Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Question 669: To ask the Minister for Education and Science the reason the higher education grants payable by the vocational education committees are assessed using the gross income for workers and the net income for those in receipt of social welfare; the reason assessments are based on the previous year's income in view of the current economic climate as the means of many applicants has changed dramatically; and if he will make a statement on the matter. [4920/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
Link to this: Individually | In context

The assessment of means under my Department's student maintenance grant schemes is based on gross income from all sources. Therefore, all income is assessed from the same starting point, eliminating any distortion which might arise from different spending decisions.

The income thresholds are stated on a gross income basis – the average industrial wage by reference to which the thresholds are calculated represents gross pay before any deductions for income tax or PRSI.

I have no plans at present to depart from the above practice in respect of the determination of income.

The means test arrangements of the Student Maintenance Grant 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 specified social welfare and health service executive payments excluded.

Rent allowance and Supplementary Welfare Allowance are not excluded payments, they are therefore included in the calculation of reckonable income for grant purposes.

The means test for a grant application is normally based on income in the last full financial year. Therefore, eligibility for a student grant for the academic year 2009/10 will be assessed on income from the 2008 financial year.

However, if there has been a permanent change of circumstances at any time during the period 1st of January 2009 to the last term of the 2009/10 academic year which may affect reckonable income, then eligibility for the grant may be re-assessed to reflect those changed circumstances. Where a dependent student's parent experiences a permanent change in income level, for example, through a reduction in working hours or unemployment, then they may apply to their local authority or VEC to have their eligibility for a grant assessed on the basis of the new income level.