Poorest students offered support over university fees

The poorest 30% of students will be guaranteed at least £3,000 a year from 2006 under plans announced by the Education Secretary Charles Clarke today.

Poorer students will benefit from a maintenance grant of £1,500 a year, increased from £1,000 a year, and a fee grant of £1,200 so the poorest students don't pay the first £1,200 of their fees, Mr Clarke said. The government also said that it is considering combining the two grants to a single grant of £2,700 a year.

Under the plans, should students receive this support and the university decides to charge the maximum £3,000 in course fees, the individual will not have to take out any additional loan to pay their tuition fees. The Office for Fair Access will expect the student to receive financial support of at least £300 from the university.

Additional measures to protect all students include: increasing the student loan; abolishing upfront tuition fees from 2006; increasing the threshold for repayment from £10,000 to £15,000; and capping the variable fees universities will be allowed to charge at £3,000.

Graduates find employment in lower paid jobs will have any amount outstanding after 25 years wiped out.

However, Mr Clarke told MPs that the package of benefits was "not a pick and mix menu".

"This is a coherent package to be taken as a whole or not at all. If not supported by this House, none of these benefits will arise," he said

(gmcg)