ALL university and college students would be guaranteed a Scottish Living Wage of £8,100 a year under radical plans to transform financial support in the sector

The proposal, which could cost more than £400 million, is being considered by a review group set up by the Scottish Government to look at improving student support.

Currently, university students can borrow up to £5,750 to help pay living costs, but support for college students is much lower.

Published minutes from the review suggest a system where all students have access to a “living wage” or “minimum income” under a new student payroll system.

Students would receive payments much like employees do a salary, but would have to attend classes in return - or provide evidence that they were unwell if they were absent.

It is unclear how such a significant increase in support would be funded with divisions over whether the government should use bursaries, loans or a combination of both.

Minutes from review group meetings, chaired by Jayne-Anne Gadhia, chief executive of Virgin Money, highlight the suggestion that a “progressive society” should consider all students as employees.

The minutes, which refer to her as JAG, state: “JAG suggested that ... it could be considered if students should be paid the living wage. In financial terms ... this would mean a total annual sum of £8,100.

“JAG noted that this option would require significant additional funding, in excess of £400m for all students and £200m if current means-tests remained in place.

“She suggested that means-testing remains the fairest option to ensure that the poorest students receive maximum funding available.”

The minutes reveal a tension over how such a guaranteed income could be paid for - partly because any increase in use of loans would lead to more student debt.

In addition, the review group has been told that, while the Scottish Government expects it to be ambitious, they should also be mindful of public sector spending constraints.

The minutes state: “JAG went onto say that she proposes that the review should not recommend whether students should be financed via loans or bursaries, but rather based on a proposal of the total sum a student requires to fund their studies.

“She said that it is a political decision on whether funding should be sourced via loans or bursaries.”

Representatives of student body NUS Scotland attending the meetings welcomed the proposal with Philip Whyte, who has now left the organisation, stating that it formalised the “social and economic good of education”.

The minutes state: “Philip also said that it is NUS view that current thresholds for means-testing support could be more progressive, but if this option goes forward then he believes the review to be in a good place.

“He further commented that it is a political decision on overall funding

requirements, but that the review group shouldn’t absorb that

decision into their work given they are not an implementation body.”

John Kemp, interim chief executive of the Scottish Funding Council, said it would be “considerably easier” to fund additional requirements through loans.

The minutes state: “John further said that the group cannot be blind to funding sources and would be concerned that university and college funding could be impacted if increased funding was required for the student support system.

“He said he was comfortable with additional funding requirements being met through the use of student loans."