Written Answers. - Higher Education Grants.
Brian O'Shea
Question:
224
Mr. O'Shea
asked the
Minister for Education and Science
the plans he has to increase both the level of grant and the qualifying income threshold levels for third level grants (details supplied); and if he will make a statement on the matter.
[29864/00]
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.
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%.
Similarly, my approach has been to follow the practice of recent years and increase the reckonable income limits in line with movements in the average industrial wage in the previous year. 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.
I have 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.
Also, there is provision within the national development plan for a third level access fund totalling £95 million over the period of the plan and I have established an action group on access to third level education to advise on measures which would tackle under-representation by disadvantaged students.
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. 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.
