Tag: Liam Byrne

The below Parliamentary question was asked by Liam Byrne on 2014-04-08.

To ask the Secretary of State for Business, Innovation and Skills, whether any alternative learning providers have notified the Higher Education Funding Council for England of material changes which may affect their financial sustainability or quality of provision.

Mr David Willetts

The requirement for providers to notify the Higher Education Funding Council for England (HEFCE) of material changes which may affect their financial sustainability or quality of provision is a new condition that providers are required to meet after they have successfully applied to have courses designated under the under the new specific course designation arrangements. All alternative providers must go through the new process during the 2013/14 academic year. Of those providers that have already successfully applied none has yet notified HEFCE of material changes which may affect their financial sustainability or quality of provision.

The below Parliamentary question was asked by Liam Byrne on 2014-04-03.

To ask the Secretary of State for Business, Innovation and Skills, if he will break down the £31,400,000 for Royal Mail sale transaction costs in his Department’s Supplementary Estimates 2013-14.

Michael Fallon

The Supplementary Estimate included a Reserve Claim to cover the cost of managing and realising the Royal Mail pension assets in 2013-14 of c£31.4m. This is in line with the funding arrangement agreed with HM Treasury in May 2011, whereby costs over and above £50m funded by the Department for Business, Innovation and Skills (BIS) would be met by HM Treasury. These assets transferred to Government from the Royal Mail Pension Plan in April 2012.

The Supplementary Estimate also included a Reserve Claim to cover the total cost of the transaction estimated to be around £32.6m of which £9.2m is stamp duty, £13.1m underwriters and intermediaries commission fees, £4.2m underwriters’ discretionary fee which has not been paid, and the balance the direct retail cost.

The below Parliamentary question was asked by Liam Byrne on 2014-04-07.

To ask the Secretary of State for Business, Innovation and Skills, if he will break down by component elements the increase in the RAB charge from 33 per cent to 45 per cent.

Mr David Willetts

The increase in the RAB charge has been due to:

– macroeconomic effects – earnings growth has been lower than expected since the £21,000 threshold was set making it more generous in real terms than was expected at the time it was set; and

– modelling changes – we have made methodological improvements to our modelling of individual borrower’s earnings over time. We have done this through a new approach that takes greater account of an individual’s past earnings and of Student Loans Company data on actual loan repayments.

The below Parliamentary question was asked by Liam Byrne on 2014-04-03.

To ask the Secretary of State for Business, Innovation and Skills, what criteria is used to assess bids from local enterprise partnerships for the Local Growth Fund.

Michael Fallon

The criteria the Government will be using to assess Strategic Economic Plans and bids for the Local Growth Fund were published in July 2013. There are 3 key criteria: ambition and rationale, value for money and delivery and risk. The most successful LEPs will have strong, deliverable Strategic Economic Plans, evidenced by strong partnership working; robust arrangements for accountability; and effective collaboration across Local Enterprise Partnership geography. These LEPs will earn a greater share of the Local Growth Fund.

The below Parliamentary question was asked by Liam Byrne on 2014-04-07.

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the proportion of student loans issued under the (a) pre-2012 and (b) new funding system that will be fully written off.

Mr David Willetts

Our model is designed to estimate aggregate repayments across the full range of borrowers. It does not estimate outcomes at the individual level, such as the probability of an individual’s loan balance being fully written off.

However, Student Loans Company data for early pre-2012 cohorts show that that around 10% of the cohorts up to 2005 have made no repayments since taking out their loans.