NUS update for Member Unions
NUS update: Government announces changes to student support, following NUS pressure
Secretary of State for Innovation, Universities and Skills John Denham today made a statement to MPs outlining four key proposals for higher education.
The Government’s plans include increasing the number of students eligible to receive maintenance grants, offering some guaranteed maintenance funding for recipients of the educational maintenance allowance (EMA), expanding the Student Associate Scheme and allowing optional loan repayment breaks of up to five years for graduates. These proposals will take effect for students entering higher education in 2008.
1. Maintenance Grants
The Government will increase the number of students eligible to receive maintenance grants entitlements for students from lower income backgrounds.
· Students from families with incomes of up to £25,000 will be entitled to full grants. At present only students from households with incomes of up to £17,500 are entitled to full grants. Once the system is fully up and running 50,000 more students each year will receive full grants
· Students whose families have household incomes of up to £60,000 a year will be eligible for a partial grant in future. Once fully implemented it is estimated that more than 100,000 extra students at any one time will be entitled to a partial grant
· As a result of these reforms, a third of students will get a full grant compared to 29% today. A further third of students will get a partial grant compared to 22% today
· The proportion of students receiving maintenance grants will therefore rise from just over half who entered higher education in 2006 to two thirds of students from 2008.
2. Higher Education Study Support Guarantee
From academic year 2008/09 all 16 year olds who qualify for the Education Maintenance Allowance (EMA) will be offered a clear guarantee of the minimum level of maintenance grant and loan they will receive if they go to university or college.
3. Student Associate Scheme
A new emphasis will be placed on students acting as role models and mentors for people who might not go on to higher education. The Student Associate Scheme involves high achieving students helping out as mentors and assistants in classrooms for 15 days a year, acting as role models for young people who might not otherwise go on to higher education. The number of places on the scheme will be doubled from 7,500 today to 15,000.
4. Choice over Student Loan Repayments
Graduates will have the option of taking a break from their loan repayments of up to five years (they will have choice over how long that break is - it could be one year, two year, or longer - for up to five years, depending on their circumstances). Students starting in 2008 will have this option once they complete their degree.
NUS President Gemma Tumelty appeared on BBC News, BBC News 24, ITN, IRN and Radio 5 Live to comment on the Government’s announcements.
In a press release, she said:
“NUS has consistently raised the issue of student debt and student hardship and the negative impact this has on students access and graduates. We are very pleased that the new Government has listened to our concerns and announced significant improvements to student support. Students who have chosen to access HE and enrich our economy should be offered support and flexibility over their finances.
“It is absolutely right that very poor students and students from modest and middle income families feel confident in adequate financial support from the state and we are encouraged that thousands more students will be eligible for support and that thousands who struggle on the current package will be given access to a funding boost.
“We hope that this improves widening participation among disadvantaged students, and also that students will feel less pressured to work long hours in low paid jobs, to the detriment of their studies.
“Even with these improvements, students and their families will still contribute significant amounts to their education and graduates will face tough choices, over investing, starting families and their career paths, due to high levels of debt- and this still needs to addressed.
“The Government has taken a major step in the right direction- and we look forward to further engagement with DIUS, particularly in the run up to the 2009 review."
Government's Statement
Secretary of State for Innovation, Universities and Skills John Denham told MPs that the establishment of the new Department for Innovation, Universities and Skills (DIUS) was aimed at providing a strong and integrated voice across Government regarding the education and skills.
Mr Denham said that it was not satisfactory that only 28% of UK graduates currently came from low-income backgrounds, describing it as a "waste of talent". He concluded that the reforms would allow the UK to meet growing aspirations regarding education and careers, offering opportunity and support for students and promoting UK universities.
Conservative Shadow Secretary of State for Innovation, Universities and Skills David Willetts suggested that the splitting of the Department for Education would make it harder to increase access to universities.
Mr Willetts welcomed new measures designed to increase access, but said that that the fundamental challenge was to examine the situation in schools and increase access to GCSEs. This would increase the prospects of people reaching university, he argued.
The Conservative spokesperson also asked whether any of the new provisions would make it easier for part time students at universities, and who would be responsible for delivering the announced measures. It was a 'pity' that there were now two education departments, he asserted.
He went on to ask whether the money allocated to the proposals had already been announced by the Chancellor and for more detail on the bursary scheme and whether there would be any changes.
Secretary of State for Innovation, Universities and Skills John Denham said that it seemed that Mr Willetts did not have much to say on the package. He pointed out that the Government had introduced a system for student support and access to learning funds for part time students, in contrast to the situation under the previous government. Co-funding courses were being built up with industry and would deliver the high quality vocational skills that were needed, he said.
On the splitting up of the department, Mr Denham said that there was a compelling case for having a department that was able to look at children and family issues in a coherent way. Finally, Mr Denham said that there were no plans to change the bursary scheme.
Liberal Democrat Shadow Innovation, Universities and Skills Secretary Sarah Teather asked for clarification that the announcement of new funding would not prelude the lifting of any cap. She went on to note the poor income of many part-time and mature students, asking if there were plans to stagger the payment of tuition fees, before asking how the proposals were to be funded and calling for no further cuts to be made in other areas of education provision.
Mr Denham claimed that he had had considerable report from the Prime Minister regarding new funding measures, promising that it did not act as a prelude. He went on to state that there were no plans for a national bursary scheme, before claiming that the announcement made today did not put in jeopardy any measures that had previously been announced by the department.
If you would like any further information on the Government's plans or to ask any questions, please contact us using the details below.
For further information contact the Public Affairs Unit on public.affairs@nus.org.uk or on 02073806654
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