I move: "That the Bill be now read a Second Time."
The purpose of this Bill is to amend the Local Authorities (Higher Education Grants) Acts, 1968 and 1978, so that a number of new and significant provisions concerning, in the main, mature students, can be made in the higher education grants scheme for 1992 and subsequent years. The higher education grants scheme is the scheme under which the local authorities pay grants to eligible students attending full-time courses in universities and other approved third level institutions.
The proposed amendments covered by the Bill are that: (i) the income eligibility of mature persons, who are not dependent on their parents, would be assessed by reference to their and, where appropriate, that of their spouses' incomes; (ii) mature students who secure a place in a third level institution would be recognised as satisfying the academic attainment requirements for the award of a grant and (iii) other school terminal examinations, such as the general certificate of education of Northern Ireland, would be accepted in lieu of the leaving certificate examination for the award of grants.
In accordance with standard practice, these amendments are to come into effect as and from the 1992 higher education grants scheme for students entering approved third level institutions in 1992 and subsequent years.
I wish to state at the outset, in relation to access to third level education for mature students, that facilitating the return of mature students to formal education — including third level education — has a very definite emphasis in the Green Paper which has been published recently. This follows the broad statement of education policy in theProgramme for Economic and Social Progress which identified the facilitating of mature students in upgrading their education or training levels within the education system as a key policy objective. There are currently about 1,600 mature students enrolled in full-time courses of third level education — about 850 in the vocational education committee colleges sector and the balance of 750 in the Higher Education Authority sector. It is not possible at this stage to estimate with any certainty how many mature students will qualify for grants under the new scheme, but firm data should be available after the first year of operation of the new scheme.
The higher education grants scheme was introduced in 1968, almost a quarter of a century ago, following the enactment of the Local Authorities (Higher Education Grants) Act, 1968. It is worthwhile and appropriate at this juncture to reflect on how the numbers of students in, and the public funding of, third level education have changed in the intervening 25 years or so. Numbers in third level education have expanded rapidly over the last quarter of a century, from 21,000 in 1965 to almost 70,000 in 1990-91, increasing in 1991-92 to about 75,000.
Total public expenditure on education in 1992 amounts to £1.6 billion, representing almost 20 per cent of total Government expenditure and almost 6 per cent of GDP. This represents a substantial increase in allocation of available resources to education in comparison with 1965, when the corresponding figures were 13.2 per cent and 3.3 per cent respectively. In 1992 third level education accounts for 22 per cent of expenditure compared to 8 per cent in 1966.
As I have said, the total enrolment in third level education at present is 75,000. A student intake of almost 26,000 in 1991-92 represents a participation rate of 40 per cent of the age-group — compared to 20 per cent in 1980. A further increase in student places is planned over the next four to five years which will bring the participation rate up to about 45 per cent of the age group. In a period of not less than ten years there will have been an increase of 34,000 students in third level education — a staggering increase of 60 per cent which reflects continuing Government commitment to providing additional third level student places, as well as improving access to higher education.
I have pointed out on another occasion that despite the explosion in numbers of students at third level more than half of all students at present in third level colleges receive grant assistance of one type or another — higher education grants, ESF grants and vocational education committee scholarships, etc.
The total student support for fees and maintenance provided by the State is about £72 million. The average support per student benefiting under the various grants schemes is £1,900.
Members of this House will be aware that the local authorities are the bodies statutorily entrusted with the administration of the higher education grants scheme. Grants awarded under the scheme have, of course, always been means tested. Each year my Department prepare and issue a specimen scheme for the guidance of local authorities and make recoupment to them in respect of expenditure by them on grants awarded under the scheme. Each local authority make a new scheme for each year and under the existing legislation this has to be submitted to the Minister for approval. The scheme itself is quite complex because of developments in third level education, social changes and related improvements and amendments to the scheme over the years. I would like to outline briefly a number of the key changes made in the scheme since its introduction in 1968.
In 1972-73, grants were divided into separate fee and maintenance elements for the first time to replace the inclusive grants system which had applied since 1968. In 1973-74, four grade Cs in any four subjects of the leaving certificate examination were accepted, in place of in four matriculation subjects as had been the case.
