Dáil Éireann Debate, Thursday - 19 October 2023
133. Deputy Gary Gannon asked the Minister for Further and Higher Education, Research, Innovation and Science the reason why the €1,000 reduction in student contribution fees in Budget 2024 has been deemed a once off measure by his Department. [45746/23]
View answerThe Deputy will be aware that Budget 2024 contains a package of measures to support households with the cost of living. These include a number of measures targeted at further and higher education students and their families. These include:
• A €1,000 reduction in the student contribution fee for higher education students eligible for the free fees initiative;
• An increase to the Postgraduate Fee Contribution Grant from €4000 to €5000;
• A once-off reduction of 33 per cent in the contribution fee for apprentices in higher education;
• A further €8.1 million investment in the Student Assistance Fund for the 2023/24 academic year bringing the total to over €17 million;
• Renters’ tax credit is being extended to parents who pay for student children’s rent in the case of Rent a *Room accommodation or “digs” -this change will also apply retrospectively for the years 2022 and 2023;
• The removal of Post Leaving Cert (PLC) fees from September 2024;
• An increase to all non-adjacent maintenance rates by €615 and adjacent maintenance rates by 10% from September 2024 -eligible PLC and Undergraduate students will see a pro-rata increase effective from January 2024; and
• The full restoration of student maintenance grants for post graduates from September 2024 for the first time since the financial crash. A pro-rata increase will also be effective from January 2024.
In framing this year’s budget, the Government was conscious of the cost of living challenges faced by students and their families. These challenges have primarily been driven by major external shocks such as the war in Ukraine and Covid.
Having peaked in October 2022, the downward trend in annual inflation has meant a slowing in the rate of additional pressures faced by families due to growing prices. At the same time, the continued strong performances of the labour market and domestic economy have enabled average incomes to rise. These factors have allowed the Government frame a budget, which includes a number of temporary and permanent supports, primarily aimed at offsetting the temporary effects of inflation on households and businesses. It is in this context that I was able to secure the once off €1,000 reduction in the student contribution fee for higher education students.
I have been clear that I want to see the student's contribution towards tuition fees in higher education reduce in a meaningful way and I have made significant progress in providing permanent additional student contribution supports for students.
Students may be eligible to receive supports towards paying the student contribution through the Student Grant Scheme as administered by SUSI. In in 2022/23 over 50,000 students received funding to pay the student contribution in full and paid no tuition fees.
As part of Budget 2024, with effect from September 2024, I am increasing the income threshold for students to avail of the 100% student contribution support to €55,924. This change will build on the significant changes introduced in Budget 2023 where I made changes to the Student Grant Scheme to introduce a permanent new rate of student contribution support through SUSI from September 2023.
For students whose families have incomes between €62,000 and €100,000, the new grant provides a €500 support towards the undergraduate student contribution payable by free fees eligible undergraduate students. I also increased the income limit for students to avail of the 50% student contribution grant.
These changes demonstrate my commitment to reducing the student contribution payable by students in a sustainable manner and I will continue to work through the annual Estimates process to further enhance student supports.
