Minister for Education Mary Hanafin yesterday defended the policy where Government contributions and interest on SSIA accounts over a year are considered as part of the assessment for third-level maintenance grants.
Ms Hanafin was responding to concerns raised in the Seanad on Tuesday by Fine Gael Senator Brian Hayes, who said that the policy could lead to low-income families being prevented from receiving a maintenance grant because they had obtained an SSIA account. Senator Mary O'Rourke (Fianna Fáil) also asked for clarification.
Speaking on RTÉ Radio 1 yesterday morning, Ms Hanafin said that people who had received a grant last year were "highly unlikely to lose anything" as a result of an SSIA, because the increase in income limits for the grants introduced this year "is larger than any amount which you would have got from your SSIA grant and interest combined".
"It would be very unfair on the person who was saving for a long time in the post office or in the credit union if the interest and extra money that they gained would be taken into consideration but the money that was gained on an SSIA wasn't," she maintained.
Labour Party spokeswoman on education Jan O'Sullivan said the policy went against the spirit of the SSIA scheme. "Students from low-income backgrounds, many of whom are struggling to afford to attend third-level courses, will now face undue hardship simply for following the Government's advice in taking out an SSIA account," she said.