Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - Higher Education Grants.

Brian O'Shea

Question:

427 Mr. O'Shea asked the Minister for Education and Science if, further to Parliamentary Question No. 389 of 5 December 2000, any changes have taken place in regard to the income limits or amounts of third level grants; and if he will make a statement on the matter. [9517/01]

Deirdre Clune

Question:

455 Ms Clune asked the Minister for Education and Science his views on whether an increase in grant-aid of £278, approximately 5% to students, is adequate, in view of the fact that rental payments for most students have increased by 90% in ten years; and if he will make a statement on the matter. [9758/01]

Minister for Education and Science (Dr. Woods):

I propose to take Questions Nos. 427 and 455 together.

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 2000-01 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 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 2000, I established an action group on access to third level education to advise on the development of a co-ordinated framework to promote participation at third level by such students.

Last September, as an indication of the Government's support in 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 grantholders and targeted at those most in need. The full rates of the special maintenance grant entail increases over the standard rates as follows: between £1,775 and £2,000 for students residing more than 15 miles from college and between £710 and £1,000 for students resident within 15 miles of college.

At present I am considering the report of the action group and I hope to be in a position to make an initial response in the near future.

Late last year I also announced 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. Issues relating to the implementation of the team's recommendations will be addressed when its report has been completed.

With regard to rent costs, in recognition of the difficulties being encountered by students and following consultation with third level colleges, the Government has introduced special tax incentives to encourage the provision of student rented residential accommodation in the Finance Act, 1999.

The availability of tax incentives in the past resulted in the provision of a significant number of student residences. As the tax relief will be available for expenditure up to 31 March 2003, the opportunity exists to create significant additional accommodation for third level students. As indicated in the Programme for Prosperity and Fairness, the Government will evaluate the impact of these tax incentives and will consider further action in the light of the results of the evaluation.

These tax incentives are intended to increase the availability of dedicated student housing and as such represent a targeted response to the underlying issue of an accommodation shortage.