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Last updated: 12/02/08
Prisoners Student Loans Suspended

“This is the latest in a long line of Labour fiascos.”
The words of Shadow Universities Secretary, David Willetts, after ministers closed a loophole which meant prisoners were able to claim over £250, 000 in student loans and maintenance grants.

It was revealed that 250 inmates had received grants since 1998, while 91 more had been given repayable loans.

John Denham, the Universities Secretary, in a parliamentary statement describing the change said: “It has been brought to ministers’ attention that there is a long-established but unjustifiable provision in the student support regulations that has allowed prisoners on full time courses in higher education to receive financial support in the form of loans and grants for maintenance.”

Educating offenders is a government objective to reduce crime he said: “Improving the skills of offenders, helping them to move into jobs, is likely to help break the cycle of re-offending."

He also said: "Payments properly made under the student support regulations will have been in compliance with the law. However, I do not believe that it has ever been the intention of parliament that prisoners, who are accommodated at public expense, should receive any additional form of financial support for maintenance. Nor do I believe that it is an appropriate use of public money."

But Mr Willetts said:"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."

Mr Denham declared that the grants and maintenance loans to prisoners would be suspended, but there was scepticism in parliament at the fact that the payments had gone on without being noticed for so long.

Stephen Williams, Liberal Democrat Shadow Innovation, Universities and Skills Secretary added to Mr Willetts comments by saying: "No wonder students are on the breadline when the money meant to support them is being paid to serving criminals."

"Helping prisoners learn new skills is vital but it’s madness to give them student grants for food and rent when they’re already being looked after at Her Majesty’s pleasure."

The Student Loans Company has been told to assess all previous applications to check they were legal and assess full costs.

by Daniel Jaines