The Minister for Education, Mr Dempsey, is set to push for sweeping changes in the higher-level grant system, in a move aimed at wealthy farmers and business people.
Under the new arrangement, all capital assets, such as land and the value of business premises, would be taken into account when the children of farmers and the self-employed apply for grant support.
A Department of Education report published today says that only one in five from the lowest income groups go to third level, compared to 97 per cent among the highest earners. It says over 20 per cent of those who benefit from free fees come from homes with an annual income of over €70,000.
The abolition of third-level fees has done little to widen access, the report concludes. It says the introduction of a capital assets test would remove significant perceived inequity in the grant system.
But any such move is bound to be fiercely resisted by farming and business interests. The current means-test applies to income only.
The report was originally intended to smooth the path for the return of fees. In May, the Minister secured €42 million in extra funding for poorer students, but his plan to bring back fees was abandoned.
Several plans to reform the higher education grant scheme have been mooted in the past decade. Ten years ago, the De Buitleir report showed how wealthy farmers and business people could manipulate the system. It gave the example of a farmer with assets totalling over €500,000 who was able to secure a grant for his son.
The De Buitleir report also recommended a change to an asset-based system of means-testing.
Under the new plan, it is likely that control of the grant system will switch from the local VECs and local authorities to the Department of Social, Community and Family Affairs. The Department has considerable experience in means-testing.
Today's report says that although the number attending college among all social groups has increased, this increase has been most marked among higher professionals, employers, managers and farmers. Lower social groups remain grossly under-represented in third-level education, it says.
The report also points out how some of the most prestigious subjects, such as medicine and law, are dominated by students from the higher social groups.