Budget 2027: College fees to be cut by €1,500 for parents with two children in college

Negotiations lasted late into yesterday evening, as Micheál Martin, Simon Harris, and Seán Canney met with public expenditure minister Jack Chambers to hammer out the finals details of Budget 2027. 

Budget 2027 will deliver a potluck package for families, with many supports being limited depending on the age and number of children.

Students will see a fee cut if more than one person in their family is attending third level.

Parents with two children in college will see their student contribution fee bill reduced by up to €1,500, the Irish Examiner can reveal.

A last-ditch effort yesterday to have €250 knocked off the student contribution fee was not expected to be successful.

Parents of children younger than seven are to receive a “significant” reduction in childcare costs, expected to amount to around €1,000 a year.

However, those with children over the age of seven will not receive the same level of savings.

It comes as fraught budget negotiations lasted late into yesterday evening, as Taoiseach Micheál Martin, Tánaiste Simon Harris, and minister of State with responsibility for road safety Seán Canney met with public expenditure minister Jack Chambers to hammer out the finals details of Budget 2027, which will be unveiled tomorrow.

It comes off the back of growing frustration from ministers towards Mr Chambers amid a clamour to reduce the growth in spending.

Higher education minister James Lawless secured fee discounts where families have multiple students in third-level education.

This includes a €750 fee cut for each child when parents have two or more students in third-level education, and their household income is less than €120,000 a year.

It means fees will be reduced by €1,500 for parents with two children in college, €2,250 when three children are in college, and so forth.

The cuts will be delivered through a Susi grant.

Families with incomes of between €120,000 and €150,000 will qualify for a new €500 grant per third-level student.

Families currently receiving grants covering 50% of the €2,500 student contribution fee will see their grants increased to 75% when they have more than one child in college. This will reduce their fees to €625 per student.

Susi maintenance grants, which are paid towards students’ living costs, will increase by 4.5%, with some students set to receive up to €357 extra per year, depending on their eligibility.

The Irish Examiner understands that “good progress was made” on childcare costs by the leaders yesterday, but that negotiations will continue today.

It is expected that there will be an increase to the National Childcare Scheme, with emphasis on children aged under five in early years education, as well as junior and senior infants who require more hours in childcare than older children.

It is hoped that parents will save at least €1,000 over the course of the year in fees for children in this cohort, with negotiations expected to continue today to determine the exact fees and savings.

The change will take effect from next September, to allow the systems to work out how to differentiate between age groups.

There should, however, be some cuts to childcare costs for parents with older children as the maximum fees chargeable by providers is also expected to be cut. This will also benefit parents of primary school children attending after-school provision.

Meanwhile, the social protection package will see a €10 weekly increase in pension and unemployment benefits but was still being negotiated yesterday evening.

A weekly increase of €5 to the fuel allowance has been agreed, rather than a lump sum payment. As reported by this newspaper earlier this week, a €500 cost of disability lump sum payment will be paid rather than a monthly allowance.

Negotiations on a tax package will continue today.

Funding for transport services and defence forces recruits 

Several departments settled their budgets over the weekend, including the Department of Transport. The Irish Examiner understands significant funding for public service obligation (PSO) public transport routes and services will deliver funding for over 140 new services in 2027.

Defence minister Helen McEntee secured funding for 400 Permanent Defence Force recruits, and almost 100 new civilian staff.

It is also expected that there will be a “significant increase in non-pay current expenditure” to support modernisation and improve conditions for Defence Force personnel.

Justice minister Jim O’Callaghan, meanwhile, received money to recruit 1,000 new gardaí, as well as additional funding for the International Protection Office.

Speaking at the Fianna Fáil Cairde Fáil gala dinner in Dublin on Saturday evening, the Taoiseach suggested that the Government was leaning towards halting carbon tax increases on kerosene for the rest of the Government’s term in office.

A Fianna Fáil push to abolish stamp duty for first time buyers was also continuing this weekend, with proposals to target it, including excluding a certain proportion of the house price from the tax, suggested.