Higher Education Funding

Julian Huppert Excerpts

Wednesday 3rd November 2010 Commons Chamber

[Dr Julian Huppert (Cambridge) (LD)]

I welcome some of the changes. They are more progressive than the Conservatives would have achieved on their own, more progressive than Browne and more progressive than the Labour party intended—the same Labour party that introduced both fees and top-up fees having promised not to. However, I do not support an increase in the cap, as the Minister well knows. Does he share my concern that the increased level of student debt will provide a disincentive to students entering university and will make it harder for them to get mortgages and loans after they leave?

[Mr Willetts]

I hope that the hon. Gentleman recognises that the proposals clearly offer a progressive way forward whereby graduates will have to start repayments only when they earn more than £21,000 a year. That will have a crucial implication for the issue he raises because their monthly repayments will be lower than they otherwise would have been. They will be paying at the rate the previous Government fixed, at 9%, but they will be paying 9% of their earnings over £21,000 rather than those over £15,000. When many building societies and lenders assess young people and graduates for mortgages, they will see lower monthly outgoings under our proposals than they would under the system that we inherited from the previous Government. I hope that the hon. Gentleman will consider that important point.