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Universities minister David Lammy says move is a reaction to tough economic climate
By Polly Curtis~London Guardian
The government today announced that it is freezing student grants and loans and cutting financial support for trainee teachers, and increasing tuition fees.
Grants for poorer students and universal maintenance loans will be frozen for the first time since the system was introduced, while fees will increase by 2.04% to £3,290 a year. The loans for living costs will stay the same, but those given to cover fees will increase to meet the rise in charges.
Teacher training grants for postgraduates, which had been universally offered, are to be restricted to people from lower income homes. Those with household incomes above £34,000 will pay for the majority of the cost of their course through loans instead of grants, adding to the debt mountain for some new graduates.
The surprise announcement is a strong sign of increasing pressures on the public purse. It is understood the move is designed to free up cash to avoid a cut in the grant as student numbers increase.
The universities minister, David Lammy, said in a written ministerial statement to parliament: “In these difficult economic times, we are continuing to take difficult decisions in the interests of students, universities and taxpayers alike.
