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It had previously been temporarily set at 6.08 per cent.Around 115,000 households were affected by this change3.
From 1 October 2010 the interest rate level was set at the Bank of England’s published monthly average mortgage interest rate, around 3.67 per cent.
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The average loss of £11.30 to claimants has been estimated by dividing Treasury’s expected £65m per annum saving across the number of households.
Educational maintenance allowance was a means-tested financial payment made to 16–19 year olds in full time education or unpaid work-based learning to meet educational costs. Previously, students from households earning below £20,817 per annum were awarded £30 a week, students households earning between £20,818 and £25,521 were awarded £20 a week and students from households earning between £25,522 and £30,810 were awarded £10 a week.