Teaching and Higher Education Bill [H.L.]

Teaching and Higher Education Bill [H.L.] - continued	House of Commons
PART II, FINANCIAL PROVISION FOR HIGHER AND FURTHER EDUCATION - continued
Supplementary - continued

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CHAPTER II

SCOTLAND

Grants and loans: Scotland.

24. - (1) In section 73 of the Education (Scotland) Act 1980 (power of Secretary of State to make grants and loans)-

(a) the existing provision shall be subsection (1) of that section;

(b) in paragraph (f) of that subsection, after the word "allowances" there shall be inserted the words "or loans"; and

	"(2) If the Secretary of State so determines, any function exercisable by him by virtue of regulations made under paragraph (f) of subsection (1) above shall, to such extent as is specified in his determination, be exercisable instead by such person or body as is so specified.
	(3) A person or body by whom any function is for the time being exercisable by virtue of subsection (2) above shall comply with any directions given by the Secretary of State as to the exercise of that function."

(2) After section 73 of that Act there shall be inserted-

"Regulations relating to student loans.	73A. - (1) This section applies in relation to regulations under paragraph (f) of section 73(1) of this Act made with respect to loans.
	(2) Regulations to which this section applies may include-
	(a) such transitional provision and savings in connection with the repeal by the Teaching and Higher Education Act 1998 of any enactment contained in the Education (Student Loans) Act 1990 as the Secretary of State considers necessary or expedient; and
	(b) provision for and in connection with the transfer-
	(i) to the Secretary of State; or
	(ii) to such other person as may be specified in the order,
	of rights and liabilities arising under or by virtue of that enactment.
	(3) Regulations to which this section applies may make such provision as the Secretary of State considers necessary or expedient in connection with the recovery of amounts due from borrowers under loans granted under section 73(1)(f) of this Act, including provision for-
	(a) imposing on employers, any government department or (as the case may be) such other persons or bodies as may be prescribed, requirements with respect to-
	(i) the making of deductions in respect of amounts so due (or, in any prescribed circumstances, amounts assessed in accordance with the regulations to be so due) from remuneration payable to borrowers,
	(ii) the collection by other means of such amounts,
	(iii) the transmission of amounts so deducted or collected to the Secretary of State in accordance with directions given by him;
	(b) imposing on employers requirements with respect to the keeping and production of records for such purposes as may be prescribed;
	(c) imposing on borrowers requirements with respect to-
	(i) the provision of such information, and
	(ii) the production of such documents and records,
	relating to their income as may be prescribed;
	(d) enabling the Secretary of State to require the reimbursement by borrowers of costs or expenses of any prescribed description incurred by him in connection with the recovery of unpaid amounts;
	(e) applying or extending with or without modification, for purposes connected with the recovery of amounts under regulations under section 73(1)(f) of this Act or under this section, any of the provisions of the Income Tax Acts or of regulations under section 203 of the Income and Corporation Taxes Act 1988 (PAYE).
	(4) Regulations to which this section applies shall not prescribe a rate of interest to be borne by loans higher than that which the Secretary of State, having regard to such retail price index as appears to him to be appropriate, is satisfied is required to maintain the value in real terms of the outstanding amounts of such loans.
	(5) Regulations to which this section applies may make provision, for the purpose of calculating the interest to be borne by loans, for repayment by borrowers to be treated as having been made or received on such date or dates as may be prescribed.
	(6) Nothing in this section prejudices the generality of section 73(1)(f) of this Act.
Provision as to maximum amounts of certain allowances.	73B. - (1) This section applies to allowances payable under section 73(1)(f) of this Act in respect of the fees charged in respect of attendance on a course of higher education.
	(2) The Secretary of State may by order made by statutory instrument determine the maximum amount payable in any academic year of allowances to which this section applies in respect of such courses or classes of courses of higher education as may be so determined and, subject to subsection (3) below, a statutory instrument containing an order under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.
	(3) Where the Secretary of State has determined a maximum amount under subsection (2) above, he shall not make a further determination increasing that maximum amount under that subsection unless-
	(a) he is satisfied that the increase is no greater than is required to maintain the allowance's value in real terms; or
	(b) a draft of the order containing the further determination has been laid before, and approved by a resolution of, each House of Parliament.
	(4) For the purposes of subsection (3)(a) above the Secretary of State shall have regard to such retail prices index as appears to him to be appropriate.
	(5) In subsection (2) above, "courses of higher education" means courses of higher education falling within section 38 of the Further and Higher Education (Scotland) Act 1992."

