Dáil Éireann debate -
Tuesday, 24 Oct 2000

Vol. 524 No. 5

Written Answers. - Higher Education Grants.

Minister for Education and Science (Dr. Woods):

The statutory framework for the maintenance grants scheme, as set out in the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, provides for higher education grants in order to assist students to attend full-time third level education.

The practice in recent years has been to increase the rates of third level maintenance grants annually in line with inflation and to increase the reckonable income limits in line with movements in the average industrial wage. Last June, in line with this policy, I announced increases of 5% in the rates of maintenance grant and 5% in the qualifying income limits for the 2000-01 academic year.

The reference value for inflation is the annual percentage increase in the CPI to February. The increase of 5% in grant rates for 2000-01 was higher than the reference value, which was 4.3%.

Some 40% of third level students qualify for maintenance grants. The need to target resources at those most in need is well recognised and underpins our approach to tackling disadvantage. In this regard there is provision within the national development plan for a third level access fund totalling £95 million over the period of the plan, aimed at tackling under-representation by students from disadvantaged backgrounds, mature students and students with disabilities.

I recently established an action group on access to third level education with the aim of tackling under-representation of disadvantaged students. This action group will advise me on the development of a co-ordinated framework to promote participation at third level by such students. I have asked the group to provide a report to me within three months.

As an indication of the Government's support in promoting equity in access and as an initial step, pending the findings of the action group, I have announced the introduction of a special maintenance grant payable to disadvantaged grant holders, targeted at those most in need. The full rates of the special maintenance grant entail increases over the standard rates as follows: from £1,775 to £2,000 for students residing more than 15 miles from college; and from £710 to £1,000 for students resident within 15 miles of college.

Tentative indications are that in the region of 10,000 students may benefit from this measure.

With regard to rent costs, in recognition of the difficulties being encountered by students and following consultation with third level colleges, the Government has introduced special tax incen tives to encourage the provision of student rented residential accommodation in the 1999 Finance Act.

The availability of tax incentives in the past resulted in the provision of a significant number of student residences. As the tax relief will be available for expenditure up to 31 March 2003, the opportunity exists to create significant additional accommodation for third level students. As indicated in the Programme for Prosperity and Fairness, the Government will be evaluating the impact of these tax incentives and will consider further action in the light of the results of the evaluation.

These tax incentives are intended to increase the availability of dedicated student housing and represent a targeted response to the underlying issue of an accommodation shortage, rather than an across the board increase in grant levels which, at a considerable cost, would have no direct impact on helping students to compete in the rented accommodation sector.