Thousands to lose bonuses for staying on at school

Published on Wednesday 13 May 2009 22:05

MORE than 10,000 teenagers are to have cash payments for staying on at school scrapped under new government plans.

At present, 37,000 Scottish pupils aged 16 and 17 receive 10, 20 or 30 a week for remaining in education.

But that total is to drop by between 10,000 and 11,000, as the means-tested payments of 10 and 20 are cut completely.

Last night, Labour said

the revised SNP scheme fell "incredibly short" of the aim of ensuring that everyone under 18 had a learning, training or job opportunity.

Claire Baker, Labour's further and higher education spokeswoman,

said: "This SNP government is just not reacting well enough to the recession Scotland faces, and it is our young people that are suffering.

"These plans were thought up before the worst effects of the economic downturn hit Scotland, and they are simply now the wrong thing to do."

Although she backed new pilot schemes, she added: "This is very worrying indeed, especially when these cuts come in the face of an economic downturn."

It is expected about 27,000 students will still receive cash. The 30 payments will remain and the income threshold for parents will rise, meaning up to 1,000 additional teenagers from the poorest backgrounds will be eligible. A total of 6.3 million saved from the Education Maintenance Allowance (EMA) next year will go to help unemployed youngsters.

Fiona Hyslop, the education secretary, said the scheme would ensure money was targeted at those who needed it most.

She said: "This government is committed to providing more choices and more chances to those who leave school early.

"I am passionate about improving the life chances of all young Scots, and improving the destinations of this group is crucial."

The scheme had previously been criticised as many of those in receipt of the lower payments would have stayed on at school anyway.

Cash saved by the cuts will be used for pilot schemes starting next month in ten council areas to help those out of work and not in education or training to find charitable or voluntary placements.

Those receiving EMA payments under the current system will not find their cash cut, but many of those applying for the first time later this year will no longer qualify for the cash.

At present, youngsters with a family income of below 21,835 get 30 a week. Those with a family income of between 21,836 and 26,769 receive 20 a week, and those with family incomes of between 26,770 and 32,316 are given 10. Above that income level, no allowance is paid.

Under the changes, the 10 and 20 allowances will no longer be paid. The maximum income for the 30 award will be lowered to 20,351 to bring it into line with college bursary thresholds.

But a higher ceiling – 22,403 – will apply to families with more than one youngster in education, meaning up to 1,000 who did not qualify before will now do so.

KEEPING TEENAGERS OFF BENEFITS

FROM next month, the Activity Agreement pilots will run in ten local authority areas – Fife, Glasgow, Highland, Inverclyde, North Ayrshire, North Lanarkshire, South Lanarkshire, Renfrewshire, Stirling and West Dunbartonshire.

The theory is that as jobs for school-leavers dry up in the recession, voluntary or community work could keep 16 and 17 year-olds off benefits. In the pilots, councils will work with partner organisations such as charities and community groups to provide youngsters with opportunities to learn and help society.

Education secretary Fiona Hyslop announced the scheme at the Edinburgh HQ of Inspiring Scotland, which was set up last year to find ways of getting the country's 32,000 unemployed teenagers into work.

Youth unemployment is estimated to cost the UK 8 million a week in benefits and lost earnings.