In 1974-75, grants became tenable at regional technical colleges for the first time. During the seventies and eighties generally, the means test income limits and fee maintenance grants were revised periodically. It will be recalled that this was a period of high inflation which eroded income limits and the real value of grants. In 1982-83, the Poor Law Valuation system was found unconstitutional. New means testing arrangements were introduced for farmers and the self-employed generally.
In 1983-84, special provision was made to enable grant-holders to pursue courses in Northern Ireland.
In 1985-86, tapering of lecture fee grants was introduced as a result of more gradual tapering of eligibility limits. Up until the 1985 scheme there was no provision for awarding less than the full fee. Grants also became tenable in colleges of education. In 1986-87 and subsequent years, income limits and maintenance grants were index-linked, i.e. increased in line with increases in the consumer price index. The practice has been to increase fee grants in line with increases in third level fees generally.
In 1990-91 and subsequent years, the requirement of four higher level leaving certificate grade Cs was reduced to two grade Cs in higher level papers.
I will deal shortly with the major new improvements to be introduced in 1992.
I now come to a very important point in the context of the amendments proposed in this Bill — the question of exactly what group of students is to benefit from an improvement in the terms of the grants scheme.
Having regard to the constraints on Exchequer resources, it has only been possible in years when there has been an improvement in the conditions for qualifying for grants under the higher education grants scheme to introduce and fund the improvement with effect from the scheme of the year in question. In fact this has always been the position since the scheme was first introduced in 1968 and is therefore in the nature of a general principal. Thus, when, for example, it was decided in 1990 to reduce the requirement of four Cs in leaving certificate higher level papers to two Cs in higher level papers, that improvement applied only in respect of persons entering third level and qualifying for grants under the scheme for 1990 and subsequent years.
The background to this Bill is that following on proposals contained in both theProgramme for Economic and Social Progress and in the Joint Programme for Government, the higher education grants scheme was re-examined in a number of key areas and the Government sanctioned a range of improvements. In accordance with the standard procedures those improvements will take effect in the schemes for 1992 and subsequent years in respect of new entrants to third level education in 1992 or subsequently.
The principal improvements under theProgramme for Economic and Social Progress as already announced are: (a) the income eligibility ceiling for families will be increased by £2,000 for each child after the first child attending third level education; (b) income eligibility will be assessed on current income and income limits in the year of entry into third level rather than as heretofore, on the income limits in the year in which the student sat the Leaving Certificate; (c) mature students who secure a place in a third level institution will automatically be considered to meet the academic requirements for the award of a grant; (d) mature students who are not dependent on their parents may be assessed on the basis of their own incomes — and, if applicable, their spouses' incomes — rather than on their parents' income which has been the case up to now and (e) lone parents welfare payments under the lone parents allowance scheme will be excluded from the assessment of income for grant eligibility.
Arising also from the proposals in theProgramme for Economic and Social Progress and in the Joint Programme for Government, a working group in my Department have carried out a review of the criteria for eligibility for third level student grants with a view to achieving greater equity and transparency. Following this detailed review the Minister for Education yesterday announced new income assessment procedures together with a substantial increase in income eligibility limits with effect from the 1992-93 academic year.
The increases in the income limits are very substantial and will be of significant benefit to lower and middle-income families who have been experiencing difficulties in sending their children to third level education.
For instance, under the new arrangement now being announced by the Minister, a family with anything from one to three children will qualify for full fee and full maintenance grants on an income of £15,000. This represents a dramatic increase on the present income limit of £10,787 — an increase of over £4,200 or 40 per cent. This same family will be eligible for a full fee grant with an income of up to £18,000 and a 50 per cent fee grant up to an income of £19,000.
As well as this, it is important to note, as already mentioned, that these income limits will be increased by a further £2,000 in respect of every child, after the first child, attending third level education, as announced earlier this year.
It was because of his concern about the families in these income groups, and who are now catered for in the new income limits, that the Minister announced earlier this year that he was carrying out this radical and fundamental review of third level student grants. The Minister, Deputy Brennan, was also anxious to see that greater equity, fairness and openness be introduced into the system of means testing for student support and in the allocation of resources for students and their families.
Taken in conjunction with the package of improvements announced earlier this year — all of which will come into effect for the 1992-93 academic year — this announcement represents the most radical and far-reaching set of reforms in student support since the schemes were introduced in the late sixties.
