The decision by the Department of Education to pay grant funds to local authorities in advance of payment to students has been welcomed by student representatives.

Previously, local authorities were required to pay grant recipients out of their own funds and then seek reimbursement from central government funds. From 1998, local authorities will receive this money in advance, removing one of the obstacles which may have prevented local authorities from making grant payments to students on time. Some £68 million will be transferred to enable payments to be made to local authorities on a current rather than retrospective basis, with the stated aim of improving efficiency and facilitating earlier payments.

"It's an excellent development," says USI's welfare officer Malcolm Byrne. "It means local authorities will get the money in advance and won't have an excuse for late payments as a result. It's a very positive development by the Minister."