MP Gordon Prentice has secured a House of Commons debate on the educational maintenance allowance system – which resulted in a major jobs fiasco in Nelson.

Thousands of students nationwide have been left without the £30 weekly payments after delays in their administration.

Around 100 workers were taken on by ‘back office’ specialists Liberata to process the handouts, at Number One Market Street in Nelson, only to be told five weeks later their services were no longer required.

Now Commons speaker Michael Martin has granted the Pendle MP an adjournment debate on Tuesday to discuss the fallout, with a response expected from Schools Minister Jim Knight.

Mr Prentice, who has also raised the allowances problem at Prime Minister’s Questions, said: “Although Liberata has now lost the contract from the Learning and Skills Council, there are lessons to learn.

"There are things that need to be said about the whole deplorable episode.”

Pendle council bosses were annoyed that Liberata, which provides support services for the authority, failed to notify it about the EMA job losses.