Liam Byrne – 2014 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Liam Byrne on 2014-04-25.

To ask the Secretary of State for Business, Innovation and Skills, with reference to page 204 of HM Treasury’s Central Government and Supply Estimates 2013-14, February 2014, HC 1006, if he will provide a breakdown of the £15.877 million supplementary estimate for the increase in costs of student loan debt sale.

Mr David Willetts

The Supplementary Estimate adjustment for the student loan debt sale relates to the Government subsidising the sale of student loans in 1998 and 1999. The adjustment reflects changes to the value of the Government liability following annual debt sale subsidy payments, including adjustments for cancelled loans.

The subsidy will continue until all the loans are extinguished which is expected to be no earlier than 2028, which is the 30 year duration of the first debt sale agreement.

Further details of the liability are available in the BIS Annual Report and Accounts.