans opens in April 2013 for courses starting in August or September 2013. Therefore, although it is true that we will not have a chance to debate the matter more fully until this September, it is not happening until the year after the next academic year. The hon. Member for Blackpool South makes the point that FE colleges must plan and he is right. That is why we have done what we have now, rather than waiting any longer. I hope that the fund will address the issue of older learners, who were, according to the impact assessment, disproportionately risk averse in terms of loans. That is hardly surprising. Someone of 55 might perceive a 30-year loan in a rather different way from someone of 20 or 25.

[George Eustice (Camborne and Redruth) (Con)]

My hon. Friend the Minister makes a very important point. May I welcome the cautious approach that he has taken in this area? Does he agree with me that at a time of recession, when we are trying to get our economy going, supporting adult learning is incredibly important for reskilling the work force and those who may find themselves out of work?

[Mr Hayes]

As I am the champion of apprenticeships, my hon. Friend would hardly expect me to disagree with that analysis. He is right that skills are critical to recalibrating the competences of our work force in a way that makes our economy more sustainable by making our businesses more resilient.

The bursary fund is exciting and new and will allow us to address some of the perfectly properly argued concerns of Opposition Members, but more than that, I wanted to accept NIACE’s proposal of a mid-life learning health check, so that we could look at people at the age of 40 and 50 perhaps and use the national careers service to gauge when and where they could study to upskill or reskill. That there is a need for that has been argued by the sector for some time, and we have taken it on board as part of this package.

On the issue of STEM, which was raised specifically, I take the view that tying capital investment to STEM is not only about growing capacity, but about pinning down the costs of those courses. It is often argued that the costs are so high because of the need to resource in order to deliver them. I will look at how we can be specific about that in the next FE capital round. We have already had a number of such rounds, and we will have many more, because it is vital that we invest in our college infrastructure. We have excellent colleges, such as the one that I visited in Stoke, when, as a result of the kindness of the hon. Member for Stoke-on-Trent North (Joan Walley), I was able to take away with me an Arnold Bennett volume to read over my brief summer sojourn.

All of that represents responsiveness. It was developed after discussion with hon. Members on both sides of the House. It was certainly discussed with the sector. It is a considerable step forward. But I just say this. Our determination is to ensure that it is put in place efficiently and effectively, so there will be no paper-based system. This will be done properly. The Student Loans Company will get it right, as the hon. Member for Blackpool South urged it to do, quite properly. This is a fair package—a just package. It is a package of which we can all be proud. We should now move forward together with confidence to put in place loans and get rid of up-front fees—a point that the hon. Member for Stoke-on-Trent Central very generously made and that I would have made otherwise. We should do so in the spirit that has imbued all we have done; one of elevating practical learning by elevating those who teach and learn in our FE colleges, who change so many lives by changing so many life chances.