USI Guide to Budget 2013

USI Guide to Budget 2013

Student Contribution Charge The Student Contribution Charge will be increased by €250. This fee increase represents an 11% increase in the fee. The move is regressive and will cause further hardship for middle-income families affected just above the eligibility criteria for grants. With the cost of going to college approximately €10,500 a year before fees, the fee increases outlined to 2015 will continue to price many families out of third level education.

Maintenance Grants Grant Rates: There was no change announced in the grant level.

Income Thresholds:Changes to the income threshold levels at which students receive grants have been announced by Minister Quinn. All threshold levels will decrease by 3%, with the exception of the Special Rate and the Postgraduate Rate, which remain unchanged. This decision will mean that 8% of Maintenance Grant recipients, approximately 6,400 students, will receive a reduction in their maintenance or fee grant.

For many students this will entail a reduction of up to €755 per year or €84 per monthly payment.

Change to Income Thresholds Number of Dependents

2012/2013

2013/2014

50% Fees, No Grant

50% Fees, No Grant

55,920

54,240

Between 4 and 7 Dependents 61,440

59,595

8 or more Dependents

66,700

64,700

Full fees, No Grant

Full fees, No Grant

51,380

49,840

Between 4 and 7 Dependents 56,460

54,765

8 or more Dependents

61,296

59,455

25% Grant, Fees Paid

25% Paid

Fewer than 4 Dependents

Fewer than 4 Dependents

Grant,

Fees

Fewer than 4 Dependents

47,205

45,790

Between 4 and 7 Dependents 51,880

50,325

8 or more Dependents

56,320

54,630

50% Grant, Fees Paid

50% Paid

44,720

43,380

Between 4 and 7 Dependents 49,145

47,670

8 or more Dependents

53,360

51,760

75% Grant, Fees Paid

75% Paid

42,235

40,970

Between 4 and 7 Dependents 46,415

45,025

8 or more Dependents

50,400

48,890

100% Grant, Fees Paid

100% Grant, Fees Paid

41,110

39,875

Between 4 and 7 Dependents 45,165

43,810

8 or more Dependents

49,045

47,575

Special Rate

Special Rate

22,703

22,703

Between 4 and 7 Dependents 22,703

22,703

8 or more Dependents

22,703

Fewer than 4 Dependents

Fewer than 4 Dependents

Fewer than 4 Dependents

Fewer than 4 Dependents

22,703

Grant,

Fees

Grant,

Fees

Back to Education Allowance The once-off Cost of Education Allowance (€300) payable to Back to Education Allowance recipients has been discontinued.

Previously, the Back to Education Allowance was paid at a standard rate but will now be equalised with that payable on the qualifying social protection payment.

A standard BTEA maximum rate of €160 per week will apply to qualifying jobseeker’s allowance participants in receipt of age-related (under 25) reduced rate payments.

DIT Grangegorman Construction will begin on the DIT Grangegorman campus next year. This multi million euro project is the flagship initiative of the government’s capital investment programme and will give DIT students a centralised and state-of-the-art campus in the heart of Dublin city.

Higher Education Funding The funding allocated to third level institutions will be reduced by €25 million. Though the Minister for Education and Skills is requesting the Higher Education Authority ensures this measure does not impact on frontline student services, it is inevitable student supports will be disproportionately affected as approximately 79% of college budgets are tied up in salaries under the Croke Park Agreement .

Tax relief for philanthropy Philanthropic donations to education in Ireland is a growing factor for the funding of third level education. The Minister has asked the Joint Oireachtas Committee on Finance and Public Expenditure Reform to examine proposals to more effectively recognise large philanthropic donations from overseas.

Student Parents Child Benefit: The monthly rate of Child Benefit is reduced by €10 per child in respect of the first and second child, by €18 for the third child and €20 for the fourth child. From January 2013, the monthly rate for each of the first two children will be €130.

Back to School Clothing and Footwear Allowance: The rates of BSCFA are reduced by €50, from €150 to €100 (for children aged 4 to 11), and €250 to €200 (children aged 12 to 17 or aged 18 to 22 in full time education). These cuts will affect student parents in third-level education who qualify for this allowance and also the children aged under 22 whose parents are in receipt of the allowance.

Childcare: About €14 million per year will be allocated to the Department of Children and Youth Affairs to fund a joint initiative to provide 6,000 after-school places for children in primary school. The project will be targeted at low-income families where parents are availing of an employment opportunity.

JobBridge Internship Scheme Over 2,500 new places have been announced for the JobBridge internship scheme. The scheme offers unemployed graduates the opportunity to gain experience in a particular industry before entering full-time employment while receiving top-up social welfare payments above the rate of Jobseeker’s Benefit/Allowance they are eligible for.

Possible Changes in Rent Payable Unearned income to be subject to PRSI from 2014: Income from rental income will become subject to PRSI in 2014. This means that an increased portion of a landlord's income may be subject to tax, and pressure to increase rent may result.

New property tax will be payable by landlords: The government has introduced a property tax, to replace the household charge. It will come into effect from 1 July 2013. The rate will be higher than the old household charge, and there is a danger this rate could be passed on to students renting rooms or accommodation. This should not impact students currently paying a set rent, however there is a risk to rent being increased for next year. USI is encouraging students to be aware of their tenancy rights and to read contracts before signing and agreeing to take accommodation, for more information contact accommodation services or the students’ union on your campus.

PRSI allowance abolished The Pay Related Social Insurance (PRSI) allowance for employees is abolished.

Additional Taxation Measures Motor tax will increase: The tax on small-engined motor vehicles will increase by €14, while the larger engined cars will increase by €126.

Excise Duties: Excise Duty on diesel and petrol will not increase in 2013. This is welcome as many students commute to college.