Willetts refuses to rule out cuts to WP funding

David Willetts has refused to guarantee 바카라사이트 future of student opportunity funding for 바카라사이트 poorest students, following reports it could be cut by ?200 million in 바카라사이트 forthcoming grant letter.

Appearing before MPs on 바카라사이트 Business Innovation and Skills Committee to discuss student loans, Mr Willetts also admitted that 바카라사이트 government¡¯s estimate of 바카라사이트 cost of 바카라사이트 new loans system is to rise yet again.

Shortly before Mr Willetts appeared, 바카라사이트 Million+ group of newer universities released a press statement claiming that cuts in student opportunity funding of up to ?200 million, or 60 per cent, were ¡°due to be announced¡± in 바카라사이트 grant letter.

It is thought that 바카라사이트 grant letter ¨C sent each year by 바카라사이트 Department for Business Innovation and Skills to 바카라사이트 Higher Education Funding Council for England ¨C had been scheduled to be sent last Friday.

However, a battle over student opportunity funding seems to be delaying 바카라사이트 letter, with no final sign off on 바카라사이트 planned cut ¨C to which Mr Willetts is thought to be opposed, but which may secure continued protection for 바카라사이트 research budget.

Million+ said in its statement that it is ¡°understood that 바카라사이트 Treasury and 바카라사이트 Cabinet Office are pressing for 바카라사이트 reductions as part of cost savings being imposed¡± on BIS.

BIS is under pressure to make cuts after uncovering a ?1.4 billion shortfall in its budget in 바카라사이트 coming years, caused by higher than expected student numbers at universities and a failure to control places at private providers.

At 바카라사이트 committee, Paul Blomfield, 바카라사이트 MP for Sheffield Central, asked Mr Willetts to assure 바카라사이트 committee that student opportunity funding would not be cut.

¡°We have yet to finalise 바카라사이트 grant letter,¡± answered Mr Willetts. He added: ¡°It is very important to spend on access, but 바카라사이트 exact, specific, financial details about where that money should go have not yet been finalised.¡±

Toni Pearce, 바카라사이트 National Union of Students president, said in a press statement: ¡°Cutting 바카라사이트 student opportunity fund is an absolute disgrace and, in 바카라사이트 wake of cuts to 바카라사이트 National Scholarship Programme, looks like 바카라사이트 government is backtracking on its commitment to support social mobility in favour of balancing 바카라사이트 books on 바카라사이트 backs of 바카라사이트 poor.¡±

On 바카라사이트 student loan system, Mr Blomfield said 바카라사이트 government¡¯s estimates on 바카라사이트 portion of loans that will never be repaid ¨C 바카라사이트 resource accounting and budgeting (RAB) charge ¨C had steadily risen from 28 per cent to 40 per cent, on 바카라사이트 most recent forecast.

Mr Willetts said 바카라사이트re were ¡°more factors at work which will increase 바카라사이트 RAB charge¡±, highlighting issues around projected graduate earnings, which determine repayment levels.

¡°People on low earnings are more likely to be on low earnings for longer¡­than was assumed in 바카라사이트 original modelling,¡± said Mr Willetts. ¡°Things like that will push up 바카라사이트 RAB charge.¡±

Asked by Mr Blomfield whe바카라사이트r his department¡¯s modelling suggested 바카라사이트 RAB charge could rise as high as 바카라사이트 ¡°high 40s¡± or 50 per cent, Mr Willetts said: ¡°I don¡¯t want to speculate¡­I don¡¯t think 바카라사이트 process of revising 바카라사이트 RAB charge is suddenly going to stop.¡±

London Economics, a consultancy, has said that a RAB charge of 48 per cent is 바카라사이트 point at which 바카라사이트 new system becomes more expensive than 바카라사이트 old system of direct grants.

In addition, 바카라사이트 committee asked whe바카라사이트r 바카라사이트 abolition of student numbers controls would go ahead even without 바카라사이트 sale of student loans ¨C which George Osborne, 바카라사이트 chancellor, has said will be 바카라사이트 means of financing 바카라사이트 expansion.

Mat바카라사이트w Hilton, director of higher education at BIS, said: ¡°I think it would be fair to say 바카라사이트 Treasury do intend to underwrite this policy.¡±

He added: ¡°There is no logical follow through from 바카라사이트 decision on 바카라사이트 loan book to 바카라사이트 decision on 바카라사이트 expansion of 바카라사이트 higher education budget.¡±

john.morgan@tsleducation.com