So according to David Willetts at the BIS committee this morning…
There is no link between income from student loan sales and the planned expansion of HE spending at BIS. The Treasury are (apparently) underwriting an uncosted expansion of the sector, which is very different from the impression George Osborne gave in the Autumn Statement.
There is no BIS budget black hole due to the expansion in loans for HNC/D fees offered, even though BIS had to intervene in the market to stop expansion in this area.
HEPI, in forecasting a RAB charge on income contingent loans of 38% were “right for the wrong reasons”. In a spectacularly relaxed response, the Secretary of State admitted RAB may well rise to in excess of 50%, and that this was due to wages not rising fast enough. Seemingly Mr Willetts was happier to give Ed Milliband “cost of living” attack lines than to admit that HEPI are actually quite good.
9% of UK student fees are paid upfront. That seems high.
David Willetts will provide a response to the BIS Committee on Andrew McGettigan’s identification £1.7bn accounting error in the autumn statement. I wonder if he’ll leave Andrew a blog comment?
I needn’t bother. My original post (linked above) already pointed out the relevant footnote in OBR. That’s how you can tell 1.7billion is missing from Table 2.5
Plug the revised figures back in and that suite of policy measures is no longer covered by proceeds …
Sorry. ‘He’ needn’t bother.