Hundreds of college students in an Essex town are set to receive a one-off £360 cash payment to help them stay in further education – funded through the UK Shared Prosperity Fund.
Last week, the leader of Basildon Council announced an “education essentials grant” scheme that will pay £360 to up to 360 students to help with travel, food and study materials.
It will be funded using £130,000 from the £2.6 billion UK Shared Prosperity Fund (UKSPF), which was designed to boost levelling-up through skills, businesses and community projects and replaced European Union funding in 2022.
All payments will be made by March 31 which is the annual deadline for UKSPF spending.
Basildon’s use of its £1.2 million share of the fund to pay students appears to be a national first, as projects elsewhere target the economically inactive with tailored support or specific training such as digital, English or maths.
However, helping young people to stay in education may align with UKSPF objectives set by the previous government – of increasing employment and the number of people completing “high-quality skills training”.
A Ministry for Housing, Communities and Local Government spokesperson said the scheme could reasonably be supported under UKSPF funding rules.
But critics say one-off payments like this were never the intention of the fund.
‘Lack’ of sixth forms
Leader of Basildon Council Gavin Callaghan said he developed the scheme after hearing that a “lack of sixth-form education” in Basildon was forcing low-income families to fork out for buses to nearby towns.
He compared his education essentials grant, which will be available to children with a parent claiming Universal Credit, to the education maintenance allowance which he said was “cruelly scrapped by the Tories”.
Basildon Council said the “bold” scheme would address “shocking statistics” that showed local education levels were behind national standards.
Basildon Council’s district has an estimated population of 187,000 and includes nearby towns Laindon, Billericay and Wickford.
Basildon, the largest town, has two South Essex College campuses specialising in construction, engineering and IT. It has only one sixth form while Wickford and Billericay both have two.
The £360 grant, equivalent to £15 a week, would not fully cover the £27 needed for a weekly bus pass between Basildon, its nearby towns or Southend-on-Sea.
Local flexibility
Local authorities ultimately have responsibility for spending UKSPF allocations, although the government requires them to submit investment plans and sixth-month reports.
Some councils and metro mayors have reported underspends due to the design of the three-year scheme, which has been beset by complexity, cash delivery delays and rule changes.
Published in 2022, Basildon’s original investment plan contains no reference to an education grant. The council has not published an update since the plan was approved in December that year.
MP Lauren Edwards, who previously oversaw UKSPF spending when she was a Medway Council cabinet member and is a strong supporter of the scheme, said: “What is important is local areas having the flexibility to use funds like the UKSPF to address local needs, which Basildon has clearly identified.
“Their approach sounds very like the education maintenance allowance, which was a landmark Labour policy sadly scrapped by the coalition government as part of austerity measures.
“If we had an underspend in Medway it would certainly be something I’d suggest looking into.
“It’s good for local authorities to share best practices amongst themselves and with new ministers who are looking at what local growth funds should look like in the future.”
Stephen Evans, chief executive of the Learning and Work Institute, welcomed Basildon Council “testing new approaches” in tackling financial barriers to staying in education.
He said: “It will be important to target this where help is needed most, make sure other practical support is available too, and effectively evaluate the scheme so we know if it’s making a difference.”
‘Spending spree’
However, Ian Ross, who delivers UKSPF-funded schemes for several local authorities, said: “Whilst the £360 will no doubt be welcomed by the families who receive this payment, this was never the intention of the UKSPF, nor was this included in Basildon Council’s UKSPF investment plan.
“With record numbers of young people economically inactive across the South East, it is a lost opportunity for more targeted investment in programmes to re-engage young people who are not in education, employment or training, rather than focusing this spending spree on those who are already engaged.” Basildon Council did not respond to requests for comment.
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