I announced late last year 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. In this context, issues which figure prominently in representations about student support will also be examined by the team. I will consider the appropriate response when I receive the team's report.
Expenditure on student support, including the cost of the free fees initiative, amounted to approximately £250 million in 2000. Some 40% of third level students qualify for maintenance grants. Accordingly, any proposal that student grants be brought in line with social welfare payments for the unemployed would give rise to considerable additional cost, estimated by my Department to be in the region of £64 million per annum.
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 established an action group on access to third level deduction in September 2000 to advise on the development of a co-ordinated framework to promote participation at third level by such students. I expect to receive the group's report in the near future.
As an indication of the Government's support of promoting equity in access, and as an initial step pending the findings of the action group, I 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 grants 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.