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Funding for student grants 'to be cut'

30 Oct 2008

Funding for student grants 'to be cut' Employment 4 Students - Number 1 for Graduate IT jobs.

Funding for student grants has been cut by the Department for Innovation, Universities and Skills (DIUS) to help plug a £200 million hole in its budget, it has been reported.

Liberal Democrat university spokesman Stephen Williams told the BBC: "Ministers got their sums completely wrong."

"This kind of incompetence is not going to persuade young people that the government is committed to supporting them," he added.

He claimed that as the country enters a recession more students are going to expect government support in the form of grants, the news provider states.

Last year, the DIUS said two-thirds of students in England could be eligible for full or partial grants worth up to £2,800 this year.

However universities secretary John Denham has subsequently admitted the government underestimated the numbers eligible and now expects 40 per cent to qualify for support.

Mr Denham said that students from poorer backgrounds with families that earn less than £25,000 a year would still get the full amount.

In related news, the National Student Forum, which was set up by the government, has recommended offering student loans that cover the full cost of living, reports the Times.

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