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| Version 8 | Version 9 |
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| Grants cut over funding blunder | Grants cut over funding blunder |
| (9 minutes later) | |
| Financial support for future students is to be cut after the Department for Innovation, Universities and Skills discovered a £200m funding shortfall. | Financial support for future students is to be cut after the Department for Innovation, Universities and Skills discovered a £200m funding shortfall. |
| This year, the department expanded financial support, expecting two thirds of students in England to be eligible for full (£2,800) or partial grants. | This year, the department expanded financial support, expecting two thirds of students in England to be eligible for full (£2,800) or partial grants. |
| But Universities Secretary John Denham said many more students were eligible. | But Universities Secretary John Denham said many more students were eligible. |
| The U-turn means the upper limit to receive grants will now be reduced from a family income of £60,000 to £50,020. | The U-turn means the upper limit to receive grants will now be reduced from a family income of £60,000 to £50,020. |
| Speaking to MPs on the Innovation, Universities, Science and Skills Committee on Wednesday, Mr Denham admitted the government had underestimated the numbers of students eligible for financial support. | Speaking to MPs on the Innovation, Universities, Science and Skills Committee on Wednesday, Mr Denham admitted the government had underestimated the numbers of students eligible for financial support. |
| Ministers got their sums completely wrong Stephen Williams, Liberal Democrats | Ministers got their sums completely wrong Stephen Williams, Liberal Democrats |
| The department had expected a third of students to qualify for the full grant - in fact 40% qualified. | The department had expected a third of students to qualify for the full grant - in fact 40% qualified. |
| Mr Denham told MPs it had been difficult for his department to predict "with absolute precision" the number of people within the system, because it had to use data available when the grants were increased last year. | Mr Denham told MPs it had been difficult for his department to predict "with absolute precision" the number of people within the system, because it had to use data available when the grants were increased last year. |
| "You are only going to be 100% if you have been running the system for some time," he said. | "You are only going to be 100% if you have been running the system for some time," he said. |
| Departmental savings | Departmental savings |
| Thousands of better-off students planning to go to university next year (2009-10) will now not receive partial grants of between £500 and £50 a year - money they would have received had they started university this autumn. | Thousands of better-off students planning to go to university next year (2009-10) will now not receive partial grants of between £500 and £50 a year - money they would have received had they started university this autumn. |
| The department estimates 10% of students - 35,000 to 40,000 - will be affected. | The department estimates 10% of students - 35,000 to 40,000 - will be affected. |
| Mr Denham said the move would help recover £100m of the shortfall, while the remaining £100m will be recovered from departmental savings. | Mr Denham said the move would help recover £100m of the shortfall, while the remaining £100m will be recovered from departmental savings. |
| He said the new student support arrangements would only apply to new students starting in higher education in the next academic year. | He said the new student support arrangements would only apply to new students starting in higher education in the next academic year. |
| Mr Denham stressed that students from poorer backgrounds would still get their full grants, which is available to students whose family income is £25,000 or below. | |
| Existing students would receive the same support as they were entitled when they started at university, he added. | Existing students would receive the same support as they were entitled when they started at university, he added. |
| 'Heavy blow' | 'Heavy blow' |
| Shadow Universities Secretary David Willetts said: "From next year, first years, second years and third years at university will all be on different maintenance grant regimes. | Shadow Universities Secretary David Willetts said: "From next year, first years, second years and third years at university will all be on different maintenance grant regimes. |
| "This is a heavy blow for students, 65,000 of whom have already applied. | "This is a heavy blow for students, 65,000 of whom have already applied. |
| "We understand the need for financial discipline in tough times, but where is the strategy?" | "We understand the need for financial discipline in tough times, but where is the strategy?" |
| Liberal Democrat University spokesman Stephen Williams said: "Ministers got their sums completely wrong. | Liberal Democrat University spokesman Stephen Williams said: "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 with their studies. | "This kind of incompetence is not going to persuade young people that the government is committed to supporting them with their studies. |
| "As we enter a recession, ministers are going to have to face-up to the fact that more students are going to be expecting to receive maintenance support in the years to come." | "As we enter a recession, ministers are going to have to face-up to the fact that more students are going to be expecting to receive maintenance support in the years to come." |