A £5M pilot scheme to reintroduce lodging grants for college students could benefit up to 200 young people from the Yorkshire Dales.

The move by the Government was welcomed by community figures concerned that changes in the system in 1999 had disadvantaged would-be students from deeply rural areas.

The scheme applies to the academic year beginning next month and offers grants of up to £3,000 to cover the cost of accommodation for students who live at least 25 miles or one hour's journey from their further education college.

In 1999, funds formerly allocated to education authorities for lodging grants were diverted to the colleges themselves.

Coun John Blackie, who represents the upper dales on North Yorkshire County Council, said colleges serving the county were given insufficient funds to pay for lodging grants, causing serious disadvantage to people from his area who wished to continue their studies.

He welcomed the Government's change of heart and urged students to apply immediately for the coming year.

"It is a first come first served basis and the £5m covers the whole of England so it is important that people apply as soon as possible," said Coun Blackie.

The final decision on allocation of grants lasts with the Learning and Skills Council and applications must be made through the intended college.

"Over 200 lodging grants a year were funded by the county council until the funds were snatched away by central government," said Coun Blackie. "Many dales youngsters denied by distance access to colleges on a daily basis lost their chance of career advancement because of this diversion.

To qualify for a lodging grant, students must attend a full-time level three course - As/A2, AVCE or equivalent - and be unable to travel daily. Grants are subject to assessment of parents' incomes, which must be less than £30,502.

Application forms should be available from colleges but Coun Blackie said anyone having difficulty getting access to the process could contact him on 01969 667123 for help.