SKIPTON Building Society is to help finance local students from low income families through university.

The society this week launched a unique scholarship scheme which aims to help 42 students every year, paying up to £2,000 towards tuition fees or living expenses.

The scholarship, inaugurated to mark the society's 150th anniversary in May, was hailed by education chiefs as a "significant and unique gesture".

It would help tackle the problem of high fees and student loans, which deter people from low income backgrounds from going on to higher education.

The scheme is open to young people in Craven or Richmondshire who can demonstrate the potential to study at degree level.

For the 2003-4 academic year, 42 awards are available - 20 for students entering university and 22 for students entering sixth form study at school or college.

For university students the SBS scholarship offers £2,000 per year for the duration of the course if they attend Leeds or York Universities and £1,000 per year at other universities.

For students in year 12 or 13 at school or college, it offers organised visits to Leeds or York Universities and £500 a year for a maximum of two years.

In order to qualify, the applicant has to live in Craven or Richmondshire, be under 21, have parents with a joint taxable income of less than £12,500 and not be receiving any other scholarship.

John Goodfellow, the society's chief executive, said that the rules would be flexible as the idea was to encourage as many young people as possible to take up higher education courses.

For example, applications will be considered if parental income exceeds £12,500 and there is little or no experience of higher education within the family, or the applicant is from a single parent family. Other eligible applicants could be those in, or leaving, care.

The scholarship will not affect any student loan.

Mr Goodfellow said although the society had committed itself to the scheme for five years "I believe the success of the scheme will be such that the scheme will last for ever."

He outlined the society's commitment to the community in which it operated, adding that it was in its own interest to raise the educational standards of the local work pool from which it recruited.

"We see ourselves as very much a part of the community and this addresses one of the areas we have to deal with - rural deprivation," he said.

The scholarships have been finalised over some time but Mr Goodfellow said it was fortunate that the launch came just after the Government had announced its proposals for higher education.

Jeremy Walker, chief executive of North Yorkshire County Council, described the scholar-ships as "new, imaginative, immensely important and community focused".

He added: "In places like the Yorkshire Dales we have essentially a beautiful place but a low wage economy and that creates conditions where it is difficult for young people to compete in the local housing market and difficult to hold communities together.

"The way to get through that is to attract young people who will bring higher value-added jobs, but they will not do that unless there are highly educated, skilled people available who will fill those jobs."

Professor Sir Alan Wilson, chancellor of Leeds University talked about the importance of higher education for the economy, society and individuals.

It was clear that a university education would be more expensive for students but the SBS's imaginative scheme would help address the problem of rural deprivation, he added.

Application forms will be available from schools and Craven College from March and have to be returned by the end of May.

Further details are available from North Yorkshire's student support officer, Kevin Tharby, phone 01609 532225 or e-mail kevin.tharby@northyorks.gov.uk