My Lords, I am grateful for this opportunity to further discuss our vision for lifelong learning. As part of the lifetime skills guarantee, and as I hope noble Lords are now aware, the lifelong loan entitlement will be introduced from 2025. It will provide individuals with a loan entitlement to the equivalent of four years of post-18 education, to use over their lifetime. It will be available for modules and full courses of study at higher technical and degree levels, at levels 4 to 6, regardless of whether they are provided in colleges or universities. I hope that the noble Baroness, Lady Janke, is reassured that this plan will provide flexibility. I say to the noble Lord, Lord Addington, that it will enable people to update and change their skill base across their lifetime.
While the sentiment of the amendment to develop lifelong learning is admirable and one the Government share, unfortunately the personal skills account policy would create significant fiscal and logistical challenges—so
at this point I would advise the noble Lord, Lord Addington, not to place any bets on its acceptance. The amendment could disrupt our established loan support system to accommodate an additional system of grants. This would substantially increase the costs to the taxpayer, both in the cost of such grants themselves and in their administration.
The amendment suggests that a new body would be created to administer these learning accounts for every adult resident in England. This process would have to happen seven years before an individual could first make use of any funds at 25, and integration of these new accounts with the Student Loans Company’s existing operations would have significant costs and operational impacts. Moreover, there is an opportunity cost to the Government in depositing thousands of pounds into these accounts, only for them potentially to be left idle and waiting for an unknown point of use. This poses a strong contrast to our current loan support, which is available at the point of study.
To answer one of the questions raised by the noble Baroness, Lady Bennett, we are all contributing to further and higher education, as what is called the RAB rate is currently 53p in the pound. That is what the Government end up paying for under the current student loan system that is not repaid by the student.
Finally, these significant changes to the basis of our student finance offer would risk delaying the rollout of the lifelong loan entitlement beyond 2025. I know that many noble Lords have sought to bring that date even earlier. As noble Lords will be aware, the introduction of the lifelong loan entitlement was a key recommendation from the Independent Panel Report to the Review of Post-18 Education and Funding, led by Sir Philip Augar. It was also endorsed by the Economic Affairs Committee of your Lordships' House. We want to ensure that the lifelong loan entitlement provides value for money to students, the education sector and the taxpayer. I am afraid this amendment is at odds with these aims. As such, I hope that the noble Lord, Lord Storey—sorry, I meant the noble Lord, Lord Addington—will feel able to withdraw this amendment.