Imposition of conditions as to fees at further and higher education institutions in Scotland.

25. - (1) In section 10 of the Further and Higher Education (Scotland) Act 1992 (payment of grants to Funding Council), after subsection (2) there shall be inserted-

	"(2A) The power of the Secretary of State under subsection (2) above to impose conditions shall include power to impose a condition requiring the Funding Council to impose, in such cases as may be specified in the condition, a condition under subsection (2B) below in relation to any grant, loan or other payment made by the Funding Council in the exercise of any function prescribed by an order under section 7(2) of this Act.
	(2B) A condition under this subsection may require-
	(a) the board of management of any college of further education; or
	(b) any other person to whom any such grant, loan or other payment as is mentioned in subsection (2A) above is made,
	to secure that no fees are payable to the board of management or, as the case may be, person by any specified class of persons in respect of any specified matters in connection with their attending courses of any specified description.
	(2C) A condition under subsection (2B) above shall impose, in the event of a failure by a board of management mentioned in paragraph (a) of that subsection or, as the case may be, of such other person as is mentioned in paragraph (b) of that subsection to comply with the requirement specified in that subsection, such further financial requirements on that board or person as may be specified, which may include requirements relating to the repayment, with or without interest, of the whole or any part of any sums received by that board or person in respect of the grant, loan or other payment in question.
	(2D) Where the functions of the Secretary of State under section 4 of this Act are exercised by the Funding Council, the prohibition contained in subsection (3) of that section shall not apply in relation to conditions imposed under subsection (2B) above."

(2) In section 42 of that Act (grants in relation to higher education), after subsection (3) there shall be inserted-

	"(3A) The power of the Secretary of State under subsection (1) above to impose conditions shall include power to impose a condition requiring the Council to impose, in such cases as may be specified in the condition, a condition under subsection (3B) below in relation to any grants, loans or other payments made by the Council under section 40(3) of this Act in respect of activities eligible for funding under that section.
	(3B) A condition under this subsection shall require the recipient of a grant, loan or other payment made under section 40(3) of this Act to secure that the fees payable to the recipient by any class of persons prescribed by regulations in respect of their attending courses of any description so prescribed are equal to such maximum amount as may, in relation to any such class of persons attending courses of any such description, be determined by the Secretary of State under section 73B(2) of the Education (Scotland) Act 1980.
	(3C) No condition under subsection (3B) above shall apply in relation to any fees which are payable, in accordance with regulations under section 1 of the Education (Fees and Awards) Act 1983 (fees at universities and further education establishments), by students other than those falling within any class of persons prescribed by such regulations for the purposes of subsection (1) or (2) of that section (persons connected with the United Kingdom, etc.).
	(3D) The Secretary of State shall not exercise the power to prescribe descriptions of courses under subsection (3B) above in such a way as to discriminate-
	(a) in relation to courses for the training of persons preparing to be teachers which are open only to persons holding a degree, between different courses on the basis of the subject in which such training is given; or
	(b) in relation to other courses, between courses at the same or a comparable level on the basis of the particular areas of study or research to which they relate.
	(3E) A condition under subsection (3B) above shall impose, in the event of a failure by the recipient of a grant, loan or other payment made under section 40(3) of this Act to comply with the requirement specified in that subsection, such further financial requirements on that recipient as may be specified, which may include requirements relating to the repayment, with or without interest, of the whole or any part of any sums received by that recipient in respect of the grant, loan or other payment in question.
	(3F) Subsection (3) above shall not apply in relation to conditions imposed under subsection (3A) above.
	(3G) The prohibition contained in section 40(4) of this Act and the duty imposed by section 41(2) of this Act shall not apply in relation to conditions imposed under subsection (3B) above.
	(3H) In exercising his powers under this section, the Secretary of State shall ensure that any arrangements for the payment of grant in respect of tuition fees for the fourth or any subsequent year of study at a higher education institution in Scotland apply equally to a student whose parental home or normal place of residence for purposes other than attendance at that institution is in England, Wales or Northern Ireland as they do to a student whose parental home or normal place of residence for purposes other than attendance at that institution is in Scotland."

Prepared 12 March 1998