Mary Hanafin (Dún Laoghaire, Fianna Fail)

Income from SSIAs is being treated exactly the same as income from similar savings and investment products for the purposes of assessing eligibility for a maintenance grant. This has been the case since SSIAs were introduced.

The amount of income to be included in SSIAs is the Government grant earned on the savings in the relevant tax year — in the case of savings accounts, the gross interest earned in the relevant tax year, and, in the case of investment accounts, the investment profit earned in the relevant tax year. Investment losses are deductible. The same position has long applied to interest earned on other savings products, including deposit accounts, post office savings certificates, life assurance bonds and so forth. The treatment of SSIAs is therefore consistent with the traditional treatment of other similar investments over many years. In applying for a grant for the 2006-07 academic year, only the relevant income earned, as outlined above, on the SSIA in 2005 had to be declared.

With regard to how much impact income from an SSIA could have in determining whether a person would qualify for a grant, the reckonable income limits for student grants have been increased considerably in recent years. In the 2003-04 academic year, the income limit for a family with four children was increased from €23,770 to €35,165, an increase of nearly 48%. However, the maximum amount a SSIA saver could have received by way of Government contribution to their SSIA in any one year is €762. Only the amount of the Government contribution, and any savings interest or investment profit earned in one year, is taken into account in assessments of eligibility for a maintenance grant. The income limits have continued to rise each year, to the point where the limit for a family with four children this year is €41,055.

We have also introduced two new income thresholds to allow for 25% and 75% grants as well as the 50% and 100% rates, as well as the new top-up grant to target extra funding at those who need it most. The maximum level of ordinary maintenance grant available this year is €3,110 compared to €2,390 in 2002. The maximum level of the top-up grant is €5,970 compared to €3,000 in 2001-02.

This year, over €228 million has been allocated for the third level student support schemes. Further improvements to the system are being developed at present to ensure that not only is it a well resourced one but that it is also customer friendly.

Additional information not given on the floor of the House.

To return to the issue of how SSIA income is treated for maintenance grant purposes, the Deputy can be assured that SSIA income is being treated the same as income from similar savings products and that the income limits have been increased substantially in recent years. The SSIAs are being treated the same way this year as they have each year since they were introduced.

See this speech in context