Georgia Gould

No, I must make progress. The lifelong learning entitlement will transform the student finance system, giving people flexible access to high-quality education throughout their working lives. From January 2027, for the first time learners will be able to use their entitlement to fund individual modules as well as full courses at levels 4 to 6 at colleges, universities and independent providers. A number of Members, including my hon. Friends the Members for Sheffield Central and for Edinburgh South West (Dr Arthur), raised the issue of international students and support for them. I want to be clear: international students are welcome in the UK. They enrich our campuses and communities, and are ambassadors for this country long after they graduate. They made a vital contribution of £12.7 billion in fee income in 2023-24—almost a quarter of the sector’s income, as other Members said. The new international education strategy confirms our commitment to welcoming students who meet the requirements to study here. A range of questions were asked about the international student levy. That is part of a wider package that also includes inflation-linked fee rises, and it is important to stress that every penny it raises will be reinvested in higher education and skills—including new maintenance grants for disadvantaged students, which many hon. Members raised, to remove some of the barriers around the cost of studying. We know how important those are. The levy is simple and proportionate: a flat £925 fee per international student per year from 2028-29, paid for by providers with an allowance of 220 students each. We listened to the sector; the flat fee is equivalent to around 4% of international fee income, down from the 6% first provided. To answer the questions asked by my hon. Friend the Member for Southampton Itchen (Darren Paffey) and others, we will publish an updated impact assessment ahead of the Finance Bill. I was asked a number of questions about the pressure that many students are facing, including from my friends from Cornwall, the hon. Member for Camborne and Redruth (Perran Moon) and my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham). We know that cost of living pressures have hit students hard. The previous Government removed maintenance grants and the real-term value of loan support for students fell by almost 20% between 2020 and 2024. We are taking action to put that right. We are introducing a targeted maintenance grant from 2028-29 of up to £1,000 a year for disadvantaged students on top of their loan, putting cash in their pockets without adding to their debt. The new grants will support students from low-income households studying full-time courses, which is in line with the Government’s mission and industrial strategy. We are future-proofing maintenance loans by increasing them in line with forecast inflation every year, with the biggest cash increase going to students from the lowest-income families. My hon. Friend the Member for Southampton Itchen raised the issue of student loans, and I want to address that in the time that remains to me. As we have heard from across the Chamber today, giving those who want it and have the ability the chance to study in higher education changes lives. We are determined to support students who want to go to university to fulfil their aspirations. We cannot lose sight of the value that student loans provide in enabling that and levelling the playing field at the point of access. They remove that upfront financial barrier to studying and enable students to repay when they are earning. We inherited a student loan system that is not working as fairly as it should, and we recognise that some students and graduates feel the impact of that. We are making the tough but necessary decisions to deliver a fairer and more sustainable system. We increased the plan 2 thresholds in 2025—its first increase since 2021—and we again raised the plan 2 repayment threshold in April, to £29,385. We have also capped interest rates for plan 2 and plan 3 loans at 6% for the academic year 2026-27. There are a whole range of very important discussions that came up today. I know that myself— Motion lapsed (Standing Order No. 10(6)).