The loss of one hundred Nelson based jobs administering the Educational Maintenance Allowances (EMAs) for thousands of students nationwide has been described as "baffling" by local MP Gordon Prentice.

The contract to handle EMAs was given to Liberata, a company specialising in providing back office functions for local authorities.

Yesterday, the MP pressed Education Minister, Jim Knight, to spell out the consequences of the axing of the jobs for the payment of EMAs to students. Reports suggest some students are dropping out of college courses as they wait for the cash life-line to come through.

Last month, Pendle Council’s Chief Executive, Stephen Barnes, told the press that the Liberata deal was a "fantastic example of Pendle council bringing more jobs to Pendle".

Speaking from Westminster, the MP said "The Liberata jobs were announced with a great fanfare only a short time ago. I am in touch with the Acting Chief Executive of Liberata, Richard Webster, to find out why everything seems to be going pear shaped."