Tories plan £2,000 gift for science graduates

Students who complete science and maths degrees would be given a £2,000 cash windfall under a Tory government, Michael Howard is due to announce today.

The £20 million scheme, paid for by scrapping the Government's new university regulator and other red tape, would see the cash paid on graduation.

Under the plans, 10,000 bursaries will be offered for engineering, maths, physics and chemistry to help students pay off their loans.

In a speech today, Mr Howard is expected to say that a major cash incentive for such courses was the only way to halt their increasing unpopularity.

"Areas like maths, physics, engineering and chemistry are struggling to attract good students, and some universities have even closed departments because of the lack of interest. The next Conservative government will tackle this decline," he is due to say.

The plan will cost £20 million per annum from 2009 onwards. The money would be found by abolishing Offa, the Government's new controversial regulator, saving ?500 million a year, reducing the administration budget of the university funding body by £8.4 million per annum, and scaling back the university inspection regime and other bureaucracy.