The new Budget 2027, presented on October 6th, brings changes for students in third-level education across Ireland and involves a package of €8.6 billion, with €7 billion in additional spending and €1.65 billion in tax reductions.
Third-Level Education
A further permanent cut of €150 in the student contribution fee has been confirmed. This comes after last year’s reduction by €500, as well as rumours earlier this week concerning a potential €250 decrease being discussed by Minister James Lawless in late negotiations. This means that the maximum student contribution fee to be paid has now fallen from €2,500 to €2,350. This change is effective immediately, and students will qualify for a €150 refund. Furthermore, the threshold for tax relief for tuition fees will be reduced, so that it aligns with this change. SUSI maintenance grants will also rise by 4.5 per cent from January 1st, 2027.
Aditionally, from September 2027, families on an income below €150,000 per year, and with more than one child in college are to be liable for a new €500 student contribution grant per student. This means that such families could now see their student contribution costs reduced by up to €1,300 per year and thousands more families will become eligible for support for the first time.
In total, €5.3 billion is to be allocated to the Department of Further and Higher Education, Research, Innovation and Science, with €360 million to be dedicated to the National Training Fund, and €150 million to support workforce development, including AI and digital skills needed for future jobs.
According to Minister Jack Chambers, these changes will benefit over 150,000 students and their families.
Public Transport
€5.5 billion will be allocated to Irish Transport, including further funding for the DART+ scheme, BusConnects, heavy rail, and major road developments. An additional €6 billion will be allocated towards progress for MetroLink between 2027 and 2030.
Minimum Wage
The minimum wage is set to rise 79 cents to €14.94. This comes after the rise of 65 cents in last year’s budget.
Renting
Rent-a-Room schemes are set to benefit from this new budget with the tax-free threshold up €2,000, from €14,000 to €16,000. Additionally, newly installed detached auxiliary dwellings of 32-45 square meters will be included in the Rent-a-Room scheme. Furthermore, the renters tax credit is to rise by €150 to €1,150 for single people and €2,300 for couples.
Mental and Sexual Healthcare
€5.3 million will be dedicated towards additional funding for Domestic, Sexual and Gender Based Violence initiatives.
A new expansion of the Free Contraception Scheme to age 37 will extend access to healthcare supports for more people. Previously, the services were available to people between 17 and 35.
33,000 extra hours of free counselling for men, young people and the LGBTQ+ community will be introduced.
Other
Among other changes, an increase in the tax on vapes, of 20 cents per 1ml, has also been announced. Previously it was set at €500 a litre (€1 for a 2ml vape). The Revenue Commissioners impose the tax on those who first supply e-liquid products in the State, mainly importers and manufacturers, in what is called the “first supply model”. An increase of €1 per box of cigarettes will also come into effect.
Carbon tax increases have been postponed, and the tax on kerosene and natural gas has been reduced to €48.50 per tonne.
€15 million will be offered in tax rebates for rural pubs, “to help keep pub doors open”.
