Written answers

Tuesday, 30 May 2023

Department of Education and Skills

Cost of Living Issues

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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798. To ask the Minister for Education and Skills his views on the effect of inflation and shortage of accommodation on youth, and in particular the student population; and if he will make a statement on the matter. [25940/23]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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I am aware of the impact of accommodation shortages and cost of living on our third level students and am actively working to address the supply of student accommodation. Increasing costs of construction and financing are impacting on viability, and as a result a number of Universities had to pause their projects. In responding to these challenges, on 29 November 2022, Government approved development of both short and medium term policy responses to activate supply.

These landmark policy responses will see the State providing financial support for the construction of student accommodation so as to ensure increased availability and promote greater access in particular for student groups in line with the National Access Plan, and underpin the policy commitments set out in Housing for All.

The developments to be supported have planning permission. The support will be targeted at providing accommodation to certain SUSI supported students by providing them with accommodation at a defined affordable rate below market rates. At a minimum, 30% of the beds will be made available at discounted rates for the target group of students.

The Government agreed to support the development of long term evidence informed strategic policy to stimulate appropriate supply of student accommodation This will include the development of standardised design specifications and guidance for future developments. This will also be informed by ongoing analysis across Europe and internationally of best practice in the delivery and management of student accommodation.

Department officials are extensively engaged with DHLGH officials to develop synergies in approach for both social housing and affordable student accommodation for target groups. My Department and the HEA are working with a consultant, SUSI and the HE sector to define and gather accurate relevant and informative data related to student accommodation to inform future policy development and responses.

In light of pressures in living costs, I announced a package of cost-of-living measures as part of Budget 2023 that already took effect in 2022. These measures saw:

-every SUSI maintenance grant recipient getting an extra once-off payment in December 2022;

-all higher education students eligible for the fees initiative benefitting from a once-off reduction in the Student Contribution rate of €1,000;

-PhD students funded by the SFI and IRC benefitting from a once-off payment of €500; and

-eligible postgraduate students benefitting from a once-off increase of €1,000 in their Postgraduate Fee Contribution grant.

In addition to once-off cost of living measures, over the course of the past three Budgets, I have delivered a range of enhancements to the Student Grant Scheme to put more money into the pockets of students and their families. Amongst other measures, I have:

- significantly increased the rate of grant, with the most recent improvements taking effect from 1 January this year, where all maintenance grant rates increased by at least 10%;

- increased the income threshold to qualify for the standard rate of student grant and increased the income threshold for students availing of the 50% Student Contribution Grant;

- introduced a new Student Contribution Grant of €500 qualifying families on incomes between €62,000 and €100,000, which will provide support to up to ca. 50,000 students who would not previously have been eligible for SUSI support;

- increased the deduction allowable for student earnings outside of term time from €4,500 to €6,552; and

- enhanced postgraduate supports.

As I did for the first time last year, it is my intention to publish a cost of education options paper which will set out options for further enhancement of student supports for consideration as part of the Budgetary process in the Autumn.

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