Dáil Éireann debate -
Thursday, 15 Feb 2001

Vol. 530 No. 5

Written Answers. - Higher Education Grants.

Noel Ahern

Question:

169 Mr. N. Ahern asked the Minister for Education and Science the progress on claims for increased maintenance grants and improved income limits for third level students; if the detail of the additional grants for disadvantaged students has been completed; if the criteria can be outlined; if a response to the USI campaign for grants to reach social welfare levels can be given; and if he will make a statement on the matter. [4357/01]

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.

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 2000-2001 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%.

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. I will consider the appropriate response when I receive the team's report.

In September 2000, when setting up the action group on access to third level education, I announced, as an initial step pending the findings of the group, the introduction of a special rate of maintenance grant payable to disadvantaged grant holders. The adjacent and non-adjacent rates announced were £1,000 and £2,000 respectively.

I expect to receive the report of the action group shortly and recommendations relating to the criteria for the special rates of grant are part of that report. A further announcement regarding the special rates of grant will issue when I have fully considered the recommendations presented in the report.