Written answers

Thursday, 29 January 2015

Department of Education and Skills

Student Grant Scheme Eligibility

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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164. To ask the Minister for Education and Skills the financial assistance that will be available in respect of a PAYE earner who earns approximately €60,000 gross, which would be substantially less on a net basis when tax and universal social charge are deducted therefrom, and who has three children attending third level institutions in 2015-2016 at the same time; and if she will make a statement on the matter. [4219/15]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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The means test arrangements of the Student Grant Scheme are applied nationally on the same basis to both employed and self-employed applicants. Gross income before the deduction of income tax or universal social charge, is assessed with certain specified social welfare and health service executive payments excluded.

Therefore, the assessment of income from the same starting point is deemed to be fair and reasonable because this approach eliminates any distortion which might arise from different spending decisions in different households.

The Student Grant Scheme provides for different levels of income thresholds where families have (i) less than 4 dependent children (ii) between 4 and 7 dependent children and (iii) 8 or more dependent children.

In addition to this and in recognition of the additional cost to families where more than one person is attending college, income thresholds may be increased for each additional family member attending college at the same time by a rate up to a maximum of €4,980.

The Deputy will be aware that tax relief at the standard rate of tax may be claimed in respect of tuition fees paid for approved courses at approved colleges of higher education in EU Member States and in non-EU countries. Families who pay student contributions for more than one student in a year can also claim tax relief on the second and subsequent contributions. Further information on this tax relief is available from the Revenue Commissioners on www.revenue.ie.

In the interest of equity, I have no plans to change the current arrangement.

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