Seán Sherlock (Cork East, Labour)

I thank Deputy Flanagan for raising this important matter. The Deputy refers to an announcement last December that the means test for student grants will be amended to take account of the value of certain capital assets as well as income for the 2013-14 academic year. A considerable body of reports over a number of years have strongly recommended the introduction of a capital test for student grants, on the grounds of equity and fairness. The introduction of such a test would create a more equitable basis for means testing where a more complete analysis is undertaken of a family's capacity to support their children in pursuing further or higher education. The Deputy will appreciate, in the context of the current financial climate, the importance of accurately targeting increasingly scarce resources to those who need them most and this has become a high priority. While the introduction of a capital asset test for student grants may have traditionally been perceived as likely to impact in particular on farming communities, I assure the Deputy this is not the object of the proposal. The means test will be applied fairly to all applicants.

Deputy Flanagan may be aware that a dedicated capital asset test implementation group has been established. The group has been charged with bringing forward detailed implementation proposals for new means testing arrangements for student grants, to include the value of assets, for new applicants beginning in the 2013-14 academic year. The group has met on three occasions and its deliberations are ongoing. I anticipate the group will report to the Minister by the summer and will make recommendations on the inclusion or exclusion of various classes of assets. Any proposals will require further Government agreement and will necessitate legislative amendment. It will, therefore, be agreed at Cabinet level.

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