Government hints at u-turn on abolished maintenance grants for poorer students

Universities have warned the loss of grants deters poorer students from higher education

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The Government is preparing to make another u-turn by bringing back maintenance grants for poorer students, reports suggest.

Education Secretary Justine Greening is said to be increasing pressure on the Treasury to find funding for the grants, which were abolished in England last year despite concerns from universities over the impact on students from disadvantaged backgrounds.

"We don’t think it is right that the poorest students come out of university with most debt,” a senior Department for Education (DfE) source told the i.

Insiders hinted that the proposals, which would cost around £500m, could feature in next month's Budget but separate sources said the plans were not that advanced, the newspaper reports.

Former Chancellor George Osborne abolished grants - worth around £3,500 - in favour of additional loans which could be paid back at the end of the course.

It comes after Theresa May opened the Tory conference in Manchester with a climb down on tuition fees, where she pledge to freeze fees at £9,250 per year and scrap a planned £250 inflation rise.

Amid pressure from Jeremy Corbyn - whose party has made eye-catching promises to scrap fees altogether - the Prime Minister also vowed to cut costs for low-earning graduates by raising the repayment threshold from £21,000 to £25,000.

She has also promised a “review” on the wider issues around student funding, as the Tories attempt to ramp up its appeal to young voters.

However Universities minister Jo Johnson attracted criticism when told a fringe event at the party conference in Manchester that students should “live very modestly and have a frugal existence” if they run out of money.

The Department for Education declined to comment.