Dáil debates

Tuesday, 27 January 2015

Other Questions

Student Grant Scheme Administration

3:15 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

The rates of grant and the income thresholds for the student grant scheme are announced annually as part of the budget process. No changes to the rates or thresholds were included in budget 2015.

The means test arrangements relating to the student grant scheme are applied nationally. In the case of both employed and self-employed applicants, gross income before deduction of income tax or universal social charge is assessed with certain specified social welfare and health service executive payments excluded. Therefore, all income is assessed from the same starting point, eliminating any distortion which might arise from different spending decisions.

Contributions to pension schemes and pension or retirement products, within the limits allowed by the Revenue Commissioners, are deducted in determining the reckonable income of an applicant as set out under the student grant scheme 2014. The reckonable income for the student grant at the standard rate generally observes the percentage changes in average industrial earnings for specified reference periods as provided for by the Central Statistics Office, CSO. The latter provides data to the Department on an annual basis in respect of the dataset of estimates of earnings per week by industrial sector. Analysis of the quarterly data identifies any change to the income thresholds, which are subject to approval by the Department of Public Expenditure and Reform.

What I am trying to say is that changes are based on evidence and research. There probably has not been a change in the past year or two.

The Deputy referred specifically to teachers and nurses. Naturally, the funding of education, especially third level education, is an issue for everybody, no matter what his job. Certainly in the past six or seven years, most people in this country have been affected by the changes across the board. We acknowledge that and accept that this is a difficult time. As I always say, we are trying to do our best to stretch the education budget, which includes the grant, as far as we can.

The question of further and future funding of colleges is being considered. A study is being carried out at present, and Mr. Peter Cassells is in charge of it. It will allow for the discussion we need to have on the future of education at higher level. The Deputy is correct to state that everybody is under pressure, including parents and the students going to college. Likewise, colleges and universities are under pressure trying to fund everything, yet we all have big plans for the future. We really must have a conversation in this House on how it will all happen. The study by Mr. Cassells will feed into that and will help us in this area. It is a major area. With so many predicted to go to college and university in the future, this is necessary. There are many pressures exerted on institutions owing to supply and demand, and this is a matter we must monitor for the future. There was no change in budget 2014; the last change was in budget 2013.

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