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Payments for 16 to 18-year-olds in sixth form or college is to increase by £10 a week, the Welsh Government has announced.
The Education Maintenance Allowance (EMA) will go from £30 a week to £40.
The weekly increase will begin this month, Wales’ Education minister, Jeremy Miles, has announced.
The grant is to help those from low income households with the costs of further education.
Students are eligible if their annual household income is £20,817 or less if they’re the only young person in the household. The rate rises to £23,077 if there is more than one young person in the household.
Across Wales, roughly 16,000 further education students receive the payment, which is paid every fortnight.
The £40 payments will remain over the next two academic years while the Welsh Government carries out a ‘comprehensive review’ into EMA.
Meanwhile, Mr Miles also announced free appeals for students from economically disadvantaged backgrounds taking general and vocational qualifications this summer.
Mr Miles said: “In Wales we have continued to protect the Education Maintenance Allowance, with the increased payment helping with the reality of the cost of learning for students.
“We appreciate that the rate of EMA has not increased for some time, and during the current cost-of-living crisis, we understand young people are also feeling the financial strain.
“While we work to undertake an independent review of EMA, this raise will provide additional help to remove barriers to learning.”
He added: “EMA and the free appeals system for students taking exams are part of a package of support we provide in Wales to eligible students. I would encourage young people to find out if they qualify.”
Orla Tarn, the president of the National Union of Students Wales, welcomed the announcement but said: “There is still lots of work to do to address the cost-of-learning crisis.”
“Any review of EMA should be grounded in how best to equip further education students to reach their full potential in our education system and I look forward to working with the Welsh Government to ensure that student voice is at the heart of decision making.”
Caerphilly’s Labour MS Hefin David said: “There are currently 1,170 learners in Caerphilly who benefit from EMA.
“This increase will help support these learners stay in education through these tough times by increasing their funds for things like transport and food.”
He added: “It is very important that access to education isn’t impacted by financial restrictions. Further education is not only for the wealthy.”
Plaid Cymru’s education spokesperson, Luke Fletcher MS, has called for EMA to rise with inflation – which he said would equate to around £54 a week.
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