Bring back student grants, say universities

Chancellors warn that scholars may quit over rising cost of living unless Government steps in

VICE-CHANCELLORS have urged the new prime minister to bring back student maintenance grants, warning that many will abandon their degree courses without help during the energy crisis.

University leaders have warned that unless “immediate action” is taken to assist students with the cost of living, they may decide that they can no longer afford to study for a degree.

Prof Steve West, president of Universities UK and vice-chancellor of the University of the West of England, said ministers “must step forward” with extra cash.

“With inflation reaching record highs and energy bills soaring, [students] need extra support right now, before they decide their living costs are so high that they can’t afford to continue with their studies,” he said.

He added that “it’s time to bring back the maintenance grant and make sure it keeps pace with inflation”. David Cameron scrapped the payment in 2015 and replaced it with increased maintenance loans.

At the time, the decision was attacked by the National Union of Students, which said in 2016 the change would leave students with a “lifetime of debt”.

The grants were worth around £3,500 and were means-tested based on parental income. Prof West said: “We need immediate action from the new Cabinet to help students through the difficult winter ahead.”

Analysis by Universities UK, a body representing 140 campus bosses across Britain, has found most current support measures will not help the majority of students as they are predominantly targeted towards people on means-tested benefits, pensioners and families.

Two thirds of students are concerned about living costs this autumn, according to polling by Savanta Comres, rising to 85 per cent of students over 30. Of those, 55 per cent said this could prevent them continuing to study, including eight in 10 postgraduate students.

The Bank of England has warned that the UK will tip into recession this year, with inflation already having reached 10.1 per cent.

Universities UK said the freeze on £9,250 annual tuition fees in England means they are “already operating with a severely stretched funding base”, limiting how much assistance they can offer students. Overseas students, who account for a fifth of places at the leading Russell Group universities this year, pay far higher fees – often in excess of £20,000.

The poll of 1,050 students currently in higher education, which was carried out in July, saw three quarters agree that the cost of living is negatively affecting their mental health. Utilities and energy bills were cited as their chief concern, with 64 per cent worried about those costs, followed by rent, accommodation or food, while half reported they would go out less with friends and family this autumn.

Students’ living costs will be further compounded after energy contracts were changed days before the start of the new term.

Thousands of students were scrambling to cover soaring energy costs after some of their accommodation providers reneged on fixed-price deals.

Unihomes, a company providing fixed-price, bills-included contracts for student accommodation, has emailed students to say their utility bills will rise in October after the energy price cap rise, despite bills being advertised as fixed for the duration of their contracts.

Joe Brindle, 20, is starting his second year in Sheffield and has been told his fixed-price contract with Unihomes will rise next month. He said: “We’re pretty sure that legally they are covered by their terms and conditions, but these contracts were horrendously mis-marketed. They are taking advantage of students who just wanted some certainty.”

Phil Greaves, of Unihomes, said: “Students are among the hardest hit from the cost of living crisis and we are sorry that we have added to the stress some are facing. The rising cost of energy is hitting everyone and, as a last resort, we have unfortunately had to pass on some of the costs to our customers. We do not benefit at all from this and have absorbed some of the previous price rises on behalf of customers.”