Labour’s confirmation at its party conference that it intends to retain its commitment to a “genuine” Living Wage could have major implications for student finance.
As it stands, the “National Living Wage” (a rebadged National Minimum Wage) is determined off the back of a recommendation by the low-pay commission. Unlike the “Living Wage” from the foundation that shares its name, it doesn’t take into account the rising cost of living.
The anchoring of student finance entitlements to the NLW has nevertheless seen students from Wales on a much higher core entitlement to maintenance loans than counterparts, as we’ve discussed on the site before – we’re heading towards a £2.5k difference this time next year.
If an incoming Labour government was to switch to the Living Wage as its basis, that would have resulted in the core (away from home, not London) headline amount this year for students from Wales at £12,263 – a £543 uplift, and some £2,285 more than the poorest students from England can pull down this year.
