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| Student grant firm to be axed | Student grant firm to be axed |
| (about 11 hours later) | |
| An alternative company has been lined up to take over the delivery of the delay-hit education maintenance allowances, BBC News has learnt. | An alternative company has been lined up to take over the delivery of the delay-hit education maintenance allowances, BBC News has learnt. |
| Tens of thousands of students are still waiting for payments, more than two months after the beginning of term. | Tens of thousands of students are still waiting for payments, more than two months after the beginning of term. |
| An announcement is expected later this week about the contract currently held by outsourcing firm Liberata. | An announcement is expected later this week about the contract currently held by outsourcing firm Liberata. |
| Liberata, heavily criticised by the Learning and Skills Council, says it cannot comment on the contract. | Liberata, heavily criticised by the Learning and Skills Council, says it cannot comment on the contract. |
| Negotiations are believed to be at an advanced stage - for the contract previously held by Capita. | Negotiations are believed to be at an advanced stage - for the contract previously held by Capita. |
| The allowances are paid to about 600,000 teenagers from low-income families as an incentive to keep them from dropping out of education. | The allowances are paid to about 600,000 teenagers from low-income families as an incentive to keep them from dropping out of education. |
| The contract to deliver the allowance and other payments is currently worth more than a million pounds a month. | The contract to deliver the allowance and other payments is currently worth more than a million pounds a month. |
| A spokesperson for Liberata said she was unable to comment on speculation about the EMA contract. | A spokesperson for Liberata said she was unable to comment on speculation about the EMA contract. |
| Tesco vouchers | Tesco vouchers |
| But a statement from the company says that it is committed to ensuring that other services "are not affected by the Learning and Skills Council contract situation". | But a statement from the company says that it is committed to ensuring that other services "are not affected by the Learning and Skills Council contract situation". |
| Most of the allowances are for further education students | Most of the allowances are for further education students |
| It is understood that if the EMA contractor is replaced that any change would be likely to include a transfer of staff. | It is understood that if the EMA contractor is replaced that any change would be likely to include a transfer of staff. |
| A spokesman for the Department for Children, Schools and Families was also unable to comment on whether the contract would be continued. | A spokesman for the Department for Children, Schools and Families was also unable to comment on whether the contract would be continued. |
| There have been long-running problems with the delivery of the means-tested allowances of up to £30 per week - which last week prompted Blackburn College to "tide over" hard-up students with Tesco supermarket food vouchers. | There have been long-running problems with the delivery of the means-tested allowances of up to £30 per week - which last week prompted Blackburn College to "tide over" hard-up students with Tesco supermarket food vouchers. |
| As many as 150,000 students could still be waiting for payments - with 40,000 of these identified as being caught in a backlog. | As many as 150,000 students could still be waiting for payments - with 40,000 of these identified as being caught in a backlog. |
| This has prompted repeated complaints from MPs, students and college principals. | This has prompted repeated complaints from MPs, students and college principals. |
| The Learning and Skills Council has described the situation as "unacceptable". | The Learning and Skills Council has described the situation as "unacceptable". |
| David Collins, principal of South Cheshire College and president of the Association of Colleges, said: "If the contractor is to be changed, we would sincerely hope that it is a smooth transition and those students and parents who are still waiting for help get it as soon as possible. | |
| "They are the priority and they probably wouldn't be wishing Liberata a fond farewell. Colleges, who teach two thirds of 16 to 18-year-olds in education, would of course be ready to work with any new provider to help ensure young people get the support they need." | |
| Labour MP Gordon Prentice has put in for an adjournment debate next week on "the Administration of Education Maintenance Allowances". | Labour MP Gordon Prentice has put in for an adjournment debate next week on "the Administration of Education Maintenance Allowances". |
| Mr Prentice wants to raise concerns from constituents who had been hired to work in a Liberata call centre in his Pendle constituency. | Mr Prentice wants to raise concerns from constituents who had been hired to work in a Liberata call centre in his Pendle constituency. |
| The Liberal Democrats children, schools and families spokesperson, David Laws, says that action over the EMA delays is "long overdue". | |
| "The administration of the education maintenance allowance has been an utter shambles," he said - linking it to the problems faced with a contractor in marking Sats tests this summer. | "The administration of the education maintenance allowance has been an utter shambles," he said - linking it to the problems faced with a contractor in marking Sats tests this summer. |
| Some of your comments on this story: | |
| My son made his original application for EMA in May. We were sent a letter saying this had been received. In September we made enquiries as to progress and were told about the delays. In October we were told the application was lost and told to re-apply. Now told it might be a week or so until we know if the application is successful. Madness. Richard Broderick, North Shields Tyne and Wear | |
| My son's application was received on 18th September. His passport was returned on 1st November after several calls from us, followed on 7th November by a letter to say I had enclosed the wrong documents. He has since been told that his money may not be paid into his account untill after Christmas, as it will take 4-5 weeks to process the new documentation. As a divorced mother of 2 teenagers on a low income, I am finding it increasingly difficult to find the money for equipment, lunches and travel expenses. The customer advisors are either patronising or surly, and the whole process seems designed to be as difficult as possible. "Unacceptable" seems to be the mildest word I can possibly use to describe the situation.Diane McDonald, Barry, South Wales | My son's application was received on 18th September. His passport was returned on 1st November after several calls from us, followed on 7th November by a letter to say I had enclosed the wrong documents. He has since been told that his money may not be paid into his account untill after Christmas, as it will take 4-5 weeks to process the new documentation. As a divorced mother of 2 teenagers on a low income, I am finding it increasingly difficult to find the money for equipment, lunches and travel expenses. The customer advisors are either patronising or surly, and the whole process seems designed to be as difficult as possible. "Unacceptable" seems to be the mildest word I can possibly use to describe the situation.Diane McDonald, Barry, South Wales |
