Firm sacked after students fail to receive grants

Liberta the company responsible for providing low income students with financial incentives to stay in higher education, has had its contract terminated five years early.

Over 10,000 students are still without their allowances because of administrative errors by the company.

Shadow schools minister Nick Gibb criticised the government over the failures.

“Yet again, Ed Balls’s department has presided over the shambolic administration of services that directly impact on children’s education,” he said.

“If anything, this latest debacle is the most damaging yet as it directly undermines the educational prospects of some of the poorest children in the country.”

Around 600,000 teenagers aged 16 to 18 from lower income families currently get allowances of up to £30 per week as an incentive for them to stay in higher education.

Liberta’s contract worth £60 million has been given to the firm Capita.