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Published on July 8th, 2015 | by Laura Davey
Image © The Budget is simply where the Chancellor of Exchequer, George Osborne, lays out the spending and cutting plans of the current Government. The General Election this year saw the Conservatives get a majority vote and therefore unlike in the 2010 Coalition, the Conservatives are free to spend and cut without having to worry about appeasing the Liberal Democrats. Osborne announced today that the University Maintenance Grants given to the poorest students are to be scrapped after having become “unaffordable.’ The plan is instead to replace the Grants with loans ; “So from 2016/17 academic year, we will replace maintenance grants with loans for new students, loans that only have to be paid back once they earn over £21,000 a year” Currently the poorest students whose families earn less than 25,000 per annum are given up to 3,387 a year. Osborne plans to change this in an attempt to make University “affordable to all students from all backgrounds” by increasing the Maintenance Loan to a maximum of £8,200 a year. So what does this all mean for students? By forcing students to pay up to £9000 a year for university education and taking away the only interest free income source, Osbourne’s decision is radical and bound to affect many young people considering or currently in further education across the UK. For those heavily reliant on the Grant within their households as a means of preventing the need for extra loans, the plans for education within the proposed summer budget are unsettling. It is fair to say that students have already borne the brunt of education worries since 2010 when Tuition Fees trebled and the Education Maintenance Allowance was scrapped. Now students have to face the reality that no Grant coverage can only guarantee more outstanding debt once their degree is complete. For young students considering the option of university in the UK in the next few years, Osborne’s decision is providing a likely deterrent. As we discovered under the new Government 18 - 21 year olds can no longer be entitled to claim housing benefit automatically, but are expected to “earn to learn.’ With no automatic housing benefit nearly 20,000 young Brits will be affected, potentially leading to increased rates of homelessness across Britain. Combined with Osbourne’s decision, the prospect of prosperity for young people in the UK seems slim with a suspected 20,000 extra homeless resulting from the cuts in housing benefits for young people. For now at least it seems that rather than supporting its youth, Britain’s government are stunting the next generation’s potential and development and thus creating a democracy entirely based on economical rather than intellectual gain. Many people had a lot to say about the Budget on social media:  

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The Budget 2015: What it means for Young People

The Budget is simply where the Chancellor of Exchequer, George Osborne, lays out the spending and cutting plans of the current Government. The General Election this year saw the Conservatives get a majority vote and therefore unlike in the 2010 Coalition, the Conservatives are free to spend and cut without having to worry about appeasing the Liberal Democrats.

Osborne announced today that the University Maintenance Grants given to the poorest students are to be scrapped after having become “unaffordable.’ The plan is instead to replace the Grants with loans ; “So from 2016/17 academic year, we will replace maintenance grants with loans for new students, loans that only have to be paid back once they earn over £21,000 a year” Currently the poorest students whose families earn less than 25,000 per annum are given up to 3,387 a year. Osborne plans to change this in an attempt to make University “affordable to all students from all backgrounds” by increasing the Maintenance Loan to a maximum of £8,200 a year.

So what does this all mean for students? By forcing students to pay up to £9000 a year for university education and taking away the only interest free income source, Osbourne’s decision is radical and bound to affect many young people considering or currently in further education across the UK. For those heavily reliant on the Grant within their households as a means of preventing the need for extra loans, the plans for education within the proposed summer budget are unsettling.

It is fair to say that students have already borne the brunt of education worries since 2010 when Tuition Fees trebled and the Education Maintenance Allowance was scrapped. Now students have to face the reality that no Grant coverage can only guarantee more outstanding debt once their degree is complete. For young students considering the option of university in the UK in the next few years, Osborne’s decision is providing a likely deterrent.

As we discovered under the new Government 18 – 21 year olds can no longer be entitled to claim housing benefit automatically, but are expected to “earn to learn.’ With no automatic housing benefit nearly 20,000 young Brits will be affected, potentially leading to increased rates of homelessness across Britain.

Combined with Osbourne’s decision, the prospect of prosperity for young people in the UK seems slim with a suspected 20,000 extra homeless resulting from the cuts in housing benefits for young people. For now at least it seems that rather than supporting its youth, Britain’s government are stunting the next generation’s potential and development and thus creating a democracy entirely based on economical rather than intellectual gain.
Many people had a lot to say about the Budget on social media:

 

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