| I work in a college and the students are demented with EMA. Not only are there delays and lost contracts, but EMA have input many bank details incorrectly. Once EMA have corrected them, after a great number of calls by the student, they then ask the college to release the payments again, even though this has already been done. When you ring them up the staff are often rude and unhelpful. I can also see there being problems backdating payments to September, even though the delays are down to Liberata.Cath, UK | I work in a college and the students are demented with EMA. Not only are there delays and lost contracts, but EMA have input many bank details incorrectly. Once EMA have corrected them, after a great number of calls by the student, they then ask the college to release the payments again, even though this has already been done. When you ring them up the staff are often rude and unhelpful. I can also see there being problems backdating payments to September, even though the delays are down to Liberata.Cath, UK |
| To be honest i think everyone should be entitled to EMA if they are in full time education. Just because your parents earn JUST over £30,000 doesnt mean you are get a single penny of it. A pupil at my 6th form is on £30 a WEEK and he lives acroos the road. The money in for educational needs but i dont see why someone need £120 a MONTH to buy books and get to school. So the rest of the money just goes straight in his back pocket... Unfair if you ask me!Dan, Sussex | To be honest i think everyone should be entitled to EMA if they are in full time education. Just because your parents earn JUST over £30,000 doesnt mean you are get a single penny of it. A pupil at my 6th form is on £30 a WEEK and he lives acroos the road. The money in for educational needs but i dont see why someone need £120 a MONTH to buy books and get to school. So the rest of the money just goes straight in his back pocket... Unfair if you ask me!Dan, Sussex |
| I am supposed to be receiving an EMA payment worth £30 a week, but despite my application being accepted in early September, so far I have received nothing but vague, non-committing statements about my payments being made "before the end of the month". That "end of the month" was seven weeks ago.William Atkins, Reading, UK | I am supposed to be receiving an EMA payment worth £30 a week, but despite my application being accepted in early September, so far I have received nothing but vague, non-committing statements about my payments being made "before the end of the month". That "end of the month" was seven weeks ago.William Atkins, Reading, UK |
| I'm a Sixth Form student and whilst I don't have an EMA, several of my friends do. The problem is, I just can't fathom a justification for it as most have jobs anyway and although they've complained about not receiving it, they've managed to live without it. | I'm a Sixth Form student and whilst I don't have an EMA, several of my friends do. The problem is, I just can't fathom a justification for it as most have jobs anyway and although they've complained about not receiving it, they've managed to live without it. |
| Up to £30 a week per student is a little crazy - that's potentially £18,000,000 a week (at the very least £6,000,000) on something that doesn't really change anything. For the good of education, shouldn't all further education students receive a small benefit, particularly the ones showing most promise?Sid Roberts, Leeds, UK | Up to £30 a week per student is a little crazy - that's potentially £18,000,000 a week (at the very least £6,000,000) on something that doesn't really change anything. For the good of education, shouldn't all further education students receive a small benefit, particularly the ones showing most promise?Sid Roberts, Leeds, UK |
| EMA has really messed up this year. There are lots of people at the college i am at struggling to get back and fourth to the courses. If everyone could get the bus pass it would be great but they also limited who gets the bus pass. | |
| I have read several reports on here saying that they went to college years ago and could live without EMA and they had a job, Guess what? To get a job now its hard. FULL STOP. But at 16 with no experience and with the Government saying they want young people to stay in education. Its getting even harder! EMA really need to get to grips with this. Or people are going to take legal action and that could cost them more than taking the time to sort it out. Z Johnson, Wolverhampton | |
| I am in my second year at college and there have always been problems with EMA payments since i first started. I started my 2nd yr at college at the beginning of September and have only recieved 2 random payments, even though my application for EMA was sent well in advance of my course start date. | |
| You're far too busy giving money to those on benefits who don't do anything, why not help the people out that want to educate themselves further! Charlotte Allen, Leicester | |
| In my opinion EMA is quite often a gross missuse of funds. A lot of people I knew at college got £30 a week, free travel, free meals from the college and their books paid for by the college finance service. So where does this £30 a week go? Nights out, alcohol, cigarettes and clothes. Whereas my parents earn over the EMA threshold, therefore I didn't recieve a single penny of EMA, nor did I recieve any money from my parents. I got a part time job and worked from 9-7 every Saturday and Sunday on minimum wage to earn money to fund my social life, and any luxuries such as new clothes that I wanted. Can anyone see the justice in this? ... | |
| Emma, London, UK | |
| I don't understand what all the fuss is about, when I was at college I had a part-time job at the weekends and earned over £30 a week (as did all of my friends) and worked in the holidays, this was over ten years ago so students would only have to work for 5-6 hours a week to earn £30 with the increase in minimum wage. | |
| The EMA encourages laziness, if students are struggling for money it's no use moaning about it, get a part-time job.Louisa Wallace, London, UK | |
| I'm a student adviser at a Further Education College. The EMA crisis has hit our students very hard. We currently run an emergency fund for these students meeting hardships - the college knows we won't get most of this back, but it is necessary to keep our students in education. | |
| Not only was the delay in processing a major issue, the latest system EMA provide for the college to input data is a disaster also. It is taking 2 days to input what it would have taken an hour to do on the old system. Ridiculous! Surely next year it can only get better!Josie, Southend On Sea | |
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