Michael Creed
Ceist:418 Mr. Creed asked the Minister for Education and Science if he will significantly increase the higher education maintenance grant. [29529/00]
Written Answers. - Higher Education Grants.
Seán Barrett
Ceist:425 Mr. Barrett asked the Minister for Education and Science the plans he has to increase the student third level maintenance grant payment levels and also the qualifying thresholds. [29657/00]
Breeda Moynihan-Cronin
Ceist:426 Mrs. B. Moynihan-Cronin asked the Minister for Education and Science the proposals he has to increase the maintenance grants for third level students; and if he will make a statement on the matter. [29757/00]
Jack Wall
Ceist:430 Mr. Wall asked the Minister for Education and Science his views on the demand by the USI with regard to increases in grants; and if he will make a statement on the matter. [29761/00]
I propose to take Questions Nos. 418, 425, 426 and 430 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.
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 grants. 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%.
Similarly, 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.
There are no plans at present to depart from these indices as a guideline.
In the present financial year, expenditure on student support, including free fees, is expected to be about £250 million. In view of the scale of expenditure involved, and the representations being made by students and other groups, I announced, on 11 November, 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. The project team is to report to me by the end of March 2001.
Some 40% of third level students qualify for maintenance grants. The need to target resources at those most in need is well recognised and underpins our approach to tackling disadvantage. In this regard 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.
I established an action group on access to third level education last September to advise on measures which would tackle under-representation by disadvantaged students. This action group will advise me on the development of a co-ordinated framework to promote participation at third level by such students. I have asked the group to provide a report to me within three months.
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 have announced the introduction of a special maintenance grant payable to disadvantaged grant holders, targeted at those most in need. The full rates of the special maintenance grant entail increases over the standard rates as follows: from £1,775 to £2,000 for students residing more than 15 miles from college; and from £710 to £1,000 for students resident within 15 miles of college.
Tentative indications are that up to 10,000 students may benefit from this measure.
With specific regard to rent costs, in recognition of the difficulties being encountered by students and following consultation with third level colleges, the Government introduced special tax incentives to encourage the provision of student rented residential accommodation in the Finance Act, 1999. A survey by the Department of the Environment and Local Government in September 1999 to gauge the effect of the tax incentives indicated that 7,500 bed spaces were in various stages of planning.
These tax incentives are intended to increase the availability of dedicated student housing and represent a targeted response to the underlying issue of an accommodation shortage, rather than an across the board increase in grant levels which, at a considerable cost, would have no direct impact on helping students to compete in the rented accommodation sector.