Ministers announce major funding for students

Tuesday 28 November 2017

Students whose parents earn less than £150,000 a year could have their university tuition fees covered in full by the States, if Ministers' plans are approved. There will also be more money to help with living costs.

Treasury Minister Senator Alan Maclean finally revealed his funding plans for higher education this morning as part of the 2018 Budget debate. From 2020 onwards, Ministers will have to find an extra £4 million a year to pay for the plans, but they have not yet identified where this money will come from.

The Treasury Minister told his fellow States members that he is intending to extend the access to grants for tuition fees to "all eligible students." 

"Those students in households with income of less than £150,000 will have access to a grant for 100% of their tuition fees. For those in households with income of £150,000 and above, the grant will cover 50% of the tuition fees."

Treasury Minister @AlanMacleanJsy also announces changes to means-tested maintenance grants - increasing maximum eligibility limit from £63,500 household income to £95,000 #jsybudget2018

— States of Jersey (@StatesofJersey) November 28, 2017

He explained the grant will extend to the maximum cost of a standard UK degree, £9,500 in 2018, with "additional sums for courses such as medicine, in line with the current scheme. (...) All but the most expensive fees will be paid through a States Grant."  

Ministers also propose to increase the maximum maintenance grant by £500 to £6,500. This will remain a means tested grant, but eligibility will increase to an annual household income of £95,000, from the current £63,500.

To help pay for the changes, Ministers propose removing the higher tax allowance for parents with children at university. This change will, from 2021, add an extra £3.5 million to the Education Department’s £10.5 million annual budget for higher education. While families continue to receive these tax allowances, grants for tuition fees will be reduced. 

Treasury Minister, Senator Alan Maclean commented: "I believe that extending Jersey’s current grant-based system is a better option than the introduction of a loan scheme. We will avoid burdening our students and their families with additional debt, incurring the costs of administration and adding further borrowing to the States’ balance sheet.

Pictured: Undergraduates whose parents earn under £150,000 will have 100% of their tuition fees paid by the States under Treasury plans.

"(...) Overall this extra investment in our children, will be found from within existing resources in 2018 and 2019. On an ongoing basis additional funds will have to be found at about £4m pa and would need to be agreed by the next States Assembly. Ahead of the next MTFP a rigorous examination of spending levels, underspends and levels of contingency will be undertaken."

The Education Minister, Deputy Rod Bryans, said: “This proposal helps all Jersey students, and it supports our strategic objective of developing a highly-skilled workforce. We want to support our young people to acquire the qualifications they need to thrive in an increasingly-competitive environment. This measure will help us to meet the economic and social challenges of the coming years.”

The announcement, which was highly anticipated, was received by a round of applause in the Assembly.

Reform Jersey, who have long been campaigning for better student funding and suggested tax rises for top-earners to pay for higher education, welcomed the announcement. They are, however, questioning where the money will come from.

“...this good news and a victory for people power and Reform Jersey. We will be paying close attention to ensure that this proposal is real investment in education and is not funded by cuts to other public services or tax rises on those who cannot afford it. Our proposals were fully funded, not dependent on cuts to other services and included a modest tax cut to low and middle earners. We will bring whatever amendments are necessary to ensure this delivers for Jersey’s talented young people.”

Slightly less generous than our proposal. Still questions to be asked about how the balance of living expenses will be found.

But well done to campaigners who had CoM on the run right from the start on this. https://t.co/M29ZPgHdv1

— Reform Jersey (@ReformJersey) November 28, 2017

A consultation on this proposal is planned, starting with meetings with stakeholders before the end of the year.