Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to page 66 of the Higher education policy statement & reform consultation Equality analysis published in February 2022, what assessment she has made of the implications for her policies of that report’s findings on the disparity in percentage increases in loan repayments between female borrowers and male borrowers.
Answered by Robert Halfon
The department has carefully assessed the impact of changes and published a full and comprehensive analysis in the HE Reform and Consultation Document Equality Impact Assessment, which can be found here: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.
The student loan repayment system under Plan 5 is progressive, with repayments being positively correlated with lifetime earnings. The highest earners make the largest individual contributions to the system overall, and the lowest earners are required to contribute the least.
Lower earners, whether male or female, are protected. If a borrower’s income is below the repayment threshold, they will not be required to make any repayments at all. At the end of the loan term, any outstanding loan debt, including interest accrued, will be written off at no detriment to the borrower. No commercial loans offer this level of protection.
The department will continue to keep the student finance system, including repayment terms, under review to ensure that it remains sustainable and delivers value for money for students and the taxpayer.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will make an assessment of the potential merits of freezing the interest applied to student finance loans during (a) career breaks and (b) earning reductions relating to childcare responsibilities.
Answered by Robert Halfon
The government wants a sustainable student finance system that is fair to students and taxpayers, and which continues to enable anyone with the ability and the ambition to benefit from higher education to do so. The student finance system protects borrowers, including people on career breaks or with childcare responsibilities, if they see a reduction in their earnings. Student loan repayments are made based on a borrower’s monthly or weekly income, not the interest rate or amount borrowed, and no repayments are made for earnings below the relevant repayment threshold.
The recent student loan (Plan 5 reforms) makes the student loan system fairer for taxpayers and fairer for students, helping to keep the system sustainable in the long term. The new loan plan asks graduates to repay for longer and from an income threshold of £25,000, but also increases certainty for borrowers by reducing interest rates to RPI only. This change ensures that borrowers on the new Plan 5 terms will not repay, under those terms, more than they originally borrowed over the lifetime of their loans, when adjusted for inflation. Lower earners will still be protected. If a borrower’s income is below the repayment threshold of, currently, £25,000 per year, they won’t be required to make any repayments at all. Any outstanding debt, including interest accrued, is written off at the end of the loan term with no detriment to the borrower. No commercial loans offer this level of borrower protection. To further protect borrowers, where the Government considers that the student loan interest rate is too high in comparison to the prevailing market rate (PMR) for comparable unsecured personal loans, it will reduce the maximum student loan interest rate charged by applying a cap in line with the PMR.
A comprehensive equality impact assessment of how the student loan reforms may affect graduates, including detail on changes to average lifetime repayments under Plan 5, was produced and published in February 2022. It is available at: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 26 April 2023 to Question 181305 on Free School Meals, what guidance her Department has provided to local authorities on ensuring that eligible pupils (a) on school premises and (b) at any other place where education is being provided are in receipt of free school meals.
Answered by Nick Gibb
The Education Act 1996 places a duty on maintained schools and academies to provide nutritious free meals to pupils who meet the eligibility criteria, including being a registered pupil of a state funded school.
Free School Meal (FSM) provision should be made to eligible pupils either on the school premises or at any other place where education is being provided.
The Department has published guidance for schools on FSM provision to eligible pupils who are being taught remotely. The guidance can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1136309/Providing_remote_education_non-statutory_guidance_for_schools.pdf, and: https://www.gov.uk/government/publications/handling-strike-action-in-schools, and: https://www.gov.uk/government/publications/reinforced-autoclaved-aerated-concrete-estates-guidance.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to ensure that the provisions of the statutory guidance entitled Cost of school uniforms published in November 2021 are enforced.
Answered by Nick Gibb
The statutory guidance on the cost of school uniforms came into force in September 2022, so all schools should now be compliant. The only exception to this would be where this would breach a pre-existing supplier arrangement. The statutory guidance is available at: https://www.gov.uk/government/publications/cost-of-school-uniforms/cost-of-school-uniforms.
If parents are concerned about the cost of their child’s school uniform, they should raise this with the school, including through the school’s published complaints process where necessary.
If a parent is unhappy with the outcome of their complaint, they can raise this with the Department. The Department will consider whether the uniform policy meets the requirements of the guidance. The Department can use its existing statutory and funding agreement levers to make sure schools follow the guidance.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, whether her Department has made an assessment of the potential impact of the level of Teachers’ Pensions Scheme employer contributions on (a) the budgets of Higher Educational institutions and (b) the number of academic jobs in the higher education sector.
