Scottish government increases funding for students

Two-thirds of students in Scotland are set to receive more funding from the government in the next academic year, in a move announced last week.

The SNP Government announced that a £30 million package, set aside to improve student funding during the recession, will go towards raising the maximum limit of the means-tested student loan, as well as providing new grants and loans for independent students and those with dependents.

Fiona Hyslop, the Cabinet Secretary for education, announced on 7 October that the funding was aimed at reducing, “the pressures on students during the current economic climate, including the fact that it is now more difficult for them to find part-time work.”

It is claimed that up to 75,000 students, or 68 per cent of Scotland’s student population, will benefit from the changes.

However, the move has been criticised as inadequate by Margaret Smith, the Liberal Democrats' education spokesperson, who claimed that the new funding still fails to meet adequate standards.

From September 2010, Scottish students will be able to borrow up to £4,952, an increase of £442, closing the gap with students in England.

In addition, an extra £2 million will go to students responsible for childcare and a new grant will be set up for around 14,000 students who receive no parental funding. The government also plans to increase grants for 40,000 of the poorest students in the country.

Liam Burns, president of the National Union of Students Scotland, welcomed the move, saying he was “extremely pleased” with the changes but warned that the proposals may be insufficient.

“The £30 million made available by the government was never going to be enough to address the issues facing hard-up students in Scotland”, he claimed, pledging to work with the government to make sure the funds reach those most in need.

The announcement comes after an NUS report, 'Overstretched and Overdrawn’, claimed that more than half of Scottish students are resorting to high-cost commercial debt, such as credit cards, while over two thirds are regularly working over the recommended ten hours a week.

The same fraction of students also reported themselves as being in debt to friends or family, while half said they had to work part-time to make ends meet.

Several senior politicians have criticised the announcement. Conservative education spokesperson Murdo Fraser accused the government of a u-turn, while Ms Smith claimed that the proposals “fall far short” of her party’s target of a minimum-income guarantee of £7,000 for all students.

Similar sentiments were expressed by Claire Baker MSP, Labour's shadow Education Minister, who said there was still a disparity between funding received by Scottish students and those in the rest of the UK.

Ms Baker said, "The options put foward still means that a student in receipt of a full Young Person's Bursary still gets £1200 less than in the rest of the UK. That is unacceptable."

The announcement comes as up to 175,000 students around the UK continue to await student loans and grants.