Ulick Burke
Question:867 Mr. U. Burke asked the Minister for Education and Science if he will increase higher education maintenance grants for third level students for 2002. [9261/02]
Written Answers. - Higher Education Grants.
My approach in relation to the value of the maintenance grants has been to increase the level of grants annually at least in line with inflation. Last June, in line with this policy, I approved increases of 6% in the rates of maintenance grant. The reference value for inflation is the annual percentage increase in the consumer price index to mid-February. The increase of 6% in grant rates for 2001-02 was higher than the reference value, which was 5.3%.
Similarly, 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. I approved an increase of 6.5% in the reckonable income limits for the 2001-02 academic year. This exceeded the increase in the average industrial wage for the period March 1999 to March 2000, which was 5.9%. 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.
On my initiative a special project team is carrying 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 includes 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. Some of these topics are, of their nature, complex and require detailed research. As part of the review, the Economic and Social Research Institute was commissioned to undertake research on the effect of changes in the income thresholds and on related matters. The report's findings have informed the work of the project team and drafting of the team's report is now being finalised. Issues relating to the implementation of the team's recommendations will be addressed when its report has been completed.
I have already introduced special rates of maintenance grant payable to disadvantaged grant holders with effect from the 2000-01 academic year. The rates are €3,809 – £3,000 – for students residing over 15 miles from the college attended and €1,535 – £1,200 – for students residing less than 15 miles from the college attended. These increased rates of grant will be a powerful incentive to eligible students to enter third level and to complete their studies in the knowledge that additional financial assistance will be available to them.