Written question asked by David Laws (Liberal Democrat) on Wednesday, 24 March 2010, in the House of Commons. It was due for an answer on Monday, 29 March 2010. It was answered by David Lammy (Labour) on Tuesday, 30 March 2010 on behalf of the Department for Business, Innovation and Skills.

Career Development Loans

Question: To ask the Minister of State, Department for Business, Innovation and Skills what the (a) cash cost and (b) resource cost is of career development loans in England for (i) 2009-10 and (ii) 2010-11.

Answer: On 1 July 2009, Government began an enhanced version of Career Development Loans (CDLs) called Professional and Career Development Loans (PCDLs). For 2009-10, the cost of administering these programmes across the UK is expected to be £21.8 million. In 2010-11, as more loans are delivered, the programme is expected to cost around £30 million. England accounts for around 90 per cent. of the PCDL market.These programme costs cover: interest payments made by Government to support the individual while in learning; liability as a result of defaulted repayments; administration costs associated with the devolved administrations and of small-value loans; and marketing.Final costs are also dependent on a number of other factors, including the Bank of England base rate and the level of take-up of loans offered.

Secondary information