It is indeed a long title, Presiding Officer, and it’s going to be quite a long statement as well. Presiding Officer, I’m very pleased that, today, we can confirm that we in Wales are able to convert the principles of equity and excellence into radical and rational reforms of student support and higher education funding.

Last November, I published the Government’s response to the final Diamond report and launched a consultation on the implementation of our approach. I am now able to publish a summary report of those consultation responses and confirm the Welsh Government’s position; confirm the package of support that is available for full-time undergraduate, part-time undergraduate and postgraduate students from the start of the 2018-19 academic year; confirm the maximum tuition fee levels that Welsh institutions can charge for full-time undergraduate courses; and highlight the efforts of Welsh universities as our sector confirms it will be the first in the UK to be a living wage sector.

The responses to the consultation were positive about our intention to deliver, with only minor modification, the full Diamond package. I would like to take this opportunity to thank everyone who took the time to respond to the consultation, and to our stakeholders who have been keen to contribute to the development of policies that I believe will be a benchmark for other nations and systems. However, it is clear that there is a job of work to do in communicating the new system. In particular we must reassure parents that the fundamental shift to supporting students with day-to-day costs, rather than post-graduation fee repayment, addresses the very concerns that they often raise. We will need to work closely with the universities, student finance authorities and key advocates on this issue. I will launch a communication campaign to promote the new system of support in the autumn and I would also hope that Members here will take up that challenge. A copy of the summary report of the consultation responses, which also includes confirmation of our final proposals, has been placed in the National Assembly Library.

Having considered the responses to the consultation, and having discussed our proposals with the Student Loans Company and Her Majesty’s Treasury, I am pleased to confirm that, subject to regulations being made, we will be introducing the following packages of support for students who start the first year of their course in the 2018-19 academic year. For full-time and part-time undergraduate students, a new fairer and sustainable system of support will be introduced. Additional support will be available to ensure that students have enough money to meet their day-to-day living costs. Every student will be entitled to support equivalent to the national living wage whilst they study. This will mean that eligible full-time students will receive maintenance support of £11,250 if they study in London and £9,100 per year in the rest of the UK.

Grant support will be targeted at those most in need, although every student will receive a minimum grant of £1,000 regardless of household income. Students from the lowest household income will receive the highest grant: up to £10,250 in London and £8,100 in the rest of the UK. Initial estimates suggest that one third of full-time students will be eligible for this full grant. The average household income for a student in the current system is around £25,000. Under the new system such a student will receive around £7,000 a year in non-repayable grant. For the first time, part-time undergraduate students will receive parity of support for maintenance costs on a pro rata basis to their full-time counterparts.

I would like to thank the Student Loans Company for their hard work, diligence and imagination in getting us to the point where we have been able to deliver this significant programme of reform. I am confident that we have established a strong relationship that delivers for Wales and our citizens.

As I announced previously, we have also accepted the Diamond review's recommendations on support for postgraduate students. This new system of support, which will bring parity of support for postgraduate students, will be introduced in the 2019-20 academic year. However, in recognition that the postgraduate changes will be introduced later than for undergraduate students, I will provide enhanced support in 2018-19, subject to the necessary regulations being made. This will be made up of an enhanced loan of £13,000, which will be available to students wherever they choose to study in the UK. In addition, the Welsh Government will provide funding to Welsh institutions, through HEFCW, to provide additional support for postgraduate students who choose to study in Wales, and it is expected that this will be equivalent to around £4,000 per student.

NUS Wales are to be congratulated for making the case for part-time and postgraduate students, and not just the traditional 18-year-old. It is clear to me that progression into postgraduate study is the contemporary challenge of our seriousness in widening access. It is unfortunate that there has been a 14 per cent drop in Welsh postgraduate taught student numbers over the last decade. As we head with such speed into a future shaped by innovation and high-tech industry, it is our duty to enhance part-time and postgraduate opportunities.

Therefore, and in line with the announcement contained in the UK Government’s budget, we also intend to introduce a postgraduate doctoral loans scheme from 2018-19. Eligible students who are ordinarily resident in Wales will be able to borrow up to £25,000 as a non-means-tested loan. But, just as I’m pragmatic enough to seek advantages of English initiatives when it makes sense to do so, I also know that developments across the border bring other consequences for our operating environment. Wales needs a stable, sustainable and progressive higher education funding settlement that supports students when they need it most, and enables our universities to compete domestically and internationally.

I can therefore confirm that because of the reduction in real terms value of tuition fees, the outlook for Welsh Government budgets, and the financial pressures and relative competitiveness of our universities, we will return to the pre-2012 policy of an inflation-linked maximum tuition fee level for the next three academic years. This, of course, will continue to be paid for via a publicly supported loan system with income-contingent repayments made only after graduation.

Members will know that I have previously set a challenge to universities on the living wage and their sense of civic responsibility. So, having now confirmed that students will receive support equivalent to the national living wage, I am pleased to recognise Universities Wales’s announcement that all Welsh universities will become living wage employers, and they have also confirmed that they will sign up to the Government’s code of practice on ethical procurement and employment. This is a clear demonstration that our education system is based on values of equity, excellence and civic responsibility, and I expect to see further developments in the sector’s commitment to a civic mission over the coming weeks and months.

Presiding Officer, our new progressive and fair system represents a fundamental shift in the way we support students and our institutions. By investing in the success of full-time, part-time and postgraduate students, Wales can and will be the only country in Europe to have taken this huge step forward. Together we can ensure we capture and maximise the potential of all our citizens, and of all corners of our nation.