Question to the Department for Education:

To ask the Secretary of State for Education, with reference to the written ministerial statement of 6 December 2017 on government asset sale, HCWS317,what assessment his Department has made of the lost fee income to the Exchequer from the loans sold in each year of their repayment period.

The government only sells assets when it can secure value for money for taxpayers from doing so. In assessing the value for money of the sale, the government took into account repayments foregone on the loans sold. In executing the sale, we achieved a price that exceeded the retention value of the loans sold, calculated in line with standard HM Treasury green book methodology.

Selling financial assets, like student loans, where there is no policy reason to retain them, where value for money can be secured and where borrowers are not impacted is sound asset management. The sale ensures government resources are being put to best use and is an important part of our plan to repair public finances.

Pursuant to Section 4 of the Sale of Student Loans Act 2008, a report on the sale arrangements was deposited in the House libraries on 7 December 2017 (deposit reference DEP2017-0778): https://www.parliament.uk/depositedpapers.