Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank my colleague for his work on this matter. It is a good example of common-sense politics where one identifies an issue and bring forward proposals to fix the issue. I thank him for tabling this proposal at a meeting of our parliamentary party and for engaging with me on same. The proposal is good for students, local businesses and families. In addition, there is the concept that one should reward work and never penalise it.

As the Senator rightly said, the main financial scheme available to students is the student grant scheme. We have made a number of improvements to the scheme that will kick in from September. We have increased the amount of the grant for the first time in ten years, we have increased the income threshold for the first time in ten years and we have also changed the adjacency rate for the first time in ten years so more students will qualify for a higher rate of grant.

This is a scheme where household income from all sources, including the income from a student’s employment, is taken into consideration. However, as the Senator stated, income from a student, which represents holiday earnings outside of term time, can be deducted up to the sum of €4,500. The rationale for this approach is to mitigate against students working so much during their tertiary education because full-time students want to focus on their education. The approach also recognises that students work during the summer, and they often need to work as well. This balance was highlighted by a recent review of the student grant scheme.

In 2016, the holiday earnings deduction amount was increased from €3,809 and is now €4,500.

I wish to clearly point out something to students who are following this debate. When applying for a SUSI grant a person is assessed on his or her previous year's income and we will make the change this summer. The provision will mean that students who work this year will be able to deduct any income against the grant in 12 months. Therefore, a grant is calculated based on the income 12 months previously.

The world has changed quite significantly. The cost of living has obviously increased. The situation is a real challenge for every student, family and person in this country.Also, we have pubs, hotels, restaurants, shops - you name it - right across this country in need of people today to help them out in their work. In that context of the cost-of-living crisis and the acute labour shortages in towns and villages throughout this country, I am working closely with my officials to see how we can amend this scheme so that students could have a higher level of holiday earnings deduction. As I say, we increased it to €4,500 in 2016. I believe it should now be increased further.

It is now evident from independent research, although independent research is not needed to tell you this, that many students work throughout the year to meet the rising cost of living. I want to see whether there is merit in tweaking that so that it is not only holiday time, that we recognise a student might a have job in a bar, a hotel, a restaurant or a shop at the weekend as well during term time, and whether that income could be disregarded as well. That is something I will look at.

We all accept we need to strike a balance between recognising the reality of students working while also making sure any change in policy does not in any way disrupt a student's full-time academic work. As I have said, given the rising cost of living, the measures proposed by Senator Cummins would be progressive. They would be student-friendly and business-friendly. They would be welcomed by many sectors of the economy and by society. They would also be welcomed by many families across Ireland. I intend to bottom-out on this issue over the course of the next few weeks and then communicate these changes loudly and clearly to students.