England Reintroduces Maintenance Grants for Low-Income Students by 2029

Speaking at the Labour Party Conference in Liverpool, Education Secretary Bridget Phillipson has announced the return of maintenance grants for university students from low-income households by 2029 in a targeted, means-tested format. The move marks one of the most significant changes to student finance in England in nearly a decade.

The new grants will apply to students from the lowest-income households studying priority courses at Levels 4 to 6 — including degrees, Diplomas of Higher Education, and technical qualifications — under the Lifelong Learning Entitlement scheme. The amount of money eligible students will be able to receive in the grant will be means-tested, meaning it will depend on how much a student's family earns.

Unlike maintenance loans, grants do not need to be repaid, offering direct financial support to students struggling with the rising cost of living. Maintenance grants were scrapped in 2016 by then-chancellor George Osborne, who called them “unaffordable.” Before their removal, over 500,000 students in England received grants worth up to £3,387 per year.

The reintroduced grants will be fully funded through a new International Student Levy, which will apply to higher education providers in England. The government said this approach would ensure that revenue from international students “benefits working-class domestic students” while maintaining a competitive offer for overseas applicants.

The announcement follows mounting evidence that maintenance loans no longer cover basic student living costs. Recent Higher Education Policy Institute (Hepi) research found students need around £61,000 to complete a three-year degree at a “minimum socially acceptable standard of living,” while the maximum loan covers only half that amount. And a recent Save the Student survey reported an average £502-per-month shortfall between student loans and actual living costs.

Phillipson’s announcement also comes alongside wider anti-poverty measures, including the rollout of free breakfast clubs and the establishment of the Child Poverty Taskforce, which she chairs. She pledged that child poverty will be lower at the end of this Parliament than at the start.

Full details of the maintenance grants and International Student Levy will be unveiled in the Autumn Budget this November.

Sources: https://www.gov.uk/government/news/targeted-maintenance-grants-for-students-to-be-reintroduced

https://www.bbc.com/news/articles/c749vnylk1jo