Dáil Éireann debate -
Tuesday, 5 Dec 2000

Vol. 527 No. 3

Written Answers. - Higher Education Grants.

Michael Creed

Question:

375 Mr. Creed asked the Minister for Education and Science if he will amend the higher education grants scheme in order that mortgage and house improvement loan repayments can be offset against gross income when determining reckonable income for grant purposes. [28310/00]

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 means-tested higher education grants in order to assist students to attend full-time third level education.

Under the terms of the scheme, the candidate's reckonable income for the purposes of the means test is his or her gross income from all sources and the gross income of his or her parents or guardians where applicable. Certain social welfare and health board payments are not taken into account in the calculation of reckonable income.

The terms of the maintenance grants scheme, which are uniformly applied, explicitly provide for assessment on the basis of gross income and do not allow for expenditure, such as that incurred on mortgage payments and house improvement loan repayments, to be deducted from reckonable income when assessing a candidate's application.

In relation to reckonable income limits under the terms of the scheme, my approach has been to follow the practice of recent years and increase the income limits in line with movements in the average industrial wage in the previous year. Accordingly, I approved an increase of 5% in the reckonable income limits for the 2000-01 academic year. This exceeded the increase in the average industrial wage for the period March 1998 to March 1999, which was 4.5%. I also increased by 5% the allowance by which the income limits may be increased in respect of other family members pursuing a course of study.

Similarly in relation to the value of the grant, the practice in recent years has been to increase the level of maintenance grants annually at least in line with inflation. Last June, in line with this policy, I announced increases of 5% in the rates of maintenance grant. The reference value for inflation is the annual percentage increase in the CPI to mid-February 2000. The increase of 5% in grant rates for 2000-01 was higher than the reference value, which was 4.3%.

There are no plans at present to depart from these indices as a guideline.

In the present financial year expenditure on student support, including free fees, is expected to be about £250 million. In view of the scale of expenditure involved and the representations being made by students and other groups, I announced, on 11 November, that I was setting up a special project team to carry out a comprehensive review of every aspect of the maintenance grants, and other student supports, to ensure their relevance to the needs of present day third level students. This review will include the level of grants, the methods by which they are paid, eligibility and income limits, accommodation needs, student support services, the most suitable paying agency, the provision of an appeals system, student loans and taxation measures. The project team is to report to me by the end of March 2001.