4062. Deputy Robert O'Donoghue asked the Minister for Further and Higher Education, Research, Innovation and Science the way in which income earned by students during the summer period is treated in SUSI assessments; if he accepts that summer employment is frequently undertaken specifically to meet educational and living costs; if he will consider excluding a proportion of summer earnings from means testing; and if he will make a statement on the matter. [61534/26]

4063. Deputy Robert O'Donoghue asked the Minister for Further and Higher Education, Research, Innovation and Science the assessment his Department has made on the number of SUSI-supported students who undertake part-time employment during the academic year; whether it has examined if SUSI eligibility discourages students from taking employment; if he will consider introducing a student earnings disregard; and if he will make a statement on the matter. [61533/26]

I propose to take Questions Nos. 4062 and 4063 together.

Under the Student Grant Scheme, income from employment which represents holiday earnings outside of term time (Easter, Summer and Christmas holidays) can be deducted when determining the reckonable income of an applicant. The holiday earnings exemption is being increased from €8,424 to €8,830 for the 2026/27 academic year. This means that any student earnings up to this limit earned during the 12-week summer period will be disregarded for SUSI income assessment purposes.

In relation to the Student Part-Time Fee Scheme for Specified Undergraduate Courses the income disregard is broader. A student may deduct a portion of their earnings up to the same annual amount of €8,830 but the disregard is not restricted to earnings earned outside term time. This reflects the fact that many part-time learners are in employment throughout the year and are combining work with study.

The holiday earnings limit has increased over the past number of years in line with increases in the minimum wage. The reason for the limit is to mitigate against students working so much during their education that it negatively impacts on their ability to fully participate in their course.

There are also broader budgetary considerations. The Student Grant Scheme is reviewed on an annual basis, and any improvements are subject to the overall estimates and budgetary process undertaken by all Government Departments having regard to overall resource constraints and other competing demands on public funding.

In recent years, my Department has published a number of annual options papers on measures to reduce the cost of education. The most recent paper included a costed option to remove the provision which limits the deduction of holiday earnings to “earnings outside of term time”. This option was costed in the last year’s paper at between €17m and €26m.

I am conscious of reducing the cost of education for students and I was pleased to be in a position in Budget 2026 to permanently reduce the Student Contribution by €500 for free fees eligible students and to increase maintenance grants for non-adjacent grant holders. In addition to this, from September 2026, the income threshold to avail of a €500 Student Contribution Grant will also increase to €120,000.

To inform decision-making head of Budget 2027, I will publish an options paper in the coming weeks which will identify costs and potential impacts of various policy options aimed at reducing the cost of higher education.

While I cannot confirm the specific items that will be included in this Budget, options to support students and reduce financial barriers will be key priorities for me as part of Budget negotiations.