Budget 2027: Student contribution fees to be cut permanently 

Student fees are to be cut permanently by €150 as part of Budget 2027

Student fees are to be cut permanently by €150 as part of Budget 2027, the Minister for Public Expenditure announced on Tuesday. 

New student contribution fee grants for families with more than one child in college and an increase in SUSI maintenance grant rates from January were also among the measures announced for the higher education sector. 

The Department of Further and Higher Education will receive a budget allocation of €5.3bn for 2027. This will include a new three-year National Training Fund skills package. 

Ireland is in a good position to take advantage of "the opportunities that AI offers, but only if we equip our people with the skills of the future", public expenditure minister Jack Chambers said. 

More details on the department's allocations for 2027 will be discussed in the coming days. The Irish Universities Association (IUA) said "under-investment" in the sector means universities will not be able to tackle increased student demand. 

The IUA director general Paul Johnston said failure to tackle funding "puts at risk the skills and research capacity Ireland needs to remain competitive". 

In Budget 2025, the Government "promised" €150m extra funding by 2029, he added. 

"That is not being delivered, with only €10m of new core funding this year.

"This under-investment means we will not be able to respond to increased student demand, including for life-long learning. There will be increased reliance on international students to balance our books, with no new money for student accommodation or to sustain the quality of our educational offer."

The Technological Universities Association (TUA) also stressed the need for sustainable core investment.

“Reducing the cost of higher education will make a real difference to students and families," said TUA chief executive Claire McGee. "But affordability is only part of the equation.

"We know student numbers will grow significantly over the next five years, yet our university sector is already significantly underfunded. That growth is a huge opportunity for Ireland, but only if we make the right investment decisions now." 

She added: "We need to invest not only in places, but in the people, research and supports that make those places count. The important conversation about the long-term funding of higher education needs to start now.”

Meanwhile, plans to raise the rent-a-room tax-free ceiling by €2,000 threatens to cancel out the student contribution fee reduction, Labour Further and Higher Education spokesperson Laura Harmon warned. 

“Increasing the rent-a-room threshold by €2,000 gives homeowners scope to collect more rental income tax-free. It risks encouraging higher charges in a market where students already struggle to find somewhere affordable." 

• Jess Casey is Education Correspondent.