The student finance proposals, which will see every student living in a household with an annual income under £110,000 have their tuition fees covered up to £9,250 a year, are due to be debated in the States Assembly on 10 April.

They were first put forward by the Treasury Minister in a shock Budget announcement last year, but without detail on how funding would be secured for the scheme beyond 2020.

Despite fears over the scheme’s longevity as a result of the likely shortfall of up to £2.5million a year, parents and students overwhelmingly backed the plans.

Pictured: Treasury Minister Alan Maclean announced the plans unexpectedly during his Budget speech last year.

The Education Scrutiny Panel – Deputy Jeremy Maçon (Chair), Deputy Tracey Vallois (Vice Chair) and Deputy Sam Mézec – appointed Bahram Bekhradnia of the Higher Education Policy Institute (HEPI) to assist in their analysis of the plans. His expert report concluded that the proposals should be welcomed and would address the immediate issue of funding for higher education, but also included concerns.

Mr Bekhradnia noted that the proposals created a "significant amount of deadweight" by supporting the wealthiest households, that the future demand had been underestimated and the proposed model was the most expensive option that had been considered. 

As it is difficult to predict how much demand there will be for higher education, especially with a more generous system, the Panel is now pushing for a "flexible approach." They say "money should be assigned to act as a contingency for the scheme, similar to the Annually Managed Expenditure (AME) contingency assigned in the Medium Term Financial Plan."

They also believe that the future Treasury Minister should report back to the States Assembly by October to give an update on the number of students accessing the new scheme and the subsequent financial impact.

Pictured: Deputy Jeremy Maçon said that the plans should only be seen as an "interim measure" and that more had to be done to find a long-term solution.

The Panel also wrote that the proposals will create a deficit of £1.9 million a year by 2021, which the Minister for Treasury and Resources expects to be found by a future States Assembly. They therefore recommend that the proposal is viewed as an "interim measure" that should be revisited and reviewed before the end of the current Medium Term Financial Plan.

Deputy Maçon commented: “There is no doubt that what has been brought forward to the States Assembly will immediately address the issue of the costs of higher education that has affected so many families in recent years. Whilst the Panel is pleased that something has finally been brought forward to address this issue, the proposals should only be seen as an interim measure, and further work is required to identify a more appropriate long-term solution to the issue of funding higher education.” 

One of the recommendations brought forward by the Panel is for the Treasury Minister to provide detailed costings and analysis of a loan scheme for funding higher education. Such a scheme was previously considered but dropped as the Treasury Minister said it would put the States in £127million debt.