Wilson announces the closure of the student relief scheme - 29 Sept 09

DEPARTMENT OF FINANCE AND PERSONNEL

29 September 2009

Wilson announces closure of student relief scheme

Finance Minister Sammy Wilson today announced that the existing rate relief scheme for students will close on 1 December 2009.

The decision to close the scheme was announced in August and follows an evaluation of the scheme which found it to be ineffective and poor value for money.

The Minister said: “Before deciding on a closure date, we sought views from a number of key stakeholders. I have also been mindful of the need to give those directly affected adequate notice while at the same time not prolonging the life of a scheme which is clearly not a good use of public funds.

“Weighing up all of these considerations, I have concluded that 1 December 2009 is an appropriate closure date.”

Subordinate legislation will be required to give effect to this decision and also to set out how those benefiting from the relief before the closure date will be protected. This legislation will be presented to the Assembly next month.

The Minister added: “Those currently benefiting from the relief will be protected for the next three years, in accordance with savings provisions. Special provision will also be made for those on longer courses, like medicine, to ensure they continue to receive the relief until their course finishes.

"The savings provisions will enable the relief to continue to apply in respect of an application received before the closure date; providing the house specified in the application continues to be occupied wholly by eligible persons all of whom were in occupation prior to the closure date."

The Minister also advised that steps are being taken to re-direct the savings resulting from the revocation of the student rate relief scheme to other more targeted forms of student support. Consultation is currently taking place with the universities and other interested groups on this issue.

Notes to Editors:

1. 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 http://www.ratingreviewni.gov.uk/dfp_review_of_the_etlc_scheme__final_report_131108.pdf

2. The closure of the scheme was announced by the Minister for Finance and Personnel on 3 August following Executive agreement on 30 July 2009. December this year was signalled in that announcement as a possible closure date. This has now been confirmed. No applications for student rate relief will be considered from 1 December 2009.

3. 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 benefiting from the rate relief before the closure date.

4. The savings provisions will enable the relief to continue to apply in respect of an application received before the closure date; providing the house specified in the application continues to be occupied wholly by eligible persons all of whom were in occupation prior to the closure date. A period of three years following the closure date was considered a reasonable length of time for the savings provisions to apply. For those current participants whose courses may be longer than the normal three or four years, a proviso will be included to ensure that they can continue to benefit until their current course finishes, assuming that the other eligibility criteria continues to be met in respect of their original application.

5. The Department for Finance and Personnel, in conjunction with the Department for Employment and Learning, are currently considering how best to redirect the savings resulting from the closure of the scheme to other more targeted forms of student support. Consultation with universities and other interested parties is ongoing at present on this issue.

6. Media enquiries 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.



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