The private contractor blamed for delays with education maintenance allowances faces £3m penalties, says the Learning and Skills Council.
The private contractor blamed for delays with education maintenance allowances faces £3m penalties, says the Learning and Skills Council.
The LSC which hired Liberata to administer the allowances in England says this is how much it estimates it will deduct from payments.
The LSC which hired Liberata to administer the allowances in England says this is how much it estimates it will deduct from payments.
The EMA allowances, intended to help teenagers stay in education, have been disrupted by administrative delays.
The EMA allowances, intended to help teenagers stay in education, have been disrupted by administrative delays.
There is still a backlog of 150,000 applications to be processed.
There is still a backlog of 150,000 applications to be processed.
'Running hard to stand still'
'Running hard to stand still'
Rob Wye, the LSC's director of young people's learning and skills, says that the contractual penalties for the delays are currently estimated at £3m.
Rob Wye, the LSC's director of young people's learning and skills, says that the contractual penalties for the delays are currently estimated at £3m.
The contractor, Liberata, also has to pay for the extra staff hired to tackle the delayed applications for allowances, says Mr Wye.
The contractor, Liberata, also has to pay for the extra staff hired to tackle the delayed applications for allowances, says Mr Wye.
Applications are still arriving, he says, and as such it is a case of "running hard to stand still". But he said the LSC was "pressing the contractor very hard".
Applications are still arriving, he says, and as such it is a case of "running hard to stand still". But he said the LSC was "pressing the contractor very hard".
Mr Wye says he is "very loathe to put a date" on when the backlog will have been completely tackled.
Mr Wye says he is "very loathe to put a date" on when the backlog will have been completely tackled.
Students and their families have been complaining about growing hardship caused by delays in receiving education maintenance allowances.
Students and their families have been complaining about growing hardship caused by delays in receiving education maintenance allowances.
"I live alone, EMA makes up nearly half of my weekly income so I was desperately in need of it... With living costs rising, I am really beginning to struggle and am having to choose between heating or eating," writes Sian from Leicester.
"I live alone, EMA makes up nearly half of my weekly income so I was desperately in need of it... With living costs rising, I am really beginning to struggle and am having to choose between heating or eating," writes Sian from Leicester.
'Humiliating, frustrating, annoying'
'Humiliating, frustrating, annoying'
The Learning and Skills Council has written to further education college principals promising that it will fund any emergency support given by colleges to students.
The Learning and Skills Council has written to further education college principals promising that it will fund any emergency support given by colleges to students.
But e-mails suggest that support and advice is not always proving easy to access.
But e-mails suggest that support and advice is not always proving easy to access.
"No news whatsoever. We can't even get through to anyone on the phone.
"No news whatsoever. We can't even get through to anyone on the phone.
"In the past week since my eldest started at college, in all her classes she hasn't found one single person yet who has received any EMA," writes Sandra from Barnsley.
"In the past week since my eldest started at college, in all her classes she hasn't found one single person yet who has received any EMA," writes Sandra from Barnsley.
"The college's student support is inundated with hundreds and hundreds of kids who haven't had anything."
"The college's student support is inundated with hundreds and hundreds of kids who haven't had anything."
This mother of two sent off documents to support her application for her daughter in June - and she says that the failure to process the allowance is now disrupting other benefits, where she needs to prove that she has a dependent child in full-time education.
This mother of two sent off documents to support her application for her daughter in June - and she says that the failure to process the allowance is now disrupting other benefits, where she needs to prove that she has a dependent child in full-time education.
"It has been humiliating, frustrating, annoying and so, so upsetting. You can only imagine what our children are feeling like, at seeing their families put through this hell; they are getting upset and confused because they are not getting the EMA they were promised, and they are seeing their family being financially penalised," writes Sandra.
"It has been humiliating, frustrating, annoying and so, so upsetting. You can only imagine what our children are feeling like, at seeing their families put through this hell; they are getting upset and confused because they are not getting the EMA they were promised, and they are seeing their family being financially penalised," writes Sandra.
The intention of EMAs is to prevent youngsters drifting out of education too early - but there have been e-mails claiming that teenagers are considering dropping out.
The intention of EMAs is to prevent youngsters drifting out of education too early - but there have been e-mails claiming that teenagers are considering dropping out.
"I am missing one lesson a week to work a shift so I can have money to spend on food the week after. I can't ask my mum for money as she is only on benefits.... I'm going have to drop out and work full time as not only me but my family need to get by," said Layla from Manchester in an e-mail to the BBC News website.
"I am missing one lesson a week to work a shift so I can have money to spend on food the week after. I can't ask my mum for money as she is only on benefits.... I'm going have to drop out and work full time as not only me but my family need to get by," said Layla from Manchester in an e-mail to the BBC News website.
'Unreliable'
'Unreliable'
The means-tested EMA allowances, worth up to £30 per week, were introduced to help young people stay in education beyond the age of 16, paying for expenses such as bus fares and meals.
The means-tested EMA allowances, worth up to £30 per week, were introduced to help young people stay in education beyond the age of 16, paying for expenses such as bus fares and meals.
About 600,000 students were expected to receive them this year in England - but the system has been struck by administrative problems, with 150,000 applications being caught in a backlog. Applicants in the rest of the UK are not affected.
About 600,000 students were expected to receive them this year in England - but the system has been struck by administrative problems, with 150,000 applications being caught in a backlog. Applicants in the rest of the UK are not affected.
Students and colleges have also complained about difficulties in contacting a helpline.
Students and colleges have also complained about difficulties in contacting a helpline.
The Learning and Skills Council says the problems have been caused by the private contractor it appointed to administer the allowances, Liberata.
The Learning and Skills Council says the problems have been caused by the private contractor it appointed to administer the allowances, Liberata.
