Dáil Éireann Debate, Thursday - 5 October 2023
355. Deputy Sorca Clarke asked the Minister for Further and Higher Education, Research, Innovation and Science the estimated cost if the student contribution charge were reduced by €650 for the 2024-2025 academic year. [43366/23]
View answerAs the Deputy will be aware the State determines the rate of student contribution applicable to free fees eligible students. A flat rate reduction in the student contribution payable by free fees eligible students would require increased State funding, on a recurring basis, to compensate higher education institutions for the loss of income associated with FFI tuition fee places.
During August, in advance of Budget 2024, I published an options paper setting out various possible measures to address the cost of education. www.gov.ie/en/publication/907cb-funding-the-future-an-annual-options-paper-on-the-cost-of-higher-education/.
The various options set out in this paper will inform the deliberations regarding cost of education measures in Budget 2024 and includes projected costs associated with a flat reduction of the student contribution in 2023/24.
Ultimately, the additional cost to the State of operating the FFI, should a flat rate reduction be applied, would be dependent on the number of FFI and SUSI eligible students in any given academic year.
At this time costings for 2024/25 are not available, however based on the methodology applied in the aforementioned cost of education paper it is estimated that a €650 reduction in the student contribution payable by free fees eligible students would be €59.7m in 2023/24. Based on overall projected demographic growth, the costs could increase by c1.5% to 2% in 2024/25.
