9. How is the Government encouraging children in South Wales East to embark on further education? OQ58221

The 2022-23 settlement sees the highest level of investment in further education in recent history. We recognise that more learners are choosing to stay in post-16 education. Through the budget, we will ensure that learners in post-16 education are offered the best possible support, in particular following the impact of the pandemic.

Thank you very much for that response.

The vast majority of my region is made up of working-class communities where the cost-of-living crisis is being felt most acutely. The announcement last week that interest rates on student loans would be capped at 7.3 per cent to prevent them rising to 12 per cent was a mercy, but a very small one at that. An interest rate of 7.3 per cent is still extortionate and off-putting. I fear this huge interest rise on student loans will deter many young people from working-class families from fulfilling their potential and attending university. This may only serve to increase the attainment gap between the haves and the have nots, something NUS Cymru has already spoken out about. How is the Welsh Government reacting to the latest developments in student loan interest rates, combined with the added pressure brought on by the cost-of-living crisis, to ensure that kids from working class families are not discouraged from entering higher education?

I thank the Member for his point. It's a really important question. He might have seen some of the remarks I made last week in particular about access to all kinds of education for young people from perhaps some of our most disadvantaged backgrounds. For the first time this year, and in each subsequent year, we will be able to provide—obviously, subject to the consent of the individual—for example, data through UCAS on the free school meals eligibility of individual learners to enable contextualised offers to be made.

He's making a slightly different point about the costs of going to university. I agree with him; the measures that we see the UK Government taking are a great concern, as well as some of the changes they are mooting in relation to requiring different grade thresholds for GCSE, which I think are regressive and have no place in any policy that is based on widening access to university.

As he may know, although the ability to fund student finance is devolved to Wales, some of the choices we make are constrained by our ability to be able to liaise with HMRC and the Student Loans Company, which are not, obviously, devolved. We continue to have in Wales the most progressive student finance support package of any part of the UK in terms of the mix between loans and grants, but also—which is not very often remarked upon—in Wales, as soon as you start to repay your debt, you immediately get a £1,500 discount on your repayment, which is the only part of the UK in which that happens.

But, I take very seriously the point that he's made. Whatever we can do, we will do. Obviously, we are committed to our progressive system here in Wales. On the point of interest rates in particular, what I would say is that that doesn't affect the monthly outgoing, it's the length of the loan that that affects. I don't diminish for a second that it's a very important point, but in terms of the immediate affordability, it won't have that immediate increase on the monthly outgoing. But, it's an important point, as it does extend the cost of tuition overall.