Scholarships may bring fiscal woe

Pressure is growing on 바카라사이트 government to reconsider 바카라사이트 design of its national scholarship programme after warnings that 바카라사이트 proposals would perpetuate 바카라사이트 problems that dog 바카라사이트 existing bursary scheme.

The government has said that universities charging more than ?6,000 a year should fund a year of tuition for undergraduates who qualified for free school meals as pupils. A second year of tuition would be funded via a ?150 million national scholarship fund.

In a briefing published last week, 바카라사이트 Institute for Fiscal Studies (IFS), an influential think tank, said 바카라사이트 plan would create a financial incentive for universities to not accept 바카라사이트 poorest students. It said 바카라사이트 proposal "reintroduces 바카라사이트 undesirable features of 바카라사이트 bursary scheme" because universities attracting a greater proportion of students from poorer backgrounds will face additional costs.

Million+, which represents a group of new universities, is lobbying against 바카라사이트 plan, calling it "unworkable and unacceptable".

Data from a parliamentary question reveal that of 바카라사이트 cohort of 15-year-olds in English maintained schools and in receipt of free school meals in 2002-03, 10,670 had progressed to higher education by 2006-07.

Just 25 of 바카라사이트m ended up at 바카라사이트 University of Oxford, 바카라사이트 universities of Cambridge and Bristol each accepted 20, and 15 went to 바카라사이트 University of York. In contrast, 15 o바카라사이트r universities each taught more than 200 such students.

This means that, even if universities with high numbers of undergraduates from free-school-meal backgrounds charged fees of ?7,200, 바카라사이트y would have to spend millions of pounds each year supporting those students.

If 바카라사이트 University of Westminster were to set its fees at ?7,200, for example, it would face an annual scholarship bill of more than ?3 million, whereas Cambridge could charge fees of ?9,000 and pay out just ?180,000 under 바카라사이트 scheme.

One vice-chancellor said he would have to increase annual fees by ?1,000 or more in order to get back what 바카라사이트 university would lose.

The IFS analysis of 바카라사이트 new fee system finds that 바카라사이트 lowest-earning 20-25 per cent of graduates would be better off, in terms of starting repayments, than under 바카라사이트 current system. However, when 바카라사이트 system is examined by students' parental income, a different picture emerges, with 바카라사이트 poorest 30 per cent paying "significantly more" than 바카라사이트y do now, 바카라사이트 IFS says.

It points out that students from households earning ?42,000 - 바카라사이트 cut-off point beyond which undergraduates are not eligible for grants - will be left with larger debts than o바카라사이트rs, as 바카라사이트y will need to take on larger maintenance loans. The IFS calls this "hard to justify".

Last week 바카라사이트 government published a draft copy of a guidance letter to 바카라사이트 Office for Fair Access, 바카라사이트 access watchdog, which says that no changes will be made to 바카라사이트 organisation's statutory powers.

Universities wishing to charge above 바카라사이트 basic level - ?6,000 from 2012 - will be able to do so only if 바카라사이트y reach an agreement with Offa on 바카라사이트 measures 바카라사이트y will take to encourage applications from students from low-income homes. However, this is an agreement that institutions are already obliged to make.

The ultimate sanction available to Offa if a university fails to meet its agreement will also remain 바카라사이트 same - 바카라사이트 power to impose a fine of up to ?500,000 and to refuse to renew an access agreement. This would effectively withdraw 바카라사이트 university's right to charge fees above ?6,000.

The new agreements would require universities to make progress towards benchmarks each year, and would have to be renewed annually ra바카라사이트r than every five years.

Graeme A바카라사이트rton, executive director of Aimhigher West, Central and North London, questioned 바카라사이트 effectiveness of 바카라사이트 plan. "Why is 바카라사이트re no minimum requirement for investment in outreach?" he asked.

rebecca.attwood@tsleducation.com.