Alexandra Frean, Education Editor
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A £165 million package of student support due to be introduced in September will disproportionately benefit undergraduates from middle-class families while providing only minimal support for the poor, the Conservatives claim.
The means-tested student maintenance grant, which covers living costs but not fees, will be available to students whose parents earn up to £60,000. Previously the cap was £39,305. Families on £25,000, up from the previous threshold of £18,360, will receive the full grant of £2,835.
The reforms, designed to attract more working-class students into higher education, should mean an extra 100,000 will have help to pay their way through university. But a new analysis of government data by David Willetts, the Shadow Universities Secretary, has found that 90 per cent of the extra spending will initially go to families in higher socioeconomic groups.
“Students from the most affluent families gain £150 million, while those from poorer families gain only £15 million,” Mr Willetts said. The finding could embarrass the Government, still reeling from the fallout generated by its abolition of the 10p tax band.
“There’s a flavour of the 10p tax band here,” Mr Willetts said. “Ministers have given up on spreading opportunity to people from the poorest backgrounds. It’s striking how little of the extra money is going to poorer families, yet everybody recognises that this is the group where the access problem is worse. This is an analysis that the Government should have done itself before it launched the policy.”
It was hard to see how the new system would promote the Government’s aim of broader access to higher education when the extra spending was focused almost entirely on students from families on above-average incomes, he added. “Ministers claimed that their new maintenance grants scheme would broaden access to university. But this new evidence shows it won’t.”
The reformed grant system is designed to widen access to university for people from poorer backgrounds and help the Government to achieve its target of 50 per cent of young people going to university. But this target is unlikely to be met for decades. Despite efforts by vice-chancellors to attract more working-class students, the proportion of 18 to 30-year-olds at university last year was 39.8 per cent, narrowly up on the 39.2 per cent figure of 1999.
New data on household income by socioeconomic group and on university applications for 2008-09 show that the additional spending on the student grant will be focused almost entirely on households with above-average incomes. The new grants system will provide £165 million of new funding in maintenance grants this year.
Of this £150 million will go to families in socioeconomic groups 1 to 3, the managerial and professional classes, and £15 million will go to socioeconomic groups 4 to 7, Mr Willetts said.
John Denham, who as the Universities Secretary introduced the reforms, said that Mr Willetts’ analysis was “spurious” because what mattered was parental income, not socioeconomic group. He added that the least well-off students would each get the most financial support, but defended the decision to give more to students with higher family incomes.
He added: “It is absolutely right that we support those hardworking families, often where both parents are working on modest incomes, who are encouraging their children to go to university.
“We know it can be tough for them. That’s why we are providing more support than ever before.”
Taken for granted
— Students who entered higher education after 2005 can apply for either a maintenance or special support grant of up to £2,835
— A maintenance grant is paid in place of a student loan for maintenance. A special support grant is paid on top of the loan
— Those who qualify for a special support grant include single parents or two parents who are students, the disabled and students aged 60 and above
— All eligible, full-time students in higher education can take out a student loan for tuition fees of up to £3,145 in 2008-09
— Depending on income, students can also take out a student loan for maintenance of up to £6,475
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The cap of £40K is still in place for students that started in 2007, so my step son only gets a 75% loan but if he started this year he would get 100% and a grant! Why leave the old cap in place?
Richard, Redruth,
''Should not be damned because of [parental income] over which the student has no control and have no access''
YES! May I also point out: 1. The additional grants for those with parents on >30k are paltry! e.g. parent on 40k, child gets about 500 grant. That might cover some books and train home.
RB, Hants,
2. Those with better off parents DO NOT ''gain more'' since the poorer ones already get more in terms of grants and loan, far outstripping those from better off families.
3. So, a parent earns 60k? Does this mean the child will be supported in any way at uni? NO - depends on the parent!
RB, Hants,
4. The figures at the end of the article are misleading to say the least. These grants are usually only available to those from low income families or under special cirumstances. Students by and large do not get so much help!
RB, Hants,
Maintenance loan of up to 6475? Maybe if your family income is v low and you study in London, otherwise the figure is well under that!
e.g. the max loan I could poss get is 3000 odd. Halls are 4339...right, so how does that work exactly? The payment is due before uni so not much chance of a job!
RB, Hants,
Only 50%? I had heard that the target a few years ago, was more like 80% of the population going to university. Either way, the figure is ludicrous unless the courses are worthwhile and many uni courses have replaced tried, traditional aprrenticeships; with increasing financial burden to fund them
Laura, Woking,
I come from a middle class family with 3 kids,state educated.The loan application form for uni asked only about how much my parents earn,not how much they have had to spend on medical treatment for my sister,not covered by the nhs.What about the £300 bus passes each for my siblings?Disgraceful
wiltshire wurzel, swindon,
Do families earning £60k really need help with their children's Uni costs? Better solution: teach budgeting skills at school, then students might drink somewhat less of their cash!
The 50% at Uni target seems highly arbitrary - Uni isn't right for everyone, though all should have the option.
Sam, N Wales,
Poor background students are forced to work most days. Most have to give up their studies, or struggled to obtain a grade with debts for decades. Whose are the one who managed to go that far.
The ones earning £60000 & struggling should reconsider their lifestyle. About 6y of my earnings.
lauren, London, uk
I get the impression that Brown, Balls, Darling and Denham are more than a few degrees short of a qualification. How on earth will this measure, raising the student maintenance grant to £60,000, help the children of those in poorly paid jobs and low incomes? It is just another own goal, surely?
Kenneth Armitage, Suffolk, England
So people who pay more are actually given something in return? How terrible!
John Scott, London,
Most of these richer students will put the grant/loan money into a higher interest saving account and leave it there collecting interest so that once they graduate they leave with no debt and a little bit of profit. The poor need to use their money as well as that from working just to survive.
C Hunt, Glasgow,
I have to say as a true committed Conservative, my good lady who is a ft mature student living on campus doing a degree, is near the end of her 2nd year, and we have not taken out a student loan, and paid our uni bills.. She will leave college next year without a penny of debt.. few are so lucky..
Gaz, carlisle,
This scheme isnt going to work at all. When I come out of university I will be in around £24,000 worth of debt. I am training to be a teacher-theres no other way around that debt. Give all the money to the universities to improve and abolish students fees. Poor dont have to pay. Everything solved.
Jenny, Leeds,
University students are usually legally adult and should be treated as individual adults. They should not be damned because of the income of their parents over which the student has no control and to which they may have no access. Penalising students re parents' income is guilt by association.
SMITH, Kent,
Insulting? You have missed the point. Two students at college, one with low income parents and the other with higher income parents having differing state help is discrimiantion. They both go through the same system, study at the college and fight for same jobs, so should have same benifits/rights.
Eric, milton keynes,
Laura. As a parent, yes I earn slightly more than someone on benefits, but pay more taxes. Believe me, I have hardly any disposalble income left at the end of the month, but you suggest that I should contribute more? That's a stealth tax and not fair on me/my children. Where am I to find the money?
Eric, milton keynes,
This government wants to enslave the poor. £60000/y = £5000/month. Hard working or not, that sounds plenty and they probably own properties. While the ones on benefit usually lives in temporary accommodation, have no asset, and receive about £350/m, most of which just about pays the bills. Insulting
lauren, London, uk