Dáil Éireann debate -
Thursday, 20 Nov 2003

Vol. 575 No. 1

Written Answers. - Higher Education Grants.

Richard Bruton

Question:

132 Mr. R. Bruton asked the Minister for Education and Science if he has made provision in the 2004 Estimates for an extension in the coverage of the higher education grants scheme in terms of income thresholds, maintenance grant levels, eligibility for enhanced maintenance or the allowance for additional children over and above standard indexation; and the terms of each of these which will prevail for the academic year 2004/5. [27952/03]

Richard Bruton

Question:

133 Mr. R. Bruton asked the Minister for Education and Science if he has made provision in the 2004 Estimates for indexation of the current values of grant and income threshold under the higher education grant scheme; and the monthly value of the indices which he proposes to use to update for the academic year 2004-5. [27953/03]

Minister for Education and Science (Mr. N. Dempsey)

I propose to take Questions Nos. 132 and 133 together.

It has been my Department's approach in recent years to increase the value of the grant under the student maintenance grant schemes annually at least in line with inflation. Similarly, as regards the reckonable income limits under the maintenance grant schemes, the practice in recent years has been to increase the limits at least in line with movements in the average industrial wage in the previous year. The Deputy, however, will be aware of my announcement on 25 May 2003 of a new package of measures costing €42 million in a full year and for which provision is being made in the Department's Estimates for 2004 to further address and ameliorate the problems facing students from low to moderate income households in accessing third level education. This package combines substantial improvements in the level and coverage of the maintenance grant for those on low to moderate incomes, with increases in the level of top-up grant for those who are most disadvantaged.

The main provisions arising from the €42 million package are an increase of 15% in the maintenance grant to give a maximum grant of €2,885, which will benefit, it is estimated, approximately 56,000 students – this increase is substantially higher than the reference CPI increase of 5.1%; significant increases in the reckonable income limits and in the allowance by which the income limits may be increased for each dependant where two or more children are in further or higher education – the increases range from 9.5% to 16.3%, well above the reference increase of 7.6% in the average industrial wage; the introduction of a revised income limit scheme to include the following threshold levels – a new part maintenance or 75% and full fees and an upgrading of the full fees only income limit to become a part maintenance or 25% and full fees entitlement; the top income limit has been increased from €36,897 to €40,000, ensuring that a significantly higher number of students from households with moderate incomes will not have to pay the student service charge.

Significant improvements have been effected in the special rates of maintenance grant or top-up grants for students from disadvantaged backgrounds. The higher, non-adjacent rate has been increased to €4,495, which is an amount equal to the maximum personal rate of social welfare unemployment assistance. The adjacent rate has been increased to €1,800. These increases represent top-ups on the ordinary grant of €1,610 and €645, respectively. The annual income threshold for the special rates of grant has been increased by 10.8% to €13,760.

This substantial package of measures will provide the opportunity, in an unprecedented manner, for students from disadvantaged backgrounds to achieve their full potential in the education system. The publication of the Abridged Estimates is only the first stage in the process which provides an overall framework for decision-making in relation to services and programmes in the following year. I will convey the necessary details as decisions are taken.