David Willetts

Commenting on the Government’s astonishing admission that prisoners have been paid £500,000 in student grants and loans to pay for food and rent while in jail.Shadow Innovation, Universities and Skills Secretary David Willetts said:

“This is the latest in a long line of Labour fiascos. Students struggling to make ends meet will rightly be outraged. Prisoners are getting taxpayers’ money to help with food and rent, when they’re already being fed and housed at the taxpayers’ expense. Prisoners should be encouraged to learn and train whilst serving their sentence but not with grants designed to help students with their living costs.

“It is right that the minister has finally stopped the abuse. But how was it allowed to carry on for so long? Why was it not picked up sooner? Instead of answering these questions it is typical of Labour to smuggle out this announcement just when the House of Commons is rising for a recess.”

Notes to Editors

Government advertising student grants for prisoners

The Government’s own guidance and forms seem to have advertised the loophole which has seen prisoners claiming loans and grants worth hundreds of thousands of pounds:

• The application form for student grants and loans states: ‘You should not complete this form if any of the following apply to you:… You are a prisoner serving a custodial sentence. If this is the case, you will not be eligible for grants or Disabled Students’ Allowances (DSAs) for a part-time course. If you go to prison or are released from prison during the academic year, you may be able to receive grants and DSAs for a part-time undergraduate course.’ (Guidance notes for part-time students (PTG1 notes) (2007/2008) (PDF, 362K))

• The Education (Student Support) Regulations 2000 were also amended to state:

“(3A) Subject to paragraph (3B), an eligible part-time student shall not be eligible for a loan if he is a prisoner serving a custodial sentence.
(3B) Paragraph (3A) shall not apply in respect of an academic year during which the student enters prison to serve a custodial sentence or is released from prison having served such a sentence.” (http://www.opsi.gov.uk/SI/si2000/uksi_20002912_en.pdf )

The guidance notes explain: ‘Regulations 29 and 32 of the Student Support Regulations are also amended to exclude prisoners serving custodial sentences from eligibility for loans and grants for disabled part-time students’ living costs, except in respect of an academic year in which they enter prison to serve such a sentence or are released from prison having served such a sentence (regulations 9(3) and 11(c)).’