Universities on Wednesday criticised the size of a authorities enhance in help for pupil residing prices in England, calling it “disappointing” because it didn’t maintain tempo with inflation.
The Division for Schooling introduced that maintenance loans — the primary supply of presidency help for undergraduates and postgraduates — would in 2023-24 enhance by 2.8 per cent. It additionally stated it might present an extra £15mn to “ease price of residing pressures” for college students.
However specialists stated the rise in upkeep mortgage funding didn’t go far sufficient in opposition to the backdrop of excessive inflation, and would add to the difficulties of scholars already squeezed by the price of residing disaster.
Following the two.8 per cent uplift, undergraduates residing outdoors London will obtain a most upkeep mortgage of £9,978 subsequent educational yr — for these within the capital, that rises to £13,022.
They may also profit from new hardship help cash, along with £261mn already introduced by the federal government. Tuition charges will stay frozen at £9,250 for the following two years, which was beforehand introduced final spring.
Nonetheless, with the worth of products rising quick, the upkeep mortgage enhance quantities to a real-terms minimize. In November, inflation stood at 10.7 per cent after slipping again from the 41-year excessive seen in October.
The Russell Group of research-intensive universities stated that if upkeep mortgage funding had elevated with inflation since 2020-21, then subsequent yr’s annual allowance can be £11,500.
Tim Bradshaw, chief government of the Russell Group, stated it was “disappointing” that the federal government had didn’t “tackle a number of the flaws within the forecasting course of to make sure they sustain with rising prices”.
Tom Allingham, cash professional at recommendation web site Save the Scholar, stated the rise was a “devastating blow to struggling college students” that might intensify their “battle” with residing prices.
Upkeep loans are linked to inflation and partly means-tested, with these claiming the total allowance required to declare their family earnings.
Nonetheless, the rise in mortgage help is calculated primarily based on projections by the Workplace for Funds Accountability, a public physique monitoring authorities funds. For the previous two years, inflation has outstripped the OBR’s projections and the rise in upkeep loans.
The Financial institution of England estimates that inflation will stand between 5.2 and 5.9 per cent in September, when college students will obtain their loans.
Ben Waltmann, an economist on the Institute for Fiscal Research think-tank, stated the announcement meant that real-terms cuts to pupil hardship help since 2020-21 would turn out to be “baked-in”.
Although it welcomed the £15mn enhance, the Nationwide Union of College students stated the upkeep mortgage enhance was “woefully insufficient”.
“If upkeep help continues to lag behind inflation, the variety of college students in poverty is simply going to extend,” Chloe Subject, NUS vice-president, stated.
Robert Halfon, minister for increased training, stated the federal government recognised “college students proceed to face monetary challenges”.
“I urge anybody who’s nervous about their circumstances to talk to their college,” he stated.