In a letter sent to further education college principals on Friday, the LSC says that Liberata's "speed of processing applications is unacceptable".
In a letter sent to further education college principals on Friday, the LSC says that Liberata's "speed of processing applications is unacceptable".
It also says that customer service has been unsatisfactory, the contractor has been asked to "re-train" staff and the telephone system is "unreliable".
It also says that customer service has been unsatisfactory, the contractor has been asked to "re-train" staff and the telephone system is "unreliable".
The contractor, Liberata, employed an extra 460 staff to clear the delay and last week was expecting the backlog to be cleared by the end of September.
The contractor, Liberata, employed an extra 460 staff to clear the delay and last week was expecting the backlog to be cleared by the end of September.
In April 2008 an arm of Liberata - Liberata Financial Services - was fined £525,000 by the Financial Services Authority for "failures in its systems and controls for producing and issuing documents". Liberata sold this part of its business earlier this month.
In April 2008 an arm of Liberata - Liberata Financial Services - was fined £525,000 by the Financial Services Authority for "failures in its systems and controls for producing and issuing documents". Liberata sold this part of its business earlier this month.
David Collins, president of the Association of Colleges, says that the processing of EMA applications seemed to be improving.
David Collins, president of the Association of Colleges, says that the processing of EMA applications seemed to be improving.
"Where students are still awaiting payment colleges have continued to assist them through emergency funds - in particular with travel, food or text book costs for those in greatest need," said Mr Collins.
"Where students are still awaiting payment colleges have continued to assist them through emergency funds - in particular with travel, food or text book costs for those in greatest need," said Mr Collins.
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Send us your comments on this story, using the form below:
My son is 2nd year A level student who qualifies for EMA. He has not as yet received a penny and neither have any of this friends. He also works part time to give him a sense of the value of money before he goes to university. It is another example of outsourcing to the cheapest provider, not the best.jacquie, yorkshire
My son is 2nd year A level student who qualifies for EMA. He has not as yet received a penny and neither have any of this friends. He also works part time to give him a sense of the value of money before he goes to university. It is another example of outsourcing to the cheapest provider, not the best.Jacquie, Yorkshire
I sent off for my EMA about 7 weeks ago and still not got it. Adam, Flint, North Wales
I sent off for my EMA about 7 weeks ago and still not got it. Adam, Flint, North Wales
I sent off for my EMA at the end of July and got a reply shortly saying I'd sent the wrong paperwork, so I sent back the right one straight away. I haven't heard anything since. I started college this week and need money for train fares and course materials, and even with my part time job I cannot afford it! It's driving me to the edge, I'm not sure what to do.Emma, Sussex
I sent off for my EMA at the end of July and got a reply shortly saying I'd sent the wrong paperwork, so I sent back the right one straight away. I haven't heard anything since. I started college this week and need money for train fares and course materials, and even with my part time job I cannot afford it! It's driving me to the edge, I'm not sure what to do.Emma, Sussex
Whilst I agree that the length of time taken to process these applications appears to be unsatisfactory, I'm not entirely sure I understand why these teenagers are becoming "upset and confused" because they are not getting the money they were promised. I think the only people who are right to be upset are the parents, as they are clearly under financial pressure. If these children are so upset at seeing their families "put through hell" then perhaps they ought to get a weekend job? I fear we're raising a generation of children who think that life owes them a living and that they don't need to earn money.
Whilst I agree that the length of time taken to process these applications appears to be unsatisfactory, I'm not entirely sure I understand why these teenagers are becoming "upset and confused" because they are not getting the money they were promised. I think the only people who are right to be upset are the parents, as they are clearly under financial pressure. If these children are so upset at seeing their families "put through hell" then perhaps they ought to get a weekend job? I fear we're raising a generation of children who think that life owes them a living and that they don't need to earn money.
Both of my parents were on benefits when I grew up and therefore I know what it's like to live with next to no money. We didn't have EMA when I was in sixth form so I went and got a part time job. It's common sense. Jobs are quite easy to find at this time of the year too, what with many employers taking on for Christmas. Leanne, Bath, UK
Both of my parents were on benefits when I grew up and therefore I know what it's like to live with next to no money. We didn't have EMA when I was in sixth form so I went and got a part time job. It's common sense. Jobs are quite easy to find at this time of the year too, what with many employers taking on for Christmas. Leanne, Bath, UK
I worked my way right through college. I worked 19.5 hours a week in my first year, and then 24 hours a week in my 2nd year. This meant that I was working twice as hard as my friends to pay for things like textbooks, which aren't cheap!I found it highly inappropriate that I wasn't entitled to any help from EMA. My parents may have earnt over £30000 but they also had a mortgage to pay and another child to look after.I think everyone should be entitled to the same amount.At the same time i think if you could live without EMA during school, why does starting college mean that, all of a sudden, not receviing the EMA is a problem?anon, bristol
EMA is extremely unfair and does not create the equality in students that it's intended to. I could go to school on time and attend all my lesson and so can my buddy next to me. However, he would receive money where as I would not. I had to take out a new job to get the sort of money they receive. To make things worse, I was taxed on that job, essentially paying for my friend! 9/10 students I knew that were on EMA did not have a job, this is teaching young people that the government will look after you, no lesson to the new generation just coming into the real world.David, Ipswich, UK
EMA is extremely unfair and does not create the equality in students that it's intended to. I could go to school on time and attend all my lesson and so can my buddy next to me. However, he would receive money where as I would not. I had to take out a new job to get the sort of money they receive. To make things worse, I was taxed on that job, essentially paying for my friend! 9/10 students I knew that were on EMA did not have a job, this is teaching young people that the government will look after you, no lesson to the new generation just coming into the real world.David, Ipswich, UK
