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Call to scrap tuition fee grant Call to scrap tuition fee grant
(about 1 hour later)
Experts have called on the assembly government to scrap the tuition fee grant for Welsh students in Wales. A review team has called on the assembly government to scrap the £1,890-a year grant towards tuition fees for every Welsh students in Wales.
The Review of Higher Education in Wales fears the funding system, which will cost £61m this year, is unsustainable. Education Minister Jane Hutt will give her response later.
The review says the £1,890 grant is not the most effective option to help attract more people into universities. But the review panel fears the funding system, which will cost £61m this year, is unsustainable.
In its report, the review calls for the grant to be phased out from September 2010 with the money used to target those from lower income backgrounds. It says the money should be targeted instead at those from lower income backgrounds and calls for the phasing out of the grant from September 2010.
The review says the current system is not the most effective way of attracting more people into universities.
The tuition free grant is currently given to every Welsh student studying in Wales but the review group's report warns it could place even greater pressure on student finance budgets as more and more students take advantage of it.The tuition free grant is currently given to every Welsh student studying in Wales but the review group's report warns it could place even greater pressure on student finance budgets as more and more students take advantage of it.
Because of EU rules it is also available to non-UK students from the EU but not to those from the rest of the UK who study in Wales.Because of EU rules it is also available to non-UK students from the EU but not to those from the rest of the UK who study in Wales.
The report also wants student loans to be made more flexible and include repayment holidays, such as those offered to students who normally live in England. Welsh higher education institutions need to compete on a level playing field with the rest of Britain and the rest of the world Andrew RT Davies - Welsh ConservativesThe report also wants student loans to be made more flexible and include repayment holidays, such as those offered to students who normally live in England. Welsh higher education institutions need to compete on a level playing field with the rest of Britain and the rest of the world Andrew RT Davies - Welsh Conservatives
Under new proposals put forward in the report, those on a lower income could instead receive £5,000 in the form of an assembly learning grant.Under new proposals put forward in the report, those on a lower income could instead receive £5,000 in the form of an assembly learning grant.
The grant could be used wherever a student chose to attend university.The grant could be used wherever a student chose to attend university.
The review was commissioned by Education Minister Jane Hutt, who will give her response to its findings on Tuesday.The review was commissioned by Education Minister Jane Hutt, who will give her response to its findings on Tuesday.
"Using the tuition fee grant to encourage students who live in Wales to study in Wales creates disparities between a number of groups of students, giving an advantage to some students at the expense of others," the report says."Using the tuition fee grant to encourage students who live in Wales to study in Wales creates disparities between a number of groups of students, giving an advantage to some students at the expense of others," the report says.
Wales's fee regime was agreed as part of a cross-party deal in 2005 but next year the government is due to review the cap on how much universities can charge, currently £3,145.Wales's fee regime was agreed as part of a cross-party deal in 2005 but next year the government is due to review the cap on how much universities can charge, currently £3,145.
'Funding gap''Funding gap'
The report, parts of which were leaked to BBC last month, says the assembly government should "significantly increase" the level of a means-tested learning grant to students from low-income households.The report, parts of which were leaked to BBC last month, says the assembly government should "significantly increase" the level of a means-tested learning grant to students from low-income households.
It calls for money to be invested so an estimated "funding gap" of £61m between Wales's universities and England can be closed.It calls for money to be invested so an estimated "funding gap" of £61m between Wales's universities and England can be closed.
If ministers do want to keep bright students in Wales, they have been told to think about making universities more attractive by increasing higher education funding and offering more bursaries and scholarships.If ministers do want to keep bright students in Wales, they have been told to think about making universities more attractive by increasing higher education funding and offering more bursaries and scholarships.
"This would enhance student choice, encouraging students who live in Wales to choose to stay rather than experiencing a financial pressure to do so," the report says."This would enhance student choice, encouraging students who live in Wales to choose to stay rather than experiencing a financial pressure to do so," the report says.
Welsh Conservatives' education spokesman Andrew RT Davies said: "Welsh higher education institutions need to compete on a level playing field with the rest of Britain and the rest of the world.Welsh Conservatives' education spokesman Andrew RT Davies said: "Welsh higher education institutions need to compete on a level playing field with the rest of Britain and the rest of the world.
Welsh Lib Dem leader Mike German said: "We should continue to invest the same amount in this process until 2011, then it would be a manifesto commitment and election issue."Welsh Lib Dem leader Mike German said: "We should continue to invest the same amount in this process until 2011, then it would be a manifesto commitment and election issue."
Meanwhile, the National Union of Students (NUS) wants substantially more grant available to students from poorer backgrounds and the introduction of a national bursary scheme with a value of £6,000 for the poorest students.Meanwhile, the National Union of Students (NUS) wants substantially more grant available to students from poorer backgrounds and the introduction of a national bursary scheme with a value of £6,000 for the poorest students.