Answered by Robert Halfon
The Teachers’ Pension Scheme (TPS) is one of the best pension schemes available. It is a defined benefit scheme, which means that members receive an index-linked income in retirement, that it has a large employer contribution element, and that it is underwritten by HM Treasury.
The arrangements for valuing public service pension schemes, like the TPS, recognise that there are a wide number of factors that affect the cost of providing the benefits involved, and those factors are subject to regular change, including longevity, member behaviour and economic performance. Reviewing those factors every four years, which is in line with practice for similar pension schemes, is necessary to ensure that the contribution rate employers pay reflects a reasonably up-to-date view of costs, including for higher education (HE) providers. There would be limited value in seeking to forecast likely costs beyond that because of the potential for the wide range of factors involved to change, and therefore there are no plans to make such forecasts currently.
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, on 30 March 2023 the Government announced its commitment to providing funding for employers whose employment costs are centrally funded. HE providers are not covered by this commitment. This is consistent with the decision to not fund a similar TPS cost increase in 2019. The Department expects the 2020 TPS valuation to be completed and revised employers’ contribution rates to be confirmed in September 2023. At this point it will be possible for HE providers to accurately assess how any changes in employers’ contribution rates may affect budgets.
The Department recognises that, while the Office for Students’ annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department, along with HM Treasury, recognise the importance of this issue, and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, whether she has made an assessment of the potential merits of expanding the scope of Teachers' Pension Employer Contribution Grants to include Higher Education institutions in the context of increases in Teachers’ Pensions Scheme employer contributions.
Answered by Robert Halfon
The Teachers’ Pension Scheme (TPS) is one of the best pension schemes available. It is a defined benefit scheme, which means that members receive an index-linked income in retirement, that it has a large employer contribution element, and that it is underwritten by HM Treasury.
The arrangements for valuing public service pension schemes, like the TPS, recognise that there are a wide number of factors that affect the cost of providing the benefits involved, and those factors are subject to regular change, including longevity, member behaviour and economic performance. Reviewing those factors every four years, which is in line with practice for similar pension schemes, is necessary to ensure that the contribution rate employers pay reflects a reasonably up-to-date view of costs, including for higher education (HE) providers. There would be limited value in seeking to forecast likely costs beyond that because of the potential for the wide range of factors involved to change, and therefore there are no plans to make such forecasts currently.
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, on 30 March 2023 the Government announced its commitment to providing funding for employers whose employment costs are centrally funded. HE providers are not covered by this commitment. This is consistent with the decision to not fund a similar TPS cost increase in 2019. The Department expects the 2020 TPS valuation to be completed and revised employers’ contribution rates to be confirmed in September 2023. At this point it will be possible for HE providers to accurately assess how any changes in employers’ contribution rates may affect budgets.
The Department recognises that, while the Office for Students’ annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department, along with HM Treasury, recognise the importance of this issue, and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will make an assessment of the potential merits of providing Higher Education institutions with transitional relief subsidies to help cover the cost of rises in Teachers' Pensions Scheme employer contributions.
Answered by Robert Halfon
The Teachers’ Pension Scheme (TPS) is one of the best pension schemes available. It is a defined benefit scheme, which means that members receive an index-linked income in retirement, that it has a large employer contribution element, and that it is underwritten by HM Treasury.
The arrangements for valuing public service pension schemes, like the TPS, recognise that there are a wide number of factors that affect the cost of providing the benefits involved, and those factors are subject to regular change, including longevity, member behaviour and economic performance. Reviewing those factors every four years, which is in line with practice for similar pension schemes, is necessary to ensure that the contribution rate employers pay reflects a reasonably up-to-date view of costs, including for higher education (HE) providers. There would be limited value in seeking to forecast likely costs beyond that because of the potential for the wide range of factors involved to change, and therefore there are no plans to make such forecasts currently.
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, on 30 March 2023 the Government announced its commitment to providing funding for employers whose employment costs are centrally funded. HE providers are not covered by this commitment. This is consistent with the decision to not fund a similar TPS cost increase in 2019. The Department expects the 2020 TPS valuation to be completed and revised employers’ contribution rates to be confirmed in September 2023. At this point it will be possible for HE providers to accurately assess how any changes in employers’ contribution rates may affect budgets.
The Department recognises that, while the Office for Students’ annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department, along with HM Treasury, recognise the importance of this issue, and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, if he will make an assessment of the potential merits of creating a long-term forecast of scheduled increases to Teachers' Pension Scheme employer contributions on Higher Education institutions.
