The Government has announced that maintenance grants for some students from low-income households will be reintroduced. On the surface, it's a huge win for students, but it comes with a worrying catch - more on that below. We've been campaigning for the reintroduction of maintenance grants for many years alongside the National Union of Students and other Russell Group Students' Unions. This is a real indication of what is possible when students unite around issues that matter to students. Now it's all about implementation.
I was at the Labour Party Conference earlier this week with Sarah (our Education Officer) to hear the Government announcement of financial support for students from low-income households studying "priority" courses. We're waiting to hear about the full details, including eligibility and grant amounts, that will be announced by the Chancellor of the Exchequer (UK Finance Minister) in the Autumn Budget on 26 November.
There is a catch
It's widely expected that the Government will fund the grants through a new charge on universities’ international student fee income. Analysis suggests that this will be around six per cent, and we are very concerned about the potential financial hit to universities, or worse, the increased cost to students when they are already struggling.
The Higher Education Policy Institute has calculated that the cost of this to UCL would be around £42 million per year, which the university would have to absorb or pass on to students.
We raised these concerns with Baroness Smith of Malvern, Skills Minister and also raised our concerns with Helen Hayes MP (Chair of the Education Select Committee) and Sarah Smith MP (Labour Party Opportunity Mission Champion) at the Conference.
Where we stand
Whilst we welcome the return of maintenance grants and the improved access and support for students from low-income backgrounds, we are completely against the suggested funding model. Funding grants through an international student levy could be hugely counterproductive. It risks placing universities under greater financial strain when many are already in deficit and having to cut costs. It could also unfairly increase the costs faced by future international students, something that will be hugely damaging to our community at UCL. Initial sector analysis suggests that the financial impact could reduce the number of places available for domestic students.
What we're doing next
We're working with other students’ unions and sector partners to push for a sustainable funding model that restores maintenance grants without undermining university finances or international student access. We want to make sure maintenance grants are brought back in a way that is effective and fair to all students and universities. We'll update you when the Government sets out the details of these proposals in November.
If you have thoughts you want us to feed into our discussions with Government, please get in touch with me on [email protected]