Torbay MP Adrian Sanders has been raising with Ministers continuing concerns over the Education Maintenance Allowance (EMA). The benefit was designed to encourage 16 to 18 year olds to stay on in further education, taking A-levels or partaking in vocational training.
The scheme responded to years of failure by successive governments to encourage greater education participation without resorting to financial inducement. While evidence suggests 18,000 more students are taking part in education, EMA is paid to over half a million young people, who can receive up to £30 per week.
The scheme is likely to cost the taxpayer £438million in 2008/09.
The system is highly bureaucratic, with well over 10% of the budget spent on administration. The Government outsources this administration to private firms, with the Liberata firm holding the contract until recently, holding sway over a system with excessive backlogs, unanswered phonecalls from applicants and non-payment of benefits.
Young people in Torbay have also contacted Mr Sanders to highlight the injustice of the system. The benefit is not linked to attainment at school or college and the exclusion of children from wealthier backgrounds is highly divisive, particularly as the Government assesses according to gross rather than net income.
Adrian commented: “For years the Government has failed to encourage hard to reach youngsters about the overwhelming benefits of education, whatever form it takes. EMA is a last and costly resort but it gets results. The Government needs to iron out the system though. Too many young people have had delays in getting payments through.”
“Once again the reliance on outside contractors has created a bureaucratic nightmare and it seems Labour will never learn this lesson. The allowance also needs to be reoriented to encourage students to reach their potential, rather than simply attending registration.”
“One of the biggest problems highlighted by youngsters in Torbay was the divisiveness caused by the eligibility criteria. The means test is very rough and ready, based on the previous year’s income for any family. The system also assumes that those from lower income families lack the inclination to study whereas those from higher income families will automatically want to. Most importantly it does not take account of the actual circumstances of any given family.”
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