Dáil Éireann Debate, Wednesday - 22 November 2006
413 Mr. Bruton asked the Minister for Education and Science if she has made provision in Estimates 2007 for the increase in the income limits and in the maintenance payments, under the higher education grant, in respect of standard applicants and applicants eligible for a special top up grant; and the values in respect of these which applied in the 2006-2007 academic year; and the values expected in 2007/2008. [39700/06]
Amharc ar fhreagra414 Mr. Bruton asked the Minister for Education and Science the month for calculating the movement in prices and the movement in wages which is used by her Department for updating the value of maintenance payments and of income thresholds under the higher education grant. [39701/06]
Amharc ar fhreagraI propose to take Questions Nos. 413 and 414 together.
As the Deputy will be aware, major improvements have been made by this Government in both the income limits and the payment levels for third level grants. The income limits were increased significantly in 2003/04. For the 2003/04 academic year, the income limit for a family with 4 children was increased from €23,770 to €35,165, an increase of nearly 48%. The income limits have continued to rise each year, to the point where the limit for a family with 4 children this year is €41,055, an increase of nearly 73% on the amount allowed in the 2002/03 academic year.
Given the huge increase in income limits in 2003/04, 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 in the reference period (September to September). This year, an increase of 5.3% was approved, in the reckonable income limits for the 2006/2007 academic year, as has the allowance by which the income limits may be increased for each dependant where two or more children are in further or higher education. This increase was ahead of the 3.2% increase in the relevant reference period. The tables below provide details of the current reckonable income limits and grant rates.
The Special Rates of Maintenance Grant, usually referred to as "top-up" grants, payable to disadvantaged grant holders, were introduced with effect from the 2000/01 academic year. The annual income threshold for the special rates of maintenance grant is increased, in line with the relevant social welfare payments. The current income threshold for "top-up" is €16,748. The higher, non-adjacent special rate of maintenance is based on the maximum personal rate of Social Welfare Unemployment Assistance.
As these increases show, this Government has shown a clear determination to improve the grant system to ensure that students get as much support as possible. But, not only have we increased the income limits significantly, we have also made other improvements to the grants system. We have introduced two new income thresholds to allow for 25% and 75% grants as well as the 50% and 100% rates; we have brought in a new ‘top-up grant' to target extra funding at those who need it most; and we have increased grant payment rates. Indeed, the maximum level of grant support available in the current academic year is €5,970, compared with €3,000 in 2001/02.
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 as per the consumer price index. The reference period currently used is the increase in the period to December of the year prior to the relevant academic year. The review of the income eligibility thresholds and the rates of grant that will apply for the 07/08 academic year will take place in the first quarter of 2007 when the relevant reference data is available. Provision will be determined at that point.
More than €228 million has been allocated for the third level student support schemes in 2006. As the Deputy will be aware, further improvements to the grant system are on the cards, with the development of the Student Support Bill and the introduction of payment deadlines to ensure that students get their grants earlier. Major progress has been made by this Government in improving financial support for students and I assure the Deputy that this area will continue to be a priority for us.
For the 2006/07 academic year, the reckonable income limits (based on income for the tax-year 2005) are:
|
Number of Dependent Children |
Full Maintenance and Full Fees |
Part Maintenance (75%) and Full Fees |
Part Maintenance (50%) and Full Fees |
Part Maintenance (25%) and Full Fees |
Part Tuition Fees (50%) only* |
|
€ |
€ |
€ |
€ |
€ |
|
|
Less than 4 |
37,365 |
39,695 |
42,030 |
44,365 |
46,700 |
|
4-7 |
41,055 |
43,625 |
46,190 |
48,760 |
51,325 |
|
8 or more |
44,580 |
47,365 |
50,150 |
52,930 |
55,715 |
*Full Student Service Charge is paid where income is at or below this level.
In the 2006/07 academic year where 2 or more children (or the candidate's parent) are pursuing a course of study listed below the reckonable income limits may be increased by €4,525 where there are 2 such children, €9,050 where there are 3 such children and so on, by increments of €4,525.
(i) attending full-time third level education
(ii) attending a recognised PLC course, student nurse training or student Garda training
(iii) participating in a Fáilte Ireland (formerly CERT) course of at least one years duration
(iv) attending a full time Teagasc course in an agricultural college
(v) attending a recognised full-time further education course, of at least one year's duration, in Northern Ireland
|
Non-Adjacent Rate |
Adjacent Rate |
|
|
€ |
€ |
|
|
Full Maintenance |
3,110 |
1,245 |
|
Part Maintenance (75%) |
2,335 |
935 |
|
Part Maintenance (50%) |
1,555 |
625 |
|
Part Maintenance (25%) |
780 |
310 |
|
Grant |
Standard Grant |
Top-Up Amount |
Total Grant |
|
€ |
€ |
€ |
|
|
Adjacent Rate |
1,245 |
1,145 |
2,390 |
|
Non-Adjacent Rate |
3,110 |
2,860 |
5,970 |
Grants are paid at either of two rates:
The adjacent rate of maintenance grant applies to a grantholder whose normal residence is 15 miles or less from the college which she/he is attending.
The non-adjacent rate of maintenance grant shall be payable in all other cases, including the case of all mature candidates who qualify, having been assessed either as a dependent or independent mature candidate.
Full details of the grant schemes outlined above are available on the Department's website www.education.ie
