Inclusion of assets in means test for grants criticised

The possibility of means testing assets as part of the application for student grants has been criticised this week, with local politicians raising the issue with Education Minister Ruairí Quinn.
Local Fine Gael TD Nicky McFadden recently raised the issue with the Minister in the form of a Dáil question, asking him to ensure the eligibility for third level grants will continue to be calculated on the basis of earned income and that the value of assets used to earn this income is not made part of this assessment. She said children of farming families should not be prevented from progressing to third level and asked the Minister to make a statement on the matter.
In a written response to Deputy McFadden, Minister Quinn said a dedicated capital assets test implementation group was established to bring forward detailed implementation proposals on new means testing arrangements for student grants, to include the value of assets.
“I have received a draft report from the implementation group. This is currently under consideration and I will be consulting further with my cabinet colleagues in the matter in due course,” Minister Quinn said.
“The intention behind this approach is to ensure that, at a time of reduced resources, the Government targets valuable schemes, such as the student grant scheme, at those who need them most. Equally, it is to ensure that those who can afford to pay to go to higher education should do so. Under any new means testing arrangement, families from all sectors whose income and assets fall below a certain level, will continue to be eligible for third level grants for their children,” he concluded.
Fine Gael Cllr John Dolan has also written to the Minister on the issue and said this week it is unfair if the children of farming families and self-employed people are penalised if their assets are included in means tests.
“There is a major concern out there, mostly coming from farming families, but it will affect any self-employed person who is sending children to college,” Cllr Dolan told the Westmeath Independent, explaining that if assets are included in the means test their business assets will be taken into consideration.
He said he wasn’t looking for special treatment for farmers or self-employed people, but everyone deserved to be treated the same and the means test should apply to income only.
“Just because someone has an asset worth three quarters of a million doesn’t mean they’re well off,” he said. “I would hope he’ll take on board what is being said. I have no problem if someone has a large amount of money in the bank that it be taken into consideration, but I think it’s very unfair on someone who has a business that’s worth a bit but their income is low. They can be asset rich, but income poor.”
He said he had written to the Minister on the issue and pointed out that the situation on the ground is that while people may have assets they might not be well off.
“There are people out there that if the grant system wasn’t there their children wouldn’t be in college,” he said. “It’s not that I’m looking for special treatment, but I want everyone to be treated the same and that’s on their income,” he said.
Fianna Fáil Cllr Aengus O’Rourke has also criticised the plans and this week called on the Government to reconsider its plan to include farm assets in means testing for third level grants.
Cllr O’Rourke commented: “I find it hugely disappointing that the Minister plans to forge ahead with these plans despite huge opposition within and outside the Government. Eligibility for the grant should be solely judged on income and it is discriminatory to use agricultural lands as part of the assessment criteria.
“Under the current grant application system, all farm income is assessed. If the Government goes ahead and assesses the value of farmland as an income source on its own, this would be hugely unfair and amount to double assessment on the same land.
“To proceed with this plan would result in a further cut to student grants targeted at farming and self-employed families. It will put many farming families in a position where they must decide whether or not to sell some of their land, which may not be generating income, in order to fund college for their children,” he said.
Cllr O’Rourke added that Fianna Fáil is completely opposed to this as it would act as a further deterrent to third level education at a time when education is so important to our economic recovery.
“There should not be separate rules for farmers and everyone else. The double assessment for farmers is wrong, discriminatory - it must and will be strongly resisted by Fianna Fáil,” he said.