In his pre-Budget report speech Chancellor Gordon Brown said the Government will consult on a new path to entry to university in which students volunteer in return for a reduction in tuition fees.
A Treasury spokeswoman said the plan is being developed with youth volunteering charity v, and will be open to 18- to 25-year-old students.
Participants will commit to a 40-week volunteering placement in a youth service, childrens service, or school, over the course of a year. In return they will get up to 3,000 off their tuition fees, and up to 60 a week to help with living expenses.The scheme is due to begin in autumn 2007.
The report also contains measures designed to increase the number of young people going into further education and employment.
The Treasury said it would consider expanding the pilot activity agreements and allowances, which give disadvantaged 16- and 17-year-olds financial support if they move into education.
It is also extending the Job Grant to 18- to 24-year-olds who have been claiming benefit for 26 weeks or more. This gives a one off payment of 250 to cover the cost of starting a job.
The Children and Young Peoples Review, which was due to be published alongside the pre-Budget report, will not now be published until next year. The pre-Budget report says the youth service strand of this has so far identified the need to remove barriers to participation in activity, improve what is available, and involve young people more in design and development of activities.
Brown promised significant investment in primary and secondary schools, saying a typical secondary would see its budget increase from 150,000 in 2006 to 200,000 in 2007.Geethika Jayatilaka, deputy chief executive of charity 4Children, said: The money for schools is welcome. But we have to make sure that it is spent on more than just what goes on from nine till three. There is a whole broader agenda here.
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