Dáil Éireann debate -
Wednesday, 11 Oct 2000

Vol. 523 No. 5

Written Answers. - Higher Education Grants.

Róisín Shortall

Question:

87 Ms Shortall asked the Minister for Education and Science his views on equity in the operation of the third level grants scheme in respect of the assessment of parents income from PAYE employment as opposed to self-employment; the plans he has to reform the scheme to ensure greater fairness in its operation; and if he will make a statement on the matter. [21478/00]

Minister for Education and Science (Dr. Woods):

The assessment of means for all applicants under the third level student support schemes is based on gross income with certain deductions for specified social welfare and health board payments.

When assessing income from self-employment and farming, the amount assessed is the adjusted profit-loss for income tax purposes from all self-employment activities, both Irish and foreign, whether they are exempted or relieved from Irish income tax. Capital allowances and other capital related costs, such as interest on borrowings used to purchase fixed assets, are not deductible from the adjusted profit in computing reckonable income for grant purposes. These means test arrangements have been in operation since 1983 and are of general application.

It has been the practice in recent years to increase the reckonable income limits in line with movements in the average industrial wage. The figures are provided by the Central Statistics Office and are computed in each case to March of the previous year. Accordingly, I recently announced an increase of 5% in the reckonable income limits for the 2000-01 academic year.

The reckonable income limit for a full maintenance grant for the 2000-01 academic year is £20,200. A sliding scale of entitlement exists whereby candidates who do not qualify for a full maintenance grant may qualify for a part-main tenance grant, 50%, in respect of which, the income limit is £21,400. Where two or more children, or the candidate's parent, are attending full-time approved third level courses, the above income limits may be increased by £2,270 where there are two such children, by £4,540 for three such children and so on, by increments of £2,270. Some 40% of third level students qualify for maintenance grants.

The schemes of student support are subject to ongoing review. Officials of my Department have been engaged with officials of the Department of Social, Community and Family Affairs on the options for the future administration of these schemes. Terms of reference for a detailed review of the administration of the schemes are currently being finalised between my officials and officials in the Department of Social, Community and Family Affairs. The proposed terms of reference include provision for a review of means testing.