Inflationary increases and income thresholds 2008-09
12 October 2007
To: Principal contact for OFFA / Managers responsible for access agreements
The full details of the income thresholds for eligibility for the grant and the inflationary increase that will apply to fees, loans and grants was announced in Parliament earlier this week. A summary is set out below for information:
- the level of support for fees, loans and grants that will be available to eligible students in the 2008-09 academic year will be 2.5 per cent higher than for 2007-08, in line with forecast price increases
- for students who entered higher education on or after 1st September 2006, and are being charged variable fees, the maximum fee payable will increase from £3,070 to £3,145 in 2008-09. The increase to the fee will be matched by a corresponding increase to the loan for fees that students can take out
- the level of Higher Education Maintenance Grant/Special Support Grant that is available will rise to £2,835
- the income thresholds for eligibility for the grant for new entrants in 2008-09 will rise to £25,000 and £60,005
- the income thresholds for eligibility for the grant for students who were new entrants in 2006-07 or 2007-08 will rise to £18,360 and £39,305
- for students who are not being charged variable fees (primarily students who entered higher education before 1st September 2006), the maximum fee payable will increase from £1,225 to £1,255.
Full details are available in SSIN 01/08 on the DCSF website.
OFFA guidance
Institutions are reminded that the minimum bursary requirement must increase to ensure that it meets the difference between the level of full Higher Education Maintenance Grant and the fee charged. For example for institutions charging the full fee of £3,145 in 2008-09, the new minimum bursary requirement will be £310.
Our note of 2 August 2007 stated that all institutions should review their access agreements for 2008-09 to ensure they remain clear and accurate, and some institutions might want or need to amend their agreements in light of the new eligibility thresholds.
Regardless of whether bursary arrangements need to be revised, all institutions will need to provide OFFA with an amended financial return showing estimates of income and expenditure.
In addition, all institutions will need to ensure that they inform OFFA of their inflationary increases to fees, bursaries and eligibility for 2008-09 if not done within amendments to the access agreement.
We originally asked institutions to submit these returns and any amendments to agreements by 31 October 2007. However, in light of the delay in the DIUS announcement we are extending the deadline until 16 November 2007. If this deadline is problematic for you please contact us.
Any amended agreements and returns should be sent to accessagreements@offa.org.uk
If you have any queries about the process for submitting a new or revised access agreement please contact Jean Arnold, or Richard Smith, enquiries@offa.org.uk or tel. 0117 931 7171.