£1,000 boost for tech and science students?

The Confederation of British Industry (CBI) has said undergraduate students need a greater incentive to study science and technology in order for the UK to combat its skills shortage.

A £1,000 'golden carrot' annual bursary has been mooted by the organisation, for students taking science and engineering degrees, costing around £200m per year.

The CBI said urgent action is needed to reverse the long term decline in the study of science, technology, engineering and maths (Stem) subjects and to address the needs of the UK's evolving economy.

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CBI research found 80 per cent of engineering and industrial companies have trouble filling posts while 67 per cent of utility companies expect a shortfall this year.

Graham Love, CEO of defence technology and security company QinetiQ, said Stem skills are vital to the company's commercial success and underpin its ability to tackle some of its greatest challenges.

He added that QinetiQ has seen the number of applications per graduate vacancy halve over the last five years.

The CBI has a five point plan aimed at achieving a target of 2.4 million workers qualified in these subjects by 2014, which includes careers advice to challenge misconceptions about science and engineering courses.

At present, just eight per cent of GCSE students take three separate science courses, which the CBI hopes to raise to 40 per cent.

The body also wants to raise the proportion of students taking A-Levels in at least two sciences - or one science subject and maths - to 25 per cent and double the percentage of students studying Stem subjects at university.

CBI director-general Richard Lambert said the problem of getting the right talent is likely to worsen so there needs to be a focus on higher skilled and expert roles for the UK to thrive in the global market.

He added bursaries would only be "part of the fix" as other issues such as a pared-back curriculum, a lack of specialist teachers and varying classroom facilities are also to blame.