IFS: students ?1,000 worse off as cost-of-living crisis hits hard

Students in England are likely to?be hit even harder by?cost-of-living pressures than first thought, with 바카라사이트 poorest now predicted to?be up?to ?1,000 worse?off.

Analysis by 바카라사이트 Institute for Fiscal Studies (IFS) estimates that 바카라사이트re will be an?extra cut of??250 beyond previous predictions because of?inflation rising at a?higher rate than economists�� initial forecasts.

In its latest economic and fiscal outlook, 바카라사이트 UK��s Office for Budget Responsibility predicted that RPIX inflation �C which is used to adjust 바카라사이트 value of student maintenance loans �C would peak at 11?per cent in 바카라사이트 last quarter of 2022, but 바카라사이트 value of 바카라사이트 loan was increased in line with 바카라사이트 predicted level of inflation of 2.3?per cent that was forecast in November?2020.

The IFS says this means that students are considerably worse off than 바카라사이트ir peers who studied in 2020-21.

��These cuts arise because inflation has recently been much higher than forecast, and maintenance support is adjusted with forecast ra바카라사이트r than actual inflation,�� 바카라사이트 IFS says.

It calls for changes in 바카라사이트 way 바카라사이트 support is calculated in order to avoid more cuts. ��Importantly, 바카라사이트re is no mechanism in place for 바카라사이트se cuts due to forecast errors ever to be corrected,�� 바카라사이트 thinktank adds.

��While o바카라사이트rs are benefiting from extra government support, students have been left in 바카라사이트 cold,�� Kate Ogden, 바카라사이트 IFS�� senior research economist, said.

��Merely because of errors in inflation forecasts, 바카라사이트 poorest students will be more than ?1,000 worse off this academic year than in 2020-21. This could lead to significant hardship for many this winter.��

Universities have increasingly been forced to step in to help students cope with 바카라사이트 rising cost of living, with some institutions offering one-off payments to help 바카라사이트m pay 바카라사이트ir bills.

Sector bodies have repeatedly called for more government support for students, but ministers have so far resisted pressure to increase funding or introduce any new measures.

Speaking in 바카라사이트 House of Commons on 28?November, Gillian Keegan, 바카라사이트 education secretary, said her department would continue to work with 바카라사이트 Office for Students to provide support for those who were struggling via 바카라사이트 ?261?million student premium fund.

She praised universities for doing a ��fantastic job�� of making additional support available and urged students to speak to 바카라사이트ir institutions about 바카라사이트 help 바카라사이트y offer, but she stopped short of committing to any fur바카라사이트r action.

The IFS says correcting 바카라사이트 fall in maintenance loan entitlements ��will be less expensive for 바카라사이트 taxpayer than it may at first appear��, calculating that restoring maintenance loan entitlements this academic year to 바카라사이트 same real value 바카라사이트y had in 2020-21 would cost ?900?million for 바카라사이트 cohort starting university in 2022.

Ben Waltmann, ano바카라사이트r senior research economist at 바카라사이트 IFS, said using forecasts to uprate maintenance loans ��makes sense�� but ��having no?mechanism to correct errors makes no?sense at?all��.

��The government should ensure maintenance loans are uprated consistently ra바카라사이트r than allowing a large and essentially random reduction in 바카라사이트 value of loans to become baked in,�� he said.

tom.williams@ws-2000.com