Answered by Robert Halfon
The Teachers’ Pension Scheme (TPS) is one of the best pension schemes available. It is a defined benefit scheme, which means that members receive an index-linked income in retirement, that it has a large employer contribution element, and that it is underwritten by HM Treasury.
The arrangements for valuing public service pension schemes, like the TPS, recognise that there are a wide number of factors that affect the cost of providing the benefits involved, and those factors are subject to regular change, including longevity, member behaviour and economic performance. Reviewing those factors every four years, which is in line with practice for similar pension schemes, is necessary to ensure that the contribution rate employers pay reflects a reasonably up-to-date view of costs, including for higher education (HE) providers. There would be limited value in seeking to forecast likely costs beyond that because of the potential for the wide range of factors involved to change, and therefore there are no plans to make such forecasts currently.
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, on 30 March 2023 the Government announced its commitment to providing funding for employers whose employment costs are centrally funded. HE providers are not covered by this commitment. This is consistent with the decision to not fund a similar TPS cost increase in 2019. The Department expects the 2020 TPS valuation to be completed and revised employers’ contribution rates to be confirmed in September 2023. At this point it will be possible for HE providers to accurately assess how any changes in employers’ contribution rates may affect budgets.
The Department recognises that, while the Office for Students’ annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department, along with HM Treasury, recognise the importance of this issue, and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, whether her Department plans to take steps to support Higher Education institutions with the cost of (a) staffing and (b) course provision to cover potential increases in Teachers' Pension Scheme employer contributions.
Answered by Robert Halfon
The Teachers’ Pension Scheme (TPS) is one of the best pension schemes available. It is a defined benefit scheme, which means that members receive an index-linked income in retirement, that it has a large employer contribution element, and that it is underwritten by HM Treasury.
The arrangements for valuing public service pension schemes, like the TPS, recognise that there are a wide number of factors that affect the cost of providing the benefits involved, and those factors are subject to regular change, including longevity, member behaviour and economic performance. Reviewing those factors every four years, which is in line with practice for similar pension schemes, is necessary to ensure that the contribution rate employers pay reflects a reasonably up-to-date view of costs, including for higher education (HE) providers. There would be limited value in seeking to forecast likely costs beyond that because of the potential for the wide range of factors involved to change, and therefore there are no plans to make such forecasts currently.
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, on 30 March 2023 the Government announced its commitment to providing funding for employers whose employment costs are centrally funded. HE providers are not covered by this commitment. This is consistent with the decision to not fund a similar TPS cost increase in 2019. The Department expects the 2020 TPS valuation to be completed and revised employers’ contribution rates to be confirmed in September 2023. At this point it will be possible for HE providers to accurately assess how any changes in employers’ contribution rates may affect budgets.
The Department recognises that, while the Office for Students’ annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department, along with HM Treasury, recognise the importance of this issue, and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Lloyd Russell-Moyle (Labour (Co-op) - Brighton, Kemptown)
Question to the Department for Education:
To ask the Secretary of State for Education, if her Department will bring forward plans to provide immediate financial support to help families meet childcare costs.
Answered by Claire Coutinho - Shadow Minister (Equalities)
In the Spring Budget 2023, my right hon. Friend, the Chancellor of the Exchequer, announced transformative reforms to childcare for parents, children and the economy. By 2027/28, this government expects to be spending in excess of £8 billion every year on free hours and early education, helping families with pre-school children with their childcare costs.
This is the single biggest investment in childcare in England ever and so it is right that we make sure the workforce and the sector are ready for the changes that are coming. The department anticipates rolling out the expansion to entitlements as follows: 15 hours for eligible working parents of 2-year-olds from April 2024, 15 hours for eligible working parents of children aged 9 months to 24 months from September 2024, and a full 30 hours for eligible working parents of children aged 9 months to two years from September 2025. The department is phasing implementation in this way to allow the market to develop the necessary capacity. Full details can be viewed at: https://www.gov.uk/government/news/chancellor-unveils-a-budget-for-growth.
In July 2022, the department announced measures to increase take-up of childcare support to ensure that families can access government support to save them money on their childcare bills. This included our £1.2 million Childcare Choices communications campaign to ensure every parent knows about the government funded support they are eligible for.
This department has doubled the entitlement for working parents of 3 and 4-year-olds to 30 hours and introduced 15 free hours a week for disadvantaged 2-year-olds. On top of this, working parents on Universal Credit may be eligible for help with up to 85% of their childcare costs every month.
Parents who sign up to Tax Free Childcare can get a government contribution of £2 for every £8 they deposit into an online childcare account. This is worth up to £2,000 off the cost of their childcare every year, or up to £4,000 if their child is disabled.