4065. Deputy Robert O'Donoghue asked the Minister for Further and Higher Education, Research, Innovation and Science whether he will undertake a fundamental review of the SUSI means-testing methodology, with particular regard to the treatment of student earnings, the financial circumstances of middle-income families, the treatment of self-employed income and the extent to which the current thresholds reflect the actual cost of higher education; whether he will consider introducing a student income disregard in order that students are not financially penalised for working to support themselves through college; and if he will make a statement on the matter. [61531/26]

Student grant applications are means tested on gross income from all sources earned inside and outside the State within a specified reference period. Therefore, all income is assessed from the same starting point, eliminating any distortion which might arise from different spending decisions if outgoings were also to be assessed. This means test is applied nationally to all applicants. In the case of both employed and self-employed applicants, gross income, before deduction of income tax or universal social charge, is assessed.

Under the terms of the Student Grant Scheme, a core principle is that there is consistency of approach for applicants as part of the means assessment process. The terms and conditions of funding are applied impartially to all applicants, and this approach ensures fairness to all applying for a student grant.

However, certain specified social welfare and support payments are excluded for income assessment purposes under Article 22(4) of the Student Grant Scheme. These include the Housing Assistance Payment and Rental Accommodation Scheme, which are both local authority supports for individuals and families at risk of homelessness. In addition to this, income from Rent Supplement is not included in calculating reckonable income for SUSI purposes.

Many long-term payments from the Department of Social Protection are not disregarded. However, Schedule 2 of the 2026 Student Grant Scheme lists the Eligible Long-term payments for the highest rate of maintenance grant for the 2026/27 academic year.

It should be noted that any change or modification to the provisions which set out reckonable income, such as the disregard of any additional payments, or changes to how certain payments are treated under the scheme, would entail significant cost.

Budget 2026 provided significant improvements to existing supports under the Student Grant Scheme for the 2026/27 academic year. These enhancements include an increase in all non-adjacent maintenance rates and an increase of the SUSI threshold up to €120,000.

The Scheme also provides for a deduction in respect of student earnings. For the 2026/27 academic year, income earned by students during holiday periods outside term time may be disregarded up to a maximum of €8,830. Under the Student Part-Time Fee Scheme for Specified Undergraduate Courses, the same earnings disregard applies, but it is not restricted to earnings earned outside term time.The purpose of this limit is to support students who undertake part-time work while avoiding a situation where excessive working hours could negatively affect their participation and success in education.

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.

My Department in recent years has published an annual options paper on reducing the cost of education. Within the published papers options have costed removing the provision which limits the deduction of holiday earnings to earnings outside of term time. In September 2025 this was costed within a range of €17m-€26m.

It is important to note that the paper considers opportunity cost.

For example, if the provision which limits the deduction of holiday earnings to "earnings outside of term time" was removed this may allow an applicant's exemption limit to be increased in circumstances where the applicant themselves earned up to the limit allowable across the year. (In effect this is akin to a very specific income threshold increase for one cohort i.e. students earnings). However, such an option may limit the potential to increase overall SUSI income thresholds which would benefit all applicants, including students who are earning.

I am conscious of reducing the cost of education for students. Successive Budgets have enhanced student supports, including higher maintenance grants and increased income thresholds. Budget 2026 increased SUSI thresholds up to €120,000, raised non-adjacent maintenance grant rates, permanently reduced the student contribution charge by €500, and increased the Postgraduate Fee Contribution Grant to €4,500.

From September 2026, further increases to non-adjacent maintenance grants will take effect, while the special rate income threshold will rise from €27,400 to €28,600 and the €500 student contribution grant threshold from €115,000 to €120,000. Eligible undergraduate students from households with incomes below €120,000 will pay no more than €2,000 towards the student contribution charge in 2026/27.

The Department remains committed to developing equitable, sustainable and affordable student supports. To inform decision-making ahead of Budget 2027, I will publish an options paper in the coming weeks which will dentify 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.