Last week's lead story in Pugwash News, published also on the UPSU.net website, claimed in its headline that £262,000 of Portsmouth students' money was missing.

The article further claimed that similar funds were failing to reach students across the Higher Education sector and quotes the NUS Vice President Education by saying that this money was "lining the pockets of vice chancellors".

Pugwash News apologises unreservedly to the Vice Chancellor, Professor John Craven, the University and its officers for the implication that they were in any way misappropriating student bursary funds. The Students' Union accepts that the article is misleading and that any suggestion that the money is not accounted for is incorrect.

The University of Portsmouth issued the following statement:

"The money to which you refer is most certainly not missing. It is definitely accounted for, in the bank. It is the result of the difference between a generous estimate of what might be required to service the bursaries (to ensure that everyone who is eligible and who applies would receive one) and the actual take up of these bursaries.

"This money will be held for a further two years while the take up of student bursaries is assessed; if following this period there remains a surplus, the money will be spent on student support.

"The University has run a very active campaign to make students aware of their eligibility and encourage them to apply; this has included contacting some 500 students and their families personally.

"Our Student Finance Centre has been active in this work which contributed to it receiving the THES Outstanding Student Financial Support Package Award at the end of last year.

"In addition to the extension of our bursary offer in 2008/09 to reflect the changes to the state support also offered to students, the University has a number of financial packages in place for students which would suggest an institutional awareness and willingness to help those students who need it most.

"These include additional bursaries for students from local colleges, a hardship fund for those who demonstrate need during their period of registration at the University (particularly for those who narrowly fail to qualify for other bursaries), and a Care Leavers-Foyer-Sheltered Accommodation Bursary.