Student Financial Support: 1944-2000

Chronology of Events

1944

Education Act introduces equality of access and educational opportunity for all. Local authorities were empowered "to grant scholarships, bursaries and other allowances...for the purpose of enabling pupils over compulsory school age to take advantage without hardship to themselves or their parents of any educational facilities available to them"

1960

Anderson Committee (Cmnd 1051, May 1960) set up to consider a system of grants for students. The Committee report stated: "the country is...committed...to a large expansion in the places available in higher education, and it is the function of the awards system to ensure that those qualified to take advantage of these costly facilities are not deterred from doing so".

1962

Education Act 1962 introduces the Mandatory Awards system .

1963

The Robbins Committee on higher education states: "That courses of higher education should be made available to all those who are qualified by ability and attainment to pursue them, and who wish to do so".

1984

Minimum maintenance grant halved to £205. Student Travel Costs Reimbursement abolished (with the exception of Scotland) in respect of students starting courses from September 1984.

Spring 1984

Spring 1984 Secretary of State for Social Security announces a series of reviews of Social Security provision, specifically a review of student financial support.

1985

1985 Minimum maintenance grant abolished, leaving a 'fees only' minimum award.

June 1985

Government Green Paper "Reform of Social Security" states Government intention of consolidating student support into a single system and ending entitlement of full-time students to social security benefits.

July 1985

Cabinet Ministers reject student loans as an option for student financial support.

1986

1986 Special Equipment Grant for students attending specified courses abolished in respect of students starting courses from September 1986.

Sep 1986

Students lose entitlement to Supplementary Benefit and Unemployment Benefit during Christmas and Easter vacations.

Government withdraw Housing Benefit for students in halls of residence.

Nov 1986

NUS makes submission to Government review of student support condemning Government's agenda of transferring student support away from public funds.

June 1987

Restrictions on payment of Housing Benefit for accommodation left unoccupied during summer vacation

Nov 1988

Government announce its intention to introduce student loans in White Paper 'Top-Up Loans for Students' (Cm 520).

Dec 1988

NUS makes submission to Government on Top-Up Loans condemning the decreasing resources available to students:

"NUS continues to believe that the basic framework should be that set out in the 1963 Robbins Report.... We are seriously concerned by the suggestion from Lord Chilver ...(the then Chairman of the UFC) that, 'Courses of higher education should be available to all those who value them so highly they are prepared to commit resources to them'".

Nov 1989

Government introduces Education (Student Loans) Bill.

Dec 1989

Banks announce they are pulling out of the loans scheme.

Jan 1990

Students and Citizens petition Parliament to reject proposals to introduce student loans and payment by students of tuition fees.

April 1990

The Students Loans Bill receives Royal Assent.

Sept 1990

Sept 1990 New system of student financial support comes into operation:

• Student Loans introduced to 'top up' awards
• All full-time students become ineligible to claim Unemployment Benefit throughout the duration of their course of study
• The vast majority of full-time students become disentitled to Income Support and Housing Benefit
• Government introduce Access Funds as a safety net for students. £25 million is provided while at least £68 million and possibly £100 million was claimed in benefits during 1989-90
• Mandatory grant frozen at 1990/91 level

Oct 1990

NUS meets with Student Loans Company to express reservations concerning repayment schedule and method of collection.

Feb 1991

NUS surveys student unions on use of Access funds and finds that the vast majority of colleges will have depleted funds by the start of summer vacation.

NUS surveys student unions on use of Access funds and finds that the vast majority of colleges will have depleted funds by the start of summer vacation.

NUS survey of student unions reveals student finance crisis.

March 1991

Government announces its intention to abolish Vacation Hardship Allowance (went into effect 6 June)

July 1991

NUS meet with the Minister for Higher Education, Alan Howarth, to express concerns about hardship faced by students in the forthcoming summer vacation.

Government release 10 per cent of forthcoming academic year Access Funds to cover student hardship over summer.

Oct 1991

NUS launch priority campaign to protest about Government's policies in respect of student finance and urge students to prepare for forthcoming General Election by registering to vote.

