The EMA fund was £575m in 2010 and its replacement was due to be two-thirds smaller at £180m in 2012. However when colleges were informed of their bursary allocations for 2011 the total amounted to just £115m.
The lost funds, which will be used to fund transition payments for students who have previously received EMA but now will not, could see some colleges unable to cover guaranteed payments for the poorest students.
Liam Burns, NUS President, said:
“Further cutting support for the poorest college students, at a time when job and study opportunities are few and far between, is a massive mistake"
“Many in the Government claim EMA was simply an unnecessary incentive. It was nothing of the sort. Many of the poorest students rely on small regular payments to cover costs like travel, food and books that allow them to stay in education and improve their life chances. EMA represented a lifeline for the poorest students.
"The removal of EMA is one of the most short-sighted policy mistakes this Government has made and an even greater reduction to this year's budget will see colleges struggle to provide support for those students most in need.
"We are hugely concerned about the discretionary nature of EMA's successor. A first come first served post code lottery masquerading as effective financial support is a disaster for students, dangerous for colleges and a significant mistake by the Government"