Serious problems with student loans system

Shadow Universities and Skills Secretary, David Willetts, has today written to Lord Mandelson to seek assurances about reports that the student loans system is experiencing serious problems with processing applications.

Just weeks before the first payments are due to be made, many potential students have written to express their concern about inaccurate information, loss of documents and an unresponsive helpline.

These problems are reminiscent of recent Government fiascos over Educational Maintenance Allowance (EMA) payments and national curriculum tests.

The text of the letter is below:

"Dear Peter

I am concerned about the serious problems prospective students are facing in sorting out their financial support before starting university this month. I am receiving letters and emails on a daily basis from students and their parents who are finding it hard to obtain accurate information about their student support applications. The Government set up new arrangements for this year, including replacing Student Finance Direct with Student Finance England, and these do not appear to be working properly. There is a clear and substantial risk that new students will face serious financial problems at the start of the new university term.

Among the problems that people are experiencing are:

• a lack of useful information on basic facts like whether an application has started to be processed;
• insufficient information about the receipt and location of original personal documents;
• repeated website failures and no response from the helpline; and
• an absence of accurate information on their financial entitlement.

Because students need a financial settlement letter in order to start university, the problems look set to affect their ability to enrol at university as well as their financial situation. And those from less well-off households are affected worst of all, as they are entitled to income-related grants alongside the student loans.

Are you aware of these problems? What steps are you taking to tackle them? And are you able to reassure all young people starting university this autumn who applied before the deadline that they will receive their full loan and grant entitlement at the start of the new term?"

Willetts attacks Labour for blocking A-level students' path to uni

David Willetts has warned that many A-level students will be prevented from going to university because of Labour’s higher education policies.

David, the Shadow Universities and Skills Secretary, congratulated everyone who received their A-level results today, saying, “Their success reflects an enormous amount of hardwork.”

And he stressed it was “tragic” that Labour have blocked the path to university for so many A-level students:

“The Government first reduced the number of university places, then offered only unfunded places and are now threatening to fine universities that over-recruit. They said they wanted half of all young people to go to university by 2010, but now they are blocking progress towards their own target.”

David warned, “This must not happen again. There needs to be a better system, and that’s why we have been constantly calling for a student fees review.”

Willetts condemns lack of support for part-time students

David Willetts described the lack of support available to part-time students as "indefensible" after a new report claimed nine out of ten such students receive no financial assistance from the Government.

David, the Shadow Universities and Skills Secretary, praised the Policy Exchange report for being a "useful contribution to the debate".

And he said, "Ministers talk a great deal about widening access to university but their words sound hollow. They are doing nothing to improve the regime for part-time students, who tend to come from more disadvantaged backgrounds, and have even cut help for people wishing to retrain at a university."

With a third of undergraduates studying part time, David stressed, "The Government must urgently establish an independent student finance review that covers part-time funding in its terms of reference. This is more important than ever as the economy rebalances during the recession."

Willetts warns fall in apprenticeships is "devastating blow"

David Willetts has accused Labour of creating a “lost generation” after new figures revealed that opportunities for young people to become apprentices are decreasing.

Official statistics show that, despite ministers’ targets of more apprenticeships for young people, the number of 16- to 18-year-olds starting an apprenticeship fell by eight per cent in the first three quarters of 2008/09 - and the number of 19- to 24-year-olds starting an apprenticeship fell by two per cent.

David, the Shadow Secretary for Universities and Skills, described the figures as a “devastating blow” to young people:

“Only yesterday, Gordon Brown promised more opportunities for school leavers, yet today we discover there has been a significant fall in the number of teenagers and young adults starting an apprenticeship.”

“We must help young people through the recession, but Labour has created a lost generation. The grim reality is that there is now a record number of 16-24 year-olds not in education, employment or training.”

David stressed, “It is time for a Conservative Government which will provide more, real apprenticeship opportunities for young people.”

We need a Government that is on the side of young people

David Willetts has described new Government figures showing that more than one in ten 16-18 year olds in England are not engaged in any positive activity as "more evidence that young people are bearing the brunt of the recession".

The Shadow Universities and Skills Secretary said the news that the proportion of young people not in education, employment or training is still rising shows the need for a Government that is "on the side of young people" and added:

"This problem has been getting worse for more than ten years, long before the recession began. Now that times are harder, the problems are becoming more acute."

David also said that the recent break-up of the Department of Innovation, Universities and Skills - which was set up to help school leavers into work, university and further education - has "added insult to injury."

98% of 'new' Government apprentices are existing trainees

Monday, May 18 2009New Government figures show that just thirty of the 1,395 people being trained on Labour’s flagship apprenticeship scheme are new employees.

The remaining trainees – 98 per cent of those on the scheme – were already employed in central Government prior to becoming apprentices.

David Willetts, the Shadow Innovation, Universities and Skills Secretary, said the figures cast “grave doubts” on Labour’s ability to deliver on their promise to increase the number of public sector apprentices.

And he accused Labour Ministers of being “so concerned with chasing headlines that they seem to have simply renamed existing trainees”:

“As the recession bites, it is more important than ever to create new training opportunities. Ministers re-labelling workplace training as apprenticeships in order to meet targets helps no one.”

Labour slammed after college funding fiasco

David Willetts has criticised the Government for not taking responsibility for the college funding crisis, following the resignation of the Chief Executive of the Learning and Skills Council (LSC).

Mark Haysom has stepped down following problems with the LSC's further education capital programme.

David, the Shadow Secretary of State for Innovation, Universities and Skills, highlighted that ministers must have been aware of the funding problems:

"The LSC minutes for last year, published after pressure from us, show officials were informed of the capital crisis six months ago."

He slammed Labour for not "taking the rap" and stressed the need for urgent action to resolve the current problems:

"Now the focus must be on tackling the serious crisis that threatens the viability of colleges and the training prospects of thousands of young people. So far, the Government has made absolutely no practical proposals to tackle the underlying problem. We need them to act."