Stephen Gilbert MP

STATEMENT ON HIGHER EDUCATION FUNDING VOTES

Stephen Gilbert backed reforms that will see all gradudates pay less per month than in loan repayments than they do now.

St Austell & Newquay MP Stephen Gilbert voted for reforms to higher education funding that will see no student, whether full-time or part-time, pay any fees up-front; repayments will be based on ability to pay once a graduate is earning over £21,000 a year; graduates will pay back less per month than they do now under the current system; the 25% of lowest earning graduates will repay less in total than they do under the current system; and access to higher education will be protected and indeed improved for those from disadvantaged backgrounds.

Steve Gilbert said:

"Today, Liberal Democrat MPs face one of the most difficult choices since the formation of the Coalition Government. There is no doubt that the proposed changes to higher education funding and student finance are controversial and have attracted a great deal of media and public interest. Over the last two months, since the publication of the Browne Review, I have been committed to listening to all sides of the argument.

I have met with students from my constituency, I have heard from the NUS and other unions, I have met with Liberal Youth and I have listened to my Parliamentary Party among many other groups. I have heard convincing arguments from all sides of the debate.

Let me state clearly that I still believe that higher education should be free for those that have the ability to benefit from it. I was the first in my family to go to university and I passionately believe that every single person should have access to the same opportunities as I did.

The reality though is that the Liberal Democrats are in a Coalition Government with the Conservatives and the party has to work under these circumstances. Being in Coalition Government requires compromise and, with the economic situation we have been left with by Labour, difficult decisions. This is undoubtedly an extremely difficult decision. I have decided how I will vote and I want to explain the key aspects of the policy that have influenced that decision.

Under the current system, which the previous Labour government introduced, graduates start repaying their loans when they earn above £15,000 a year. The Coalition Government proposals will see this repayment threshold rise to £21,000 a year. Graduates will not repay a single penny until they earn more than £21,000 a year. If their earnings increase over this threshold, then they will repay 9% of their earnings above £21,000. This higher repayment threshold will also rise every single year in line with earnings growth.

The effect of this policy is that all graduates will pay back less per month than they do under the current system. For example, a graduate on a starting salary of £21,000, which rises to £27,000 over 20 years, would repay an average of £7 per month rather than the £45 per month that they face now.

The lowest paid quarter of graduates will pay back - in total - less than they would under the current system. The top third of graduate earners will pay back more than they borrow. Those who earn more will pay more. Whatever happens, the loan is written off after 30 years. If your university education doesn't benefit you financially, you don't have to pay for it.

Under the current system 40% of all students, some 200,000 part-time learners each year, pay fees up-front fees before they study. Under these new proposals, their fees - like full-time students - will be payable only after graduation and only when they earn over £21,000 a year.

But, of course, it's not just the cost of tuition we need to consider. What about living costs? For students from families with an income of up to £25,000, the grant for living costs will rise by around £350 to £3,250 a year. There will also be a maintenance loan of £3,875 a year. Overall, there will be more support for living costs than at present for families earning up to £45,000. The Government is also proposing a new £150million National Scholarship Programme for students from disadvantaged backgrounds - offering the first year's tuition free to students from the poorest families. And is consulting on ways to make university's provide a second year's tuition for free for these students.

So, let's be clear, under the new proposals no student, whether full-time or part-time, will have to pay any fees upfront; repayments are based on ability to pay once a graduate is earning over £21,000 a year; every graduate will pay back less per month than they do now under the current system; the 25% of lowest earning graduates will repay less in total than they do under the current system; and access to higher education will be protected and indeed improved for those from disadvantaged backgrounds.

For all of these reasons and after serious and careful consideration, I have decided to vote in favour of the Coalition Government's proposals today.

I know that my vote today will be controversial but I simply ask you to read the proposals in full and understand that the judgement I've reached has been one of the most difficult decisions of my life. I believe however that in the circumstances we face in Coalition Government and as a country, these proposals offer graduates a fairer deal than under the current system and this would not be the case were it not for Liberal Democrat influence in government."