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Sale of Student Loans Bill

moved Amendment No. 1: 1: Clause 2, page 3, line 4, at end insert— ““(5A) In subsection (5) the reference to loan regulations includes a reference to regulations under section 186 of the Education Act 2002.”” The noble Baroness said: My Lords, this group of amendments completes the drafting of provisions relating to the possible future change to terms and conditions and to loans. As I stated on Report, the drafting of two amendments accepted into the Bill at that stage required an addition. The power to give undertakings in Clause 2(5) as currently worded encompasses only undertakings about loan regulations as defined in the Bill. However, just as Clause 2(4) enables compensation arrangements about both loan regulations and Section 186 regulations, so we need also to enable the Secretary of State to give undertakings about the power to make or amend regulations under Section 186 of the Education Act 2002. Without this power, the Government could give undertakings not to amend various repayment terms and conditions but would not be able to guarantee that they would not cancel the loan outright—a power included in Section 186. Amendment No. 1 would rectify this. Amendment No. 3 makes the equivalent addition to Clause 4(6). This will mean that when making or amending regulations under Section 186 of the Education Act 2002 as well as in amending loan regulations, the Secretary of State must seek to ensure that borrowers will not be in a worse position as a consequence of their loan being sold. Amendment No. 4 is consequential on Amendment No. 1. Welsh Ministers do not have the power to make or amend regulations under Section 186 so the Bill cannot give them the power to make undertakings on that subject. The amendments to the drafting in this group of amendments are important in that, were a government to be using undertakings in a sale transaction, it would be essential to cover the Section 186 regulations as well as the loan regulations. I believe I flagged this up on Report and hope the noble Baronesses opposite will understand. I beg to move.