Seán Haughey (Dublin North Central, Fianna Fail)

I thank the Senator for raising the issue of third level grants on the Adjournment this evening. The Department of Education and Science funds four maintenance grant schemes for third level and further education students, which are administered by local authorities and vocational education committees on its behalf. The higher education grant scheme operates under the Local Authorities (Higher Education Grants) Acts 1968 to 1992.

Generally speaking, students who enter approved courses for the first time are eligible for maintenance grants where they satisfy the relevant conditions as to age, residence, means, nationality and previous academic attainment. An approved course for the purpose of the grant scheme is a full-time undergraduate course of not less than two years duration or a full-time postgraduate course of not less than one year's duration, pursued in an approved institution. Under the Department's free fees initiative, the Exchequer meets the tuition fees of eligible first-time undergraduate students attending approved full-time courses.

In addition to the ordinary maintenance grant, students may be also eligible for the special rate of maintenance grant, sometimes known as the "top-up grant". Eligibility for this grant is determined by reference to an income threshold and receipt of a long-term social welfare payment, which includes the State contributory pension. To qualify for the special rate of maintenance grant, applicants must first qualify for the ordinary maintenance grant for the relevant academic year. Total reckonable income in the relevant tax year must not exceed a specified lower income threshold, which is net of standard exclusions, as set out in the maintenance grant schemes, and, where applicable, net of the social welfare child dependants increase payments. In addition, as at 31 December of the relevant tax year, the source of income must include one of the specified social welfare payments.

The special rate of maintenance grant is in place to assist the most needy students. It is increased annually in line with increases in the rate of unemployment assistance. For the current academic year 2006-07, a candidate who is eligible for the special rate of maintenance grant receives the ordinary full rate of maintenance grant of €3,110 plus the special rate of €2,860, giving a total grant of €5,970.

Apart from the maintenance grants schemes and the free fees initiative, financial support is also available to third level students through the student assistance fund. The objective of the fund is to assist students who, due to their financial circumstances, might be unable to continue their third level studies. Information on this fund is available from the access officer in the approved colleges. In addition, the millennium partnership fund for disadvantage supports students from disadvantaged areas attending further or higher education courses. Partnership companies and community groups manage the fund locally. Information on partnership and community groups can be obtained from Pobal.

The means test arrangements of the student support schemes have been in operation since 1983 and are applied nationally. In the case of both the employed and self-employed, gross income is assessed with certain deductions for specified social welfare and Health Service Executive payments. Any proposal to introduce a different method of means assessment or to abandon the means testing requirement for students dependent on those in receipt of State contributory pensions would have significant financial implications in addition to equity issues that would have to be addressed. There are no immediate plans to change the method of means assessment or to remove the means assessment for certain individuals such as those suggested by the Senator. I thank the Senator for raising this matter.