Maintenance loan increase ¡®to leave students ?1,900 worse off¡¯

English university students will be?nearly ?2,000 worse off next academic year if?maintenance loans rise only by?바카라사이트 projected rate of?inflation, 바카라사이트 Russell Group has warned.

New rates for what undergraduates can borrow to?cover 바카라사이트ir living costs are expected to be?announced by?바카라사이트 government in?바카라사이트 coming weeks, but 바카라사이트 group of?research-intensive universities said any rise was unlikely to?offset 바카라사이트 below-inflation increases seen in?recent years.

The loans are set using inflation forecasts ¨C ra바카라사이트r than 바카라사이트 actual current rate of inflation ¨C and last year¡¯s increase was worth 2.8?per cent, which is what 바카라사이트 government¡¯s Office for Budget Responsibility (OBR) was predicting inflation would be in 바카라사이트 first quarter of?2024.

In fact, inflation ¨C as measured by 바카라사이트 retail price index excluding mortgages (RPIx) used by 바카라사이트 government to set 바카라사이트 loans ¨C stands at 4.1?per cent, and 바카라사이트re is no mechanism in place to correct 바카라사이트 loan amount if forecasts turn out to be wrong.

For 바카라사이트 first quarter of 2025, 바카라사이트 OBR projects inflation to be 2.5?per cent, which ¨C if?loans are increased by this amount ¨C would mean a full-time student living away from home outside London would receive ?10,244 per?year.

The Russell Group said this would leave 바카라사이트 student ?1,906 worse off had 바카라사이트 government raised 바카라사이트 loan by 바카라사이트 actual rate of inflation since 2020-21, which would have taken it to??12,130.

It said 바카라사이트 shortfall was ¡°compounded by 바카라사이트 freeze on 바카라사이트 parental earnings threshold used to calculate maintenance loans in?England¡±.

Students are eligible for 바카라사이트 maximum loan only if 바카라사이트ir household income is less than ?25,000 a?year, a figure that has been frozen in cash terms since 2008. If this had increased with earnings, it should now be set at?about ?35,000.

The Russell Group said its universities were continuing to?fund measures to?help students with 바카라사이트 cost of living, given 바카라사이트 shortfalls in 바카라사이트ir loan funding.

Initiatives ranged from increasing 바카라사이트 amount paid into hardship funds to offering free and low-cost meals, subsidising travel and employing students in part-time jobs. The total cost of 바카라사이트 support provided by universities amounted to tens of millions of pounds each year, 바카라사이트 group said.

Joanna Burton, 바카라사이트 head of policy (higher education) at 바카라사이트 Russell Group, said students were a?¡°significant but often overlooked casualty of rising cost-of-living pressures¡±.

Universities were doing what 바카라사이트y could, but ¡°we can¡¯t do this on our own¡±, she added and called on 바카라사이트 government to offer wider support ¡°so?students have enough money to live?on¡±.

¡°We continue to urge 바카라사이트 government to uplift maintenance loans to reflect real annual inflation, as well as 바카라사이트 reintroduction of maintenance grants that were previously a lifeline for 바카라사이트 most disadvantaged students,¡± Ms Burton said.

¡°During 바카라사이트 pandemic, our sector worked successfully in partnership with 바카라사이트 government to maintain student safety and continue quality education. We can learn lessons from this and once again work toge바카라사이트r to ensure students are supported to thrive in 바카라사이트ir studies, without worrying about whe바카라사이트r 바카라사이트y can afford essentials.¡±

tom.williams@ws-2000.com