Unions and opposition parties warn measures will harm poorer students

Student grants and loans will be frozen this year despite a rise in tuition fees, the government announced yesterday.

The moves were criticised by universities, student leaders and opposition parties who warned that they would deter poor pupils from applying and would burden graduates with more debt.

Fees will rise by 2.04 per cent to £3,290 a year, an increase of nearly £300 since the fees were introduced in 2006.

Maintenance grants will be frozen at £2,906 and loans for living costs are also frozen, although loans to cover tuition fees will rise to cover the higher fees.

Wes Streeting, the president of the National Union of Students, said: “Students are already racking up thousands of pounds of debt. It appears that the inflation rate is being applied where it suits universities, but not where it will improve student support. These real-terms cuts in student support will be felt in students' pockets.”

But David Lammy, the universities minister, argued that “difficult economic times” meant student support could not currently be increased.

“In these difficult economic times, we are continuing to take difficult decisions in the interests of students, universities and taxpayers alike. We have therefore decided to maintain the current package of maintenance support for full-time students, reflecting the current low inflationary environment,” he said in a statement to parliament.

David Willetts, the shadow universities secretary, warned that the measures would harm the poorest students the most.

He said: “In his first week as Prime Minister Gordon Brown said there would be an extra increase in financial support for students, but he has run out of money and has been cutting back support for students ever since. It’s poorer students in particular who will be hit by these reductions. This is why we need toget on with the long-promised student finance review to do more to help students from poorer backgrounds.”

The announcement came as new statistics revealed that the proportion of students from poorer families had increased. 21 per cent of 18-to-21 year olds studying last year were from the poorest four socio-economic groups, an increase of 3 per cent on the previous year.

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