As the Minister has already pointed out, the introduction of means testing of the maintenance element of ESF Grants for students commencing in 1992-93, has to be seen in the context of this wide-ranging programme of improvements and in the wider context of achieving more places for more and more students in third level education within the scope of the funds available and a more equitable distribution of students from lower income groups.
The Minister reiterated that the means testing for ESF courses will be confined to the maintenance element for students commencing in 1992. All students on ESF courses will continue to receive free tuition.
In introducing this range of improvements, the Minister is also determined to ensure that a greater degree of fairness and rigour is introduced in the assessment of income and in ensuring a full return of income from all applicants. This approach is motivated by a wish to ensure that there is greater equity and fair-play for everyone and he is anxious that the more direct involvement of the Revenue Commissioners in this important aspect of the schemes will make a significant contribution to achieving this aim.
The Minister is satisfied that this announcement will be widely welcomed especially by lower and middle-income families and PAYE workers. This package represents an unprecedented leap forward in the whole area of student support and provides a major boost to thousands of students and families throughout the country.
The Bill proposes minor amending legislation to give effect to the amendments at (c) and (d) relating to mature students so that the grants schemes for 1992 and thereafter can be appropriately amended and grants paid to mature students on the new basis from the 1992-93 academic year. The other improvements mentioned will be taken care of in the context of the 1992 higher education grants scheme.
I am also taking the opportunity, in section 4 of the Bill, of amending section 2 (i) (a) of the Local Authorities (Higher Education Grants) Act, 1968, to permit the acceptance of other school terminal examinations in place of the leaving certificate examination.
I now propose, a Cheann Comhairle, to outline to the House the provisions of the Bill as presented.
Section 1 defines "the Principal Act", which is referred to in the Bill, as the Local Authorities (Higher Education Grants), Act, 1968.
Section 2 amends section 1 of the Act of 1968 (as amended by section 1 of the Act of 1978) by inserting definitions of "mature students" and "spouse". The section, in providing for a minimum age of 23 years for mature students, takes account of current admission requirements of approved institutions, and provides the facility for the Minister for Education with the consent of the Minister for Finance to vary that age by making regulations. The making of such regulations is dealt with in section 6. The definition of "spouse" in section 2 includes either person of a married couple living together and also includes a man and woman who are not married to each other but are cohabiting as husband and wife and is identical to the same definition in social welfare legislation.
Section 3 amends section 2 of the Act of 1968 and provides for local authorities to award grants to mature students who do not qualify for grants under the existing arrangements and, in the case of those who are not dependent on their parents, to assess means by reference to their own income, if any, and that of their spouses — as defined — if applicable.
Mature students who are dependent on their parents will be assessed by reference to their own income, if any, and that of their parents in accordance with the general practice for higher education grants. Section 3 also provides that mature students must comply with such other requirements as may be prescribed by the Minister. A similar provision exists in relation to higher education grants generally in subsection 2 (1) (d) of the Act of 1968.
Section 3 will enable,inter alia, a suitable provision to be included in the higher education grants scheme for 1992 and subsequent years deeming mature students to have met the academic requirements for grants.
Section 4 amends section 2 of the Act of 1968 to permit the acceptance of other school terminal examinations in place of the leaving certificate examination. This section is not geared towards mature studentsper se. Rather the purpose of the amendment is to permit local authorities to consider a small number of Irish nationals who are resident in Border areas in the State but who are ineligible for a grant because they attend second level schools in Northern Ireland.
The amended provision would enable the general certificate of education of Northern Ireland to be considered for grants purposes. It would also permit the acceptance of school leaving examinations from the EC, generally at a later stage, should such a need arise.
Section 5(1) stipulates that the amended provisions relating to mature students "shall apply to mature students who have secured places to commence courses in approved institutions in the year 1992 or subsequent years".
Section 5 (2) stipulates that the amended provision relating to school terminal examinations outside the State shall apply to the higher education grants scheme for 1992 and subsequent years. As regards section 5, as I stated earlier, there is a general principle involved in making amendments and improvements in the higher education grants scheme effective only as and from the higher education grants scheme for 1992 and subsequent years.
Section 6 amends the Act of 1968 and provides for regulations made under the Act to be laid before the Houses of the Oireachtas. Section 7 is a standard provision relating to short title construction and collective citation. I commend this Bill to the House.