Third-level fees would amplify income inequity
Their concern arises from the continued speculation in the media about the Government's intentions regarding the reintroduction of fees for third level. This concern is further increased when the child is in a college in another town or city and requires accommodation.
The income limit in 2002 for full maintenance and full fees grants was €21,629 (£17,034) and the income limit for part maintenance and full fees was €22,914 (£18,046). There was a modest increase in these figures where there were more than four children in the household or where there was more than one child in college. It would be reasonable to expect an increase in these limits for 2003 but wages will also have risen.
Provisional figures from the Central Statistics Office show that in 2002 the gross income of unskilled and semi-skilled operatives in businesses with 10 or more employees is €33,067 (£26,042). This means that the average unskilled or semi-skilled worker cannot avail of any of the third-level grants.
With college fees expected to average €6,000 and the cost of housing, feeding and providing for books etc (also estimated to cost €6,000), the total cost per student per year will be €12,000 (source: USI). As the PAYE worker has to pay this after tax and PRSI he/she will need to earn €15,000 gross to keep a child in college. This is 45% of the average unskilled/semi-skilled gross wage.
The reintroduction of fees without a massive lift in the levels of reckonable income for grants would have a devastating impact on the numbers of children from working class families.
As Dr Patrick Clancy and Joy Wall indicated in their study of the Social Background of Higher Education Entrants, (October 2000), less than 25% of children of unskilled and semi-skilled workers go to college, compared with over 75% of children of farmers, employers, managers and higher professionals. The report also highlights some anomalies in the provision of grants. For instance, children of the following groups get grants 20% of employers/managers; 16% of higher professionals; 18% lower professionals; 25% of farmers with over 200 acres.
It is obvious that some very wealthy groups in society are gaining while the PAYE worker is left paying the bill.
If the Government is serious about equality it should use the tax system to recoup the cost of fees from wealthy families and not put ordinary workers and their families under threat.
Jack Walsh,
Community Liaison Officer,
James Connolly Branch,
The Labour Party,
33 Grange Heights,
Waterford City
