Government of Jersey

Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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A decision made (27/07/2009) regarding: Student Grants Order - September 2009.

Decision Reference: MD-ESC-2009-0013ESC-2009-0013 SC-2009-0013
Decision Summary Title):	Student Grants Order: September 2009		Date of Decision Summary:	21/7/09
Decision Summary Author:	D Greenwood, Assistant Director – Culture & Lifelong Learning		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Education (Discretionary Grants – Amounts) (Jersey) Order 2008: Amendments 2009		Date of Written Report:	21/7/2009
Written Report Author:	D Greenwood, Assistant Director – Culture & Lifelong Learning		Written Report : Public or Exempt?	Public
Subject: Education (Discretionary Grants – Amounts) (Jersey) Order 2008: Amendments.
Decision(s): The Minister determined that the Education (Discretionary Grants – Amounts) (Jersey) Order 2008 should be amended as follows - Amend Section 3 of the Order, to replace “1415” with “1455” Amend Section 4 Para 5a of the Order, to replace “14004” with “14043”. He further instructed the Department – (a) to undertake a comprehensive review of student financial support in 2009/2010 with a view to making more detailed and far-reaching proposals for 2010 entrants; and, (b) to carry out the necessary work in preparation for a possible decision to improve the level of student grants with effect from December 2009, subject to an agreement by the States to support an amendment to the draft Annual Business Plan 2010 in September 2009.
Reason(s) for Decision: The 1999 Education (Jersey) Law empowers the Minister for Education Sport and Culture (through Orders in the States) to make loans and grants to individuals wishing to follow courses of Higher Education. The orders are subject to change each year to reflect changes which the Minister may wish to make with regard to the value of the award or the way grants are assessed or administered. The amendments, which should be put in place by 1st September 2009, take account of: Increased variable tuition fees charged by UK universities The increase in the maximum parental contribution due to the increase in tuition fees.
Resource Implications: The proposed changes to the level of financial support, together with the planned review, can be managed within existing resources.
Action required: Request the Law Draftsman to prepare the necessary amendment to the Order (on the basis of a brief to be prepared by the Department) for subsequent consideration by the Minister.
Signature:		Position: Minister for Education, Sport and Culture
Date Signed:		Date of Decision:

Student Grants Order - September 2009.

Education, Sport and Culture Department Ministerial Report
Subject:	Education (Discretionary Grants – Amounts) (Jersey) Order 2008 Amendments 2009
Exempt Clause:	Public	Date:	21 July 2009

Author:	D. Greenwood

Background

Article 51 of the Education (Jersey) Law 1999 states that the Minister ‘may, by Order make provision with respect to the advance of financial assistance to persons over compulsory school age attending courses of education…’

In order to meet the requirements of the above law the Minister is required each year to amend previous orders to take account of changes in policy procedure or funding, which may be required from time to time. The Minister’s decisions in this respect are recorded in Order papers, laid before the States each September. The following report outlines the current position with regard to student grants. It makes several recommendations including amendments to be made to grants orders for September 2009.

Current Value of Student Financial Support and the Department’s Capacity to Improve the Offer

Since 2001 the value of States financial support to students in higher education has diminished. Recent research suggests that to bring States student support back to 2001 values would required a 30% increase in expenditure.

The following table indicates the year on year changes in States and parental contributions towards costs as a percentage of total estimated spend.

Year	Total States Contribution	Total parent/student contribution (inc student loan)	Percentage States Contribution	Percentage Parental Contribution
2003/4	8,803,549	5,370,420	62%	38%
2004/5	8,975,578	5,975,872	60%	40%
2005/6	9,048,410	6,855,286	57%	43%
2006/7	8,585,196	7,764,207	53%	47%
2007/8	7,932,545	8,618,574	48%	52%
2008/9	7,393,720	9,384,617	44%	56%

The reasons for the drift towards greater expenditure by parents and decreasing expenditure by the States are:

the low income threshold ( the point at which families begin contributing to costs) was established at £26,750 in 2001 and it has remained unchanged ever since. As a result the natural upward drift of salaries (at least in line with RPI) has meant that more families contribute towards maintenance costs;

the removal of the travel allowance for commuting to and from university from the maintenance allowance;

the removal of additional maintenance support available to students studying in the London area;

a requirement on students (or their parents) to meet the additional costs of university study brought about by the increase in top-up fees in 2006;

a ‘freezing’ of the value of the means tested maintenance element of the grant with effect from 2006.

Recent research has suggested that a student in the UK needs approximately £250 per week to meet living costs. The current value of the maintenance grant is approximately £154 per week. It is generally accepted that, where possible, parents try to ensure that their children receive additional support and, many students seek to supplement their income through part-time or vacation work. Families on low income however, often struggle to find ways of making the required additional two or three thousand pounds available to their children.

It is accepted that, within current DfESC resources it is not feasible at this time to restore the value of student financial support to 2001 levels. In view of the above therefore this report recommends a comprehensive review of student financial support in 2009/2010 with a view to making more detailed and far-reaching proposals for 2010 entrants.

It is also understood that the Minister intends to seek additional funding for student grants by way of an amendment to the States Business plan. If he is successful in this endeavour it will be possible to improve student grants via an adjustment to the levels of support to students for terms two and three of the 2009/10 academic year.

Amendments

In view of the Ministers agreement to make no substantial changes to the basic level of support to students for September 2009. The Minister is recommended to make the following amendments to the Orders with effect from 1st September 2009. The amendments take account of changes in the variable top up fee charged by universities and the maximum parental contribution, which has risen this year as a result of a new agreement with UUK regarding Island tuition fees.

Amend Section 3 of the order, to take account of changes in the variable top up fee charged by universities - replace 1415” with “1455”

Amend Section 4 Para 5a of the order, to take account of the maximum parental contribution, which has risen this year as a result of a new agreement with UUK regarding Island tuition fees - replace “14004” with “14043”

3. Recommendations

The Minister is recommended to:

instruct officers to undertake a comprehensive review of student financial support in 2009/2010 with a view to making more detailed and far-reaching proposals for 2010 entrants;

instruct officers to carry out the necessary work in preparation for a possible decision to improve the level of student grants with effect from December 2009, subject to an agreement by the States to support an amendment to the Business plan in September 2009;

agree the recommended changes to grants orders, make the Orders, and instruct Officers to liaise with the Law drafting officers to prepare new orders to take effect from 1st September 2009.