Gap-year sweetener

Teenagers are to be given a discount on their student loans in return for a year of voluntary service.

Ministers are working on a scheme to reduce the cost of university in return for students helping their local community, the Evening Standard has learned.

Instead of touring the world's beaches, school leavers would be encouraged to stay in Britain to take part in projects assisting the elderly, disabled and the environment.

Latest figures show that taking a year off between school and university is more popular than ever, with a record 26,400 (eight per cent) of all students deferring entry in 2003/4. Gap-year numbers have soared by 30 per cent in the past five years alone.

A further 20,000 graduates take up to a year off after finishing their studies, and ministers believe that together with gapyear young people they provide a ready-made "army" of volunteers that needs to be tapped.

Chancellor Gordon Brown is determined to boost volunteering on a huge scale, while the Prime Minister firmly believes that helping others is a vital way to restore a sense of civic duty and citizenship.

As a central part of Labour's hopes for a third term in office, the policy is likely to be included in the party's manifesto at the general election.

One Whitehall source said: "There's no problem with [ schoolleavers] taking time off, because they often come back better prepared for study.

"But it's a real shame when many of them spend their time on the beach or lounging around when they could be giving something to their community."

Under the proposed scheme, a student's debts would be partially written off if they sign up to and complete accredited schemes in the voluntary sector.

The policy may also be opened up to recent graduates looking for a way to ease their debts. One further radical idea is to extend the scheme to pensioners, who could get national insurance relief or tax credits in return for volunteering.

Ministers believe that gap-year teenagers could benefit hugely if they get involved in projects such as helping children with learning difficulties, refurbishing local buildings and even clearing litter from beauty spots.

Volunteers would not be forced to spend the whole year in the scheme and would still have plenty of free time to travel, but it would provide invaluable manpower-for some current projects. Thousands of teenagers already take part in voluntary work but many more do not, and Mr Brown and Home Secretary David Blunkett are particularly keen to find a way to get teenagers from deprived backgrounds involved.

It is understood that the idea will be assessed in detail by the Russell Commission, a group set up by the Government this year to find ways of making volunteering more widespread.

Its first consultation document will be produced in October but ministers are keen to develop its proposals quickly, with a view to implementing them soon after next spring's general election.

Ministers have been impressed by US presidential candidate John Kerry's plans for a nationwide citizenship programme.

A spokesman for the National Council for Voluntary Organisations said: "Any government initiative that encourages volunteering would be very welcome. But we would have to see the details."

Justin Davis-Smith, research director for Volunteering England, said that feedback from young people showed financial incentives could help attract those from poorer backgrounds. "Any scheme that attracts more people to volunteer, we would support," he said.