I propose to take Questions Nos. 503 and 504 together.
In relation to the income thresholds prescribed under the student maintenance grant schemes, the practice in recent years has been to increase the reckonable income limits in line with movements in the average industrial wage to March of the previous year. Last June, in line with this policy, I approved an increase of 6.5% in the reckonable income limits for the 2001-02 academic year. I also increased by 6.5% 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 6% in the rates of maintenance grant. The reference value for inflation is the annual percentage increase in the CPI to mid-February 2000.
For the 2002-03 academic year, reckonable income will be based on the short transitional tax year running from 6 April 2001 to 31 December, 2001. In general, for revenue purposes, all allowances, credits, bands, exemption limits and other annual amounts will be adjusted, where relevant, from their full year value to take account of the short tax year. Similarly, it is intended that the reckonable income thresholds, to be prescribed in my Department's schemes of student support for 2002, will be adjusted accordingly. The schemes of student support, with prescribed reckonable income limits, are normally issued in May-June of each year and it is intended that the issue of the 2002 schemes will adhere to this practice.