The potential cost of making adjustments to the student contribution under the Free Fees Initiative may vary from year to year, depending on the number of eligible students attending higher education and the number of students availing of student contribution supports from SUSI. These variables make it difficult to estimate the potential cost over a number of years.
My Department published an options paper in 2025 where the cost of reducing the student contribution by various amounts was estimated. As part of budget 2026, I subsequently introduced a permanent reduction of €500 in the student contribution charge. This flat rate reduction reduced the rate from €3,000 to €2,500. It has an estimated cost of €52.9 million and this is the net additional cost to the State after allowing for savings that would accrue on the SUSI grant scheme.
The cost of the various options sought by the Deputy, and other potential options, are set out in last year’s options paper which is available online at www.gov.ie/en/department-of-further-and-higher-education-research-innovation-and-science/publications/funding-the-future-an-annual-options-paper-on-the-cost-of-higher-education-2025/
Ahead of budget 2027, I intend to publish the 2026 options paper. This will identify costs and potential impacts of various policy options aimed at reducing the cost of higher education. This will inform decisions ahead of budget 2027.