NEWPORT’S university says cash earmarked for emergency grants for needy students has been slashed by more than half by the Assembly this year.

Figures from the University of Wales, Newport, show that while in 2009/10 it was given £485,955 for emergency hardship grants, in 2010/11 it has received just £174,669.

Lawrence Wilson, the university’s head of student services, said the university’s allocation was almost used up for the year and that they would have to turn students away for the service.

Hardship grants, funded by the Welsh Assembly Government, are offered to students who need extra financial help, such as those with children, disabled students and final year students unable to work.

The cash is also used to fund bursaries for some students’ child care costs, and course and accommodation costs for students on art foundation courses.

For the 2010/11 financial year the WAG announced that the pot of cash, known as the financial contingency fund, would be cut for all Welsh universities by £3 million to £2.1 million.

So they can keep the grants at the same level as previous years, Newport officials have decided to reduce the number available.

According to the University’s figures, 650 applications for grants and 94 bursaries funded by the FCF were made in 2009/10, with an average award of £622.

So far the current year 507 applications for grants and 32 bursaries have been processed. Mr Wilson said the majority of applications made in both years will have been approved.

But he added: "Our allocation is almost used up for the year."

Although some students will have to be turned away for cash from the FCF, Mr Wilson said they will not be left “in a vacuum” and will be offered help from student financial advisors.

Grants from a university administered fund of £58,000 may also be available.

A University spokesperson added: "The University has in place its own schemes of student support as well and we are working to maximise this - as illustrated by the increases given to these schemes in the last two years."

The Assembly government said the FCF support has been reduced following changes to student support, including the introduction of no up-front fees, increases in the Assembly learning grant and bursaries from universities themselves.