03 August 2009 Wilson seeks to re-direct financial relief for students
WILSON SEEKS TO RE-DIRECT FINANCIAL RELIEF FOR STUDENTS
Finance Minister Sammy Wilson today announced that he intends to close the existing rate relief scheme for students and divert the savings to other forms of support for students.
This decision, agreed by the Northern Ireland Executive, follows an evaluation of the scheme which showed that it was ineffective and represented poor value for money.
Making this announcement, the minister said:
“We have a number of rate relief schemes that help those in need with their rate bills. The scheme for students was aimed at encouraging young people to enter into, or remain in, full time education and training. An evaluation of the scheme has shown that the benefits of the relief are limited and it is not proving effective in meeting what I believe to still be a worthwhile objective.
“Therefore, while I am convinced that closing the rate relief scheme is the right thing to do, I am also giving a commitment today to re-direct the money saved by this decision and target it at those who most need it in an effective way that demonstrates value for money. My Department, together with the Department for Employment and Learning, are examining the available options with a view to consulting with key organisations in due course.”
The minister continued by explaining that provision would be made for those currently in receipt of the relief. He said:
“While it is intended that the scheme will be closed to new applicants from around December this year, those currently benefiting from the relief will be protected for the next couple of years, in accordance with savings provisions, providing the original eligibility rules continue to be met. To this end officials have been liaising with organisations that have a direct interest in this policy over recent months.”
Notes to editors:
- Media enquiries only to DFP Communications Office on 028 9052 7374 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.
- The closure of the student rate relief scheme follows publication of the FSG McClure Watters Report commissioned by the Northern Ireland Executive following the review of domestic rating in 2007. The Report concluded that the scheme was not fit for purpose and represented poor value for money. The Report can be accessed via the following weblink
- The views of those who responded on the issue of rate relief for students during the 2007 review can also be viewed on this link.
- The closure of the scheme will require subordinate legislation to be made subject to the negative resolution of the Assembly. This legislation will also set out the savings provisions for those already in receipt of the relief. The Department for Finance and Personnel in conjunction with the Department for Employment and Learning are currently examining the options available for redirecting the savings resulting from the closure of the scheme. This work will take account of the ongoing review of student support measures currently being carried out by DEL.
