Dáil Éireann debate -
Wednesday, 14 Feb 2001

Vol. 530 No. 4

Adjournment Debate. - Higher Education Grants.

Mr. Wall

I raise this matter following continuous and strong representations from constituents who find it difficult to provide for children in third level education because they have gone over the strict maintenance grant limits as operated by local authorities. In many cases the threshold has been exceeded by only a small amount.

The fact that inflation has risen by about 5.5% has added to the woes of these families and many will have to abandon their cherished ambition of seeing their children realise their potential. It is becoming more apparent that, unless the Minister of State takes immediate action to raise the thresholds, we will once again have a two tier education system with low paid families having to suffer the tragedy of their children being unable to enter third level education.

One only has to look at newspapers to see the rise in the costs of accommodation, travel and food. The main costs associated with keeping children in third level education are increasing. However, the Department of Education and Children continues to bury its head in the sand and is failing to recognise the danger of a divided society as far as third level education is concerned.

Child benefit is paid up to the age of 19 but, in many cases, is of no financial assistance to a family. Will the Department give a commitment to these families? Will the Minister of State investigate the financial hardship being inflicted on these families because of his intransigence in not raising the limits for the grants system?

Accommodation is difficult to find and is more difficult to pay for. Travel is also expensive and, in many cases, is a necessity as many families like to have their children home at weekends or are only able to obtain five day lodgings for them. In some cases children have to work long hours in pubs and clubs at weekends to obtain finance to support themselves.

The country is awash with money yet it is hard to believe we are depriving some and making it difficult for many to fulfil their basic right to education. Is this right? The next generation, the students of today, will not forgive us for depriving them of this right, and rightly so. This is the only opportunity they will have to realise their potential.

The grants system is meagre enough without a situation whereby, because of the PPF, families are over the threshold. Not only should the thresholds be raised but a major review of the funding available should also be undertaken. Low income families are facing a nightmare because a son or daughter may have been successful in second level education yet cannot go to third level because of financial constraints.

It is imperative that the Department faces up to the problem. I have heard nothing from the Minister for Education and Science about alleviating this problem despite the fact that the USI and others have raised this issue. I have been inundated with applications seeking an increase in the thresholds and the grant payments. If this does not happen, children will lose out and we will return to the situation which existed in the 1950s and 1960s where only the rich could obtain third level education and everyone else had to forgo the chance or get a trade. The Minister of State should give a commitment on this matter. It is imperative this is done as a matter or urgency.

Minister of State at the Department of Education and Science (Mr. Treacy)

I wish to thank the Deputy for raising this issue as it gives me the opportunity to set out the position regarding this matter. 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 to assist students attend full-time third level education.

The practice in recent years has been to increase the reckonable income limits in line with movements in the average industrial wage in the previous year. Last June, in line with this policy, the Minister for Education and Science announced an increase of 5% in the qualifying 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%. The allowance by which the income limits may be increased in respect of other family members pursuing a course of study was also increased by 5%.

The reckonable income limit for a full maintenance grant under the student support schemes for the 2000-01 academic year is £20,200. Candidates who do not qualify for a full maintenance grant may qualify for a 50% part maintenance grant in respect of which the income limit is £21,400.

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

The Minister announced late last year that he 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. Issues relating to the implementation of the team's recommendations will be addressed when its report has been completed.

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 the Government's 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.

In September last, the Minister established an action group on access to third level education with the aim of tackling under-representation of disadvantaged students. The report of the action group, which the Minister will shortly receive, will offer advice on the development of a co-ordinated framework to promote participation at third level by such students. The Minister will make a further announcement in this regard when he has had time to fully consider the contents and recommendations of the report.

As an indication of this Government's support in promoting equity in access and as an initial step, pending the findings of the action group, the Minister 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. I trust this information puts this matter in context for the Deputy and the Members of this House.