On Tuesday 7 October, the Government’s Budget 2026 was announced by then Minister for Finance Paschal Donohue, and Minister for Public Expenditure and Reform Jack Chambers, outlining a range of measures affecting third-level students, including; a permanent reduction in undergraduate fees and changes to student support schemes. While students have expressed disappointment with the package, Budget 2026 is a step forward towards lower long-term costs for students.
Central to the education measures in Budget 2026 is a €500 permanent reduction in the undergraduate student contribution fees. Lowering fees from €3,000 to €2,500, commencing for the 2025/26 academic year. This represents the first long-lasting cut to student contribution fees in over three decades.
In recent times, students have benefitted from temporary once-off cost-of-living measures that reduced the fee by €1,000, with students paying a contribution fee of €2,000 in the past two academic years. As those temporary supports have now ended, this new €2,500 rate represents an increase compared to previous years, a factor that has contributed to student dissatisfaction. Students feel this permanent cut is misleading and feels like a raise.
However, unlike previous temporary reductions, the €500 decrease is permanent and will apply to future cohorts of students; a move that will provide greater certainty and constitute progress toward lowering the overall cost of third-level education.
Budget 2026 also introduced changes to the SUSI (Student Universal Support Ireland) scheme:
● The income threshold to receive a student contribution grant of €500 will rise from €115,000 to €120,000, the highest increase ever.
● SUSI non-adjacent payments, for students living 30km or more from their college campus, will rise by €200 to €430 from September 2026, with a pro-rata increase for the current academic year.
● The Postgraduate SUSI contribution fee grant will rise from €4,000 to €4,500.
These measures will ease financial pressures on students with the cost of rent, travel, and general day-to-day expenses, particularly for those studying away from home.
Despite the permanent reduction in student contribution fees and expanded supports, students have expressed disappointment with Budget 2026. Many point to high accommodation costs, travel expenses and general day-to-day cost-of-living pressures, arguing that the measures don’t go far enough. The end of the temporary €1,000 fee reduction means that students will pay more this year than last, despite the headline cut.
While Budget 2026 has been met with strong criticism from students, the €500 permanent reduction in student contribution fees should be recognised as a step in the right direction. It signals a shift away from reliance on temporary cost-of-living measures and towards more permanent solutions to student contribution fees.
However, further action will be required in future budgets to ease the financial burden of third-level education, especially regarding the housing and cost-of-living crisis.
