The government could have to drastically cut student grants and freeze the number of university places available, it has been reported this week.
The move follows accusations that the government has made huge miscalculations about the costs of higher education.
The Department for Innovation, Universities and Skills has an annual budget of over £17bn, but is believed to be in debt of £100m.
It has been reported that the department was not allocated enough funding to cover the new grants scheme and that it was also unprepared for the huge rise in university applications witnessed this year.
“outrageous”
The revelations quickly sparked anger from students. Wes Streeting, the President of the National Union of Students has called the move “outrageous.”
He said, “in a serious economic downturn it’s shocking that one of the first groups to be picked on could be the poorest students in higher education. In terms of social justice this would be a complete setback.”
Previously, students had to come from families with an income of under £17,500 to receive a full grant, but the government has now raised the threshold to include students whose families earn up to £25,000.
As a result, it has been estimated than from this academic year one third of university students will be receiving full grants of £2,825.
A further third of students whose families earn up to £60,000 are now also able to claim a new partial grant on a sliding scale.
Increase in applications
This year saw an unexpected 10.5% rise in the number of students starting university, which has put massive pressure on government funding. The largest increase in applications was found among students from poorer backgrounds.
A spokesman for Oxford University commented, “the number of undergraduate students at Oxford University has remained static in recent years and there are no plans to increase undergraduate student numbers.”
This year Oxbridge applications went up by 12%, and Cambridge has raised income thresholds for bursaries.