Nov 1991

Nov 1991 House of Commons Select Committee on Education, Science and the Arts announce inquiry into student financial hardship for Dec 1991 and invite submission from NUS. ( This was inconclusive as a General Election was called in spring 1992).

Nov 1993

Government announces grant to be cut progressively by 10% each year over 3 years from 1994/95 to 1996/97 and loan to be increased to compensate. Also announce that following review of Access Funds, they will continue for the next 3 years.

Nov 1994

Budget Announcement. Student support package to increase by 2.5% for 1995/96. Basic rate of mandatory grant to be cut by a further 8% and student loans to increase correspondingly. The additional allowance for mature students ("Older Students' Allowance") to be abolished for new entrants from 1995/96. A new 'special rate' of student loan also announced, available to students studying in London and living away from the parental home but whom the LEA had assessed to receive the parental home rate of grant. This 'special rate' is lower than the London rate

August 1995

Following two successful cases in the Court of Appeal in February 1995 when two former students won the right to claim Social Security benefits during periods when they interrupted their studies ('intercalation'), the Government brings forwards amending regulations to ensure that students who take breaks from their studies cannot claim benefits.

Nov 1995

DfEE Budget statement. Student Support package to increase by 2.6% for 1996/97. Basic rate of grant cut by an average of 10% student loans to increase to compensate. The 'special rate' of student loan is abolished as is the requirement in the Awards Regulations that students who could 'conveniently attend' their course from the parental home but do not live there can only qualify for the 'at home' rate of grant.

Feb 1996

The Committee of Vice-chancellors and Principals meet to discuss whether to charge students a levy to compensate for funding cuts to universities and colleges. The decision is postponed until November 1996, pending any further cuts or increases in funding in the next budget.

The Government announce a National Committee of Inquiry into Higher Education to be chaired by Sir Ron Dearing, to examine student hardship and underfunding of education. The findings will be released in the Summer of 1997

March 1996

NUS changes its policy on education funding, with the aim of creating a realistic agenda for change which may influence the political parties. The new policy calls for increased financial support for further education students and accepts a new form of funding for higher education students which includes grants and a form of income-contingent graduate contributions.

May 1997

The Labour Party wins General Election with a landslide majority.

July 1997

Sir Ron Dearing's National Committee of Inquiry report, Higher Education in the Learning Society, is published. The committee recommends that graduates make a flat rate contribution of around 25 per cent of higher education tuition fees, on an income contingent basis. In addition, the committee recommends that the Government introduces an income-contingent loan for 50 per cent of maintenance costs, alongside the existing grant.

Within hours of the Dearing Report being released, the Government announces that it has accepted Sir Ron Dearing's proposal to charge students tuition fees - with the modification that fees will be means-tested so that students from the poorest families will not have to pay. In addition, the existing grant+loan system is to be abolished and replaced by income-contingent loans for maintenance.

July 1998

After a year of high profile campaigning by NUS and despite one of the most significant and controversial parliamentary battles between the Lords and the Commons in 70 years, the Government finally push through the 1998 Education Bill (Teaching and Higher Education) and it receives the Royal Assent to become the 1998 Education Act the following day. The Government promise to monitor the effect of fees and especially to review policy over Scottish university fees whereby non-Scots UK students will be asked to pay up to £1,000 more to study in Scotland than Scottish or other European students.

Sept 1998

NUS forces the Committee of Vice Chancellors and Principals to prevent universities from charging administration charges on the collection of tuition fees. 'Fees for fees' are seen as the first evidence of Vice Chancellors attempts to introduce top-up fees and differential fees.

March 1999

NUS annual conference passes a new funding policy calling for a mixed system allowing the poorest students access to the means tested benefits system. Access to benefits is seen as equal rights for students as equal citizens.

May 1999

Howard Newby is elected as chair of the Committee of Vice Chancellors and Principals and recommends differential fees with a means tested voucher for poorer students. The Secretary of State for Education and Employment, David Blunkett, says 'top-up' or differential fees are not on the agenda and outlawed by the Teaching and Higher Education Act.