Support for vulnerable students has been thrown into uncertainty after the Independent Social Support Agency was abolished and its responsibilities transferred to the Cyprus State Scholarships Foundation (IKYK), which says it still lacks the funding, software and staffing needed to carry out its new duties.
The issue emerged during a meeting of the House Education Committee, where IKYK chairman Emilios Solomidou acknowledged that the organisation is currently unable to properly operate the functions inherited from the former agency.
Responsibilities transferred, funding was not
According to Solomidou, the agency's responsibilities were formally transferred to IKYK on 14 July 2026, but the corresponding budget has yet to follow.
He said objections raised during the process must first be resolved before funds can be released, with financing now expected to arrive in November.
The difficulties go beyond funding.
IKYK also does not have access to the software previously used to process financial-support applications. Solomidou said he was informed that the system had been donated to the former agency and that the donor did not wish it to be transferred to IKYK.
As a result, the foundation must incorporate the former agency's functions into a new system currently under development. That software is not expected to be ready before June 2027, raising concerns about how students requiring financial assistance will be served in the meantime.
Solomidou acknowledged delays are inevitable and noted that the impact will fall mainly on vulnerable families.
Scholarship cases dating back to 2019
At the same time, IKYK is still dealing with its own backlog of applications, some dating back seven years.
The current board inherited approximately 3,500 pending scholarship applications, including cases stretching back to 2019.
Solomidou said clearing old cases became the board's first priority. Within roughly two months, payments were made to around 1,100 beneficiaries, while processing continues.
He expressed confidence that all outstanding historical cases could be resolved by the end of 2026.
AKEL MP Christos Christofides described the situation as “too little, too late”, noting that some students who began their studies last year may learn whether they qualify for a scholarship only 18 months later.
He argued that while wealthier families may cope with such delays, the consequences for households relying on scholarship support can be severe.
€18m organisation with one person in accounts
The staffing picture presented to MPs highlighted the scale of the challenge.
IKYK secretary Giannis Christou described it as unreasonable that an organisation managing a budget of about €18 million has only one person in its accounts department, who is not a qualified accountant.
Solomidou added that when that employee was absent for around six weeks, the organisation was effectively unable to process payments during that period.
Christou said two temporary staff members are expected to be recruited within the next ten days to strengthen operations.
DISY MP Michalis Kounounis questioned how IKYK can take on additional responsibilities when staffing levels have fallen from 12 employees to eight. He also requested an update on approximately 1,500 applications submitted during the 2025-2026 period.
Scholarships approved without funding
The committee also examined reports that scholarships have been approved without corresponding funding having been secured.
DISY MP Nikoleta Constantinou requested information on the total value of scholarships approved without available budget allocations, while MPs sought clarification on how financial obligations from previous years are being met.
The matter's sponsor, DISY MP George Karoullas, called for a timetable to implement recommendations made by the Audit Office, increased funding and completion of IKYK's modernisation programme.
He also stressed that rewarding academic excellence and providing support based on socioeconomic need are distinct objectives that should continue to operate under separate criteria.
Education Committee chairman Chrysanthos Savvides referred to complaints from students who have not received their scholarships, citing the case of a student who entered university in 2024 with perfect grades but reportedly did not receive scholarship support after failing two courses during her first year.
He requested clarification on the legislation and criteria governing scholarship payments.
