Today's report from the Higher Education Authority points to a clear conclusion – access to third level education and university in particular is highly dependent on access to financial support, be that from parents or from local authorities. Today's report underlines two major requirements for third level reform to ensure equality of access for students from all social and economic backgrounds.
The first requirement relates to reform of the restrictive means test for third level grants which discriminates against PAYE workers. The second requirement relates to the major gaps in support for students in disadvantaged areas. Access to a third level grant is often the criterion on which a student is forced either to reject or accept the offer of a university place. It is clear to me from my constituents that some families are not qualifying for grants despite the fact that they are struggling to meet high mortgage, transport and child care costs. The rising rate of inflation has compounded their difficulties in meeting day to day costs.
The Higher Education Authority report states that 25% of higher education grants go to the children of large farmers and this highlights the need to reform the means test for the grant in favour of the PAYE worker. When former Labour Deputy Niamh Bhreathnach was Minister for Education she abolished third level fees to level the playing field for the children of PAYE workers. However, today's report suggests we need to go further to reform the means test to take account of the growing burden of transport and mortgage costs on workers.
In this respect there may be good reason to review the means test guidelines to relate to the net rather than gross income of parents to qualify for the grant. I hope the Minister of State addresses this in his reply. What is the status of the Minister's plan to establish a new agency to oversee grants? I understand he has announced plans for a central agency to administer grants which would, in future, be means tested by the Revenue Commissioners and allocated through the Department of Social, Community and Family Affairs.
Apart from the means test, the report also contains other interesting findings. The report highlights the need to improve supports for disadvantaged students at pre-school, primary and second levels. One of the report's most salient findings is that among students with similarly low results, those from a professional background have a much better chance of progressing to third level in comparison with students from an unskilled background. This highlights a crucial failure at all levels of the education system to ensure ongoing access to career guidance for disadvantaged students.
Other factors also contribute to low participation rates among disadvantaged students at third level. Last month the Labour Party produced a research document on the cost of sending a child to school which revealed that most schools rely heavily on so-called voluntary contributions to meet their running costs. Schools in disadvantaged areas are not in a position to get these contributions from parents and, therefore, they cannot ensure the same standard of education as more affluent schools. Surely this inequality has a bearing on low-income students' progression to third level.
Another area of education which could act as an insurance policy against early school leaving and which could improve the prospects of pro gression to third level is pre-school education for disadvantaged students. This area has been completely neglected by this Administration.
