Financial Support (Students)

Joan Ruddock Excerpts

Wednesday 15th December 2010 Westminster Hall

[Teresa Pearce (Erith and Thamesmead) (Lab)]

It is a privilege to have this debate under your chairmanship, Ms Clark. I am pleased to see so many hon. Members here to talk about an important issue. I will try to keep my speech brief, so that everybody can get in to make their points and, more importantly, to ask questions.

I asked for this debate for two reasons. First, we need to highlight the effect that the decision to scrap the education maintenance allowance will have on young people throughout the country. Secondly, we need answers about how the proposed financial support scheme, the enhanced discretionary learner support fund, will work.

Last week in the main Chamber, a vote was carried that will allow university tuition fees to rise up to £9,000 in a year to plug the gaping hole in the higher education budget left by the Government’s 80% cut. I voted against that rise with other Opposition Members. The Government fail to grasp that, by cutting EMA, many young people from poorer backgrounds, particularly in constituencies such as mine, will never reach the level at which they will be able even to consider attending university. Taken together, the tuition fee increase and the scrapping of EMA are a heavy blow to young people in constituencies such as mine.

The EMA keeps many young people in Erith and Thamesmead in college or sixth form—and in some cases, it has to be said, on the straight and narrow. Their families rely on payments to cover the costs of attending college, including transport and books, and they often help top up the family budget. One of my constituents, Trudy Mackie, wrote to me recently, saying:

“I am a single parent”,

living in Thamesmead,

“and have worked full time since leaving school myself. I have managed to purchase my own home and save a little money while supporting my daughter throughout her school life…She was identified as gifted and talented, as a school student likely to do well with support, and we have hoped and aimed for her to go to university for a long time on that basis. We are very concerned about the scrapping of the EMA and how this will affect our budgets. This…really does help my daughter to do extracurricular activities”

that enhance her education, such as

“theatre trips and additional lectures…Our household will struggle without this money.”

[Joan Ruddock (Lewisham, Deptford) (Lab)]

My constituent, Timar Misghina, a student, said precisely the sorts of things that my hon. Friend has just quoted. Tellingly, she said that EMA not only helps with books, transport and clothing, but helps to get her through her studies with fewer worries. It is important that, when people are trying to study, they and their families are not in a state of constant worry about money.

[Teresa Pearce]

I agree. It makes a difference if people know that they can concentrate on their education without worrying about the bus fare.

Some 43% of students at Bexley college and 38% of students at Greenwich college—the two largest colleges serving my constituency—receive EMA, the vast majority receiving the higher rate of £30 a week. Some argue that this money does not have an effect, but the principal of Bexley college, Danny Ridgeway, has confirmed that, in the past two academic years, students at his college in receipt of EMA have been more likely to pass their course than their colleagues who have not received EMA support. I believe that this positive outcome is linked to the attendance requirement attached to EMA payments.

--- Later in debate ---

[Joan Ruddock]

What does the hon. Gentleman think will be the consequence of students not knowing whether they are eligible for EMA? There might be a grant, but they would not know. When it comes to choosing a further education college, such as Lewisham college in my constituency, eligible students can get the money and have some certainty. They can make a real choice about where they take their education. What is the future?

[Julian Sturdy]

I accept the right hon. Lady’s point. There is no doubt that we must ensure that the policy is clear. That has not always been the case, which is why I want to speak up. However, I broadly support the policy, and I will go into the reasons later. We must make sure that information is clear because it is important for young people to have it at their fingertips so that they can make the critical decisions that will affect their future lives. The right hon. Lady makes a valid point.

A matter that has already been touched on is that Government research shows that 90% of EMA spending is dead-weight, going to students who would have stayed in education regardless of the scheme. The hon. Member for Erith and Thamesmead touched on that, and I am interested to hear what the Minister has to say. I share the Government’s view that taxpayers’ money deserves far greater respect. If EMA is truly only needed by just 12% of those who receive it—

--- Later in debate ---

[Dan Rogerson]

The hon. Gentleman can look at Hansard and see how everyone in the Chamber voted. I think we should stick to the debate that we are having today.

The key question for me is how we are using money that should be targeted at the people who need it most. I have had e-mails from constituents who are very concerned, and I accept that there will be some people whose plans for the future will be affected and who will need to think very carefully about what they can do. I shall return to the issue of transport, which is crucial, particularly in an area such as mine.

I have had e-mails from a constituent in Camelford, whose daughter and son get EMA for their education and feel that it is not enough. There is a transport element to getting to the college, and other costs. They believe that they need greater support to secure that. However, they are also aware of other people in the town—and I accept that this is anecdotal—who they feel do very nicely, go on all sorts of holidays and have a wonderful time, and are still in receipt of EMA. That suggests to me that there are, as happens in all areas, some people who are getting support that would perhaps be better targeted at those who need it most.

The Government’s response to the issue is, understandably, to consider the overall budget; but it is also to think about targeting. There are concerns, in a college group such as Cornwall college group, that some people have come into education in the past few years because support is available. I do not accept the argument of dead-weight, but we must also accept that there are people who get EMA who would have gone into further education at 16.

[Joan Ruddock]

rose—

[Dan Rogerson]

I shall give way in a moment, but I want to finish the point. The hon. Member for Erith and Thamesmead was keen to point out that there are perhaps other benefits to the support, rather than just whether someone would attend. That is an important consideration, but the primary one, and what most of the debate has focused on—particularly the remarks of the hon. Member for Kingston upon Hull East—is people not being in education at all and getting out entirely.

Whether people in receipt of EMA may attend a bit more because it has the attendance component is a separate issue. The hon. Gentleman levelled the charge at the Government that people will just not receive education; they will just not go. I do not accept that, because the Government system will have to, and will, address—or if it does not, a lot of Members on this side will want to know why—those people on the margin, where there is an effect on the decision whether to attend.

[Dan Rogerson]

I have already agreed that I will give way to the right hon. Member for Lewisham, Deptford (Joan Ruddock).

[Joan Ruddock]

I am extremely grateful to the hon. Gentleman for giving way. EMA was also piloted in my constituency, so would he accept from me that there is a dimension with which he will be less familiar than I am—ethnic minorities? At Lewisham college, half the students pursuing FE courses are from ethnic minorities and 45% of students are on EMA. He may like to acknowledge that there is a special reason why it has created new advantages and encouragement to people who might have been less inclined to stay on at school.

[Dan Rogerson]

I welcome the right hon. Lady’s intervention. There will be significant other factors in areas different from our own, despite proximity and good public transport. They will be issues such as the ability of families to offer support. In my area, there are issues such as whether young people can physically get to education, which is why transport is crucial for me.