The provision of funding to for Higher Education on an annual basis is part of overall expenditure management and budgetary policy. Queries in relation to the overall expenditure on Higher Education in relation to the national budget are more appropriate for the Department of Public Expenditure and Reform.
Government Funding for Higher Education:
In recent Government funding has demonstrably increased in the period 2016 to 2020 with increased planned investment in Higher Education, an increase of 25% compared to 2016 – an amount in the order of an additional €370 million bringing the total funding for the sector in 2020 to €1.87 billion (up from €1.5 billion in 2016).
In terms of Government funding the immediate matter to consider is that the delivery of further and higher education in the context of Covid-19 will cost the providers more not less. In 2020 the Government has provided additional funding in the amount of €168m to support the return of students to further and higher education. A further €47.5m is also being provided in 2020 to provide additional skills courses as part of the July stimulus programme.
Through Budget 2021
the Government has responded to the significant challenges including support to meet demographic needs including support of Leaving Certificate 2020 students, investing in access measures and building capacity to mitigate educational disadvantage, investing in research and skills as well as capital infrastructure.
The funding package from Budget 2021 includes:
- A €50 million fund to provide financial assistance to full time third level students in recognition of the impact of the Covid 19 pandemic on this group
- €120 million to reskill and upskill people affected by the pandemic
- Supporting a green recovery by rolling out a new retrofitting training scheme and a new climate action upskilling scheme.
- 50,000 further education and training places in 2020/2021;
- Extension of the Apprenticeship Incentivisation Scheme;
- Nearly €30 million will be invested in research to support researchers, build capacity, support Covid research, and strengthen north-south research links;
- Enhanced SUSI grant supports for post-grads and increased support for the PATH access initiative to increase participation in Higher Education from the most economically disadvantaged students.
- A review of SUSI to guide the future strategic direction of the scheme;
- Funding will be provided to sustain additional places in higher education and further increase Springboard places;
- Infrastructure investments to expand student places, upgrade existing infrastructure, modernise apprenticeship provision and progress the digital agenda;
- €15 million is being provided for minor capital works and equipment for higher education institutions.
Student Supports:
In terms of costs for students, the fees payable by a student can vary depending on a variety factors including the type of course and the student's access route including previous education.
Under the Department’s free fees schemes, the Exchequer provides funding toward the tuition fee costs of eligible undergraduate Higher Education students with students paying the student contribution. It is important to note in relation to this issue that under the Free Fees Schemes the Exchequer currently makes a very substantial contribution amounting to €340m to meeting the tuition fee costs of eligible undergraduate Higher Education students with those students who are required to pay the student contribution paying €3,000 per annum towards the cost of their studies. The last increase to the student contribution was in 2014/15. The State pays the contribution in full or part, through SUSI, for approximately 44% of students eligible for free fees.
Where students do not qualify for free fees funding, they pay the appropriate fee, either EU or Non-EU, as determined by each higher education institution.
The principal support provided by the Department in financial terms is the Student Grant Scheme. Under the terms of the Student Grant Scheme, grant assistance is awarded to students attending an approved course in an approved institution who meet the prescribed conditions of funding including those which relate to nationality, residency, previous academic attainment and means. Additional supports include the Student Assistance Fund, Programme for Access to Higher Education and the Fund for Students with Disabilities.
As the Deputy will be aware as part of Budget 2021, I announced enhanced SUSI grant supports for post-grads and increased support for the PATH access initiative to increase participation in Higher Education from the most economically disadvantaged students and a review of SUSI to guide the future strategic direction of the scheme. An important objective will be to ensure access to and continued participation in higher education by students from disadvantaged backgrounds.
I am of course very conscious of the immediate impacts of the COVID-19 pandemic on our students. Government has made available €50 million in funding to provide financial assistance to full time third level students in recognition of the impact of the Covid 19 pandemic on this group was included in Budget 2021. My officials and I are developing proposals for the utilisation of this funding for submission to Government prior to commencement.
This builds on the specific student supports in response to Covid, which I announced in July including a doubling of the Student Assistance Fund, and a €15 million technology fund for devices for students in further and higher education.
Higher Education Funding Reform:
Furthermore the development of a sustainable funding model for higher education is essential in light of the centrality of higher education. The future development of Ireland as an inclusive society and a knowledge economy against the backdrop of rapid technological change. In that context, a comprehensive economic evaluation of the funding options presented in the Report of the Expert Group on Future Funding for Higher Education is underway supported under the European Commission DG Reform Programme.
My Department is working closely with the European Commission and the independently appointed consultants. The key aim of this review is to investigate methods of increasing the sustainability of higher and further education provision in Ireland, including an examination of the funding options including the existing student contribution and other supports.
Completion of this work will allow for an informed debate on the appropriate policy approach to future funding which is fundamental to Ireland's economic and social sustainability.
All of the foregoing highlights my commitment and that of the Government to support students and learners in accessing and successfully participating in both higher and further education.
