John Cummins (Fine Gael)
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I thank the Minister for coming to the House for what I feel is a very important Commencement matter, which is the eligibility of students for the SUSI grant if they take on additional work during the summer period.

As he will be aware, many students rely heavily on the SUSI grant to assist them in getting through college. I commend him on the changes that he has brought forward, which mean that from September all student grants will increase by €200 and the non-adjacent rate will reduce to 30 km, meaning that many students will see their grant increase by 30%. He has also increased the income eligibility thresholds to ensure that more students qualify. It is this very point that I want to elaborate on as part of my Commencement matter.

Under the current rules for assessing income from employment for a SUSI grant, students can earn a maximum of €4,500 holiday earnings for outside of term-time employment. However, the hotel, tourism and hospitality sectors face acute staffing challenges, particularly this summer. The anecdotal evidence that I have received from these sectors reveal that students are telling employers that they cannot work additional hours during the summer for fear of losing their SUSI grant for the 2023-24 academic year. That is a perfectly legitimate fear for students who rely on the grant to assist them to get through college. With the arbitrary income disregard for students being set at €4,500, we have created a perverse disincentive to take on additional work this summer when the survival of many businesses rely on these very same students.

Rather than penalise students who take on additional working hours during holiday periods, we should reward them by exempting income earned during college holiday periods like summer and Christmas. At the very least, the income disregard should be increased considerably from €4,500 to take account of the wage increases that have happened in recent years, inflation and the acute staff shortages in the economy that I have referenced. Students should not fear taking on additional work during the busy summer period because it may affect their grant in subsequent years.

I genuinely believe my proposal is realistic and sensible, and I was delighted to bring it to a recent meeting of our Fine Gael parliamentary party. I thank the Minister for his work on this matter and for taking my proposal seriously. He has engaged widely with students' unions and business representative organisations around this matter. I also know that he is actively working with his officials on this proposal. However, I stress the importance of not only an early decision but a communications and PR campaign around changes that may be made so that students, and employers, are aware of them now because today is 1 June 1 and the summer is upon us.

I believe that flexibility on this matter would be a win-win for all concerned. It would encourage students to take on additional work that, in turn, would support the tourism and hospitality sectors. Most importantly, the initiative would put more money in the pockets of students without them having to worry about how additional work would affect their eligibility for a SUSI grant in future academic years.

Simon Harris (Wicklow, Fine Gael)
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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.

John Cummins (Fine Gael)
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I thank the Minister for his comprehensive reply and for taking this proposal, seeing the benefits of it and, as he stated at the outset, seeing it for what it is - a common-sense proposal that will benefit students and employers and help to assist in addressing the staff shortages we have in the economy at present.

I welcome that the Minister stated he will make this change but I stress again the importance of an early decision on this. We are now in the summer, and notwithstanding that it has no impact on the next academic year, 2022-2023, students look forward to the academic year of 2023-2024, on which this summer's earnings will have an impact.

Striking that balance is important. We cannot disrupt the education of full-time students but at the same time we must recognise that students should work during the summer. As a State, we should reward them for doing so and not put a penalty in place, in effect, for taking up employment.

I welcome the changes the Minister is to make and I stress the urgency of bringing them forward as early as possible.

Simon Harris (Wicklow, Fine Gael)
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I largely agree with everything the Senator said. When it was set as the income level in 2016, €4,500 was worth a different amount in real terms. The world has changed, including in the context of inflation and in terms of minimum wage changes.

This is a common-sense proposal the Senator is bringing forward but I often find common sense is not that common. It is important when we have a good idea that we recognise it and try to move on it.

I have yet to work through with my officials and with colleagues in the Department of Public Expenditure and Reform the appropriate level at which to set it but it would have to be at least at a level that recognises the change in terms of the real value of €4,500 and what that would be today, and any minimum wage changes that have taken place.

I appreciate the urgency of doing this quickly and I am endeavouring to do so as quickly as possible. I thank the Senator again for his proposal.