Minister Lawless announces first-ever permanent cut to student contribution fee, major increase in SUSI grants and the income threshold, and record investment in apprenticeships
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From: Department of Further and Higher Education, Research, Innovation and Science
- Published on: 8 October 2025
- Last updated on: 15 October 2025
Minister for Further and Higher Education, Research, Innovation and Science, James Lawless, joined by Minister of State with special responsibility for Further Education, Apprenticeship, Construction and Climate Skills, Marian Harkin, has today announced a major Budget 2026 package that provides permanent support for students and their families.
Focused on affordability, access and long-term certainty, the measures will help more learners enter and succeed in education, reduce financial pressure, widen participation, and strengthen pathways into education and training nationwide.
Supporting students and families
Permanent €500 reduction in the student contribution fee – the first permanent reduction since free fees were introduced in 1995. Apprentices in higher education will also see an up to 17% cut to their contribution, applied on a pro-rata basis.
More families will qualify for student grants - the income threshold to receive a SUSI student contribution grant will rise to €120,000 – the highest ever. This change could benefit thousands of additional undergraduate students.
30,000 students to get more support when living or travelling away from home - from September 2026, SUSI non-adjacent payments will rise by €200–€430, with a pro-rata increase this academic year - helping students who live 30km or more from their college campus with the cost of rent, travel, and day-to-day living.
Postgraduate support boosted - the SUSI postgraduate fee contribution grant is rising from €4,000 to €4,500, backed by a €1 million investment.
Investing in apprenticeships, skills and research
Record €79 million investment in apprenticeships – funding has more than doubled since 2020, rising from €184 million to over €400 million by 2026. It’s the strongest backing yet for hands-on learning and career-ready skills.
Increase in the Research and Development Tax Credit from 30% to 35% – demonstrating our commitment to the research sector, promoting collaboration between industry and academia, and positioning ourselves as a competitive destination for innovative companies and startups.
Expanding healthcare education
Over 1,100 additional healthcare course places will be created - backed by a €23.5 million investment, this major expansion includes medicine, nursing, disability therapies and social care - a 27% increase in capacity to train the next generation of healthcare professionals.
Inclusion and wellbeing on campus
€1 million for student mental health and healthy campus initiatives - supporting wellbeing across higher education institutions.
€3 million boost for students with disabilities - includes €1 million for higher education and €2 million for further education and training colleges – supporting over 22,000 students and building a more inclusive education system. Included in the additional funding for further education and training is the provision to cover transport costs for learners with intellectual disabilities. This is part of our wider commitment to building a more inclusive and accessible education system.
Building for the future
€810 million in capital funding for the Further and Higher Education sector – an almost 20% increase under the National Development Plan in 2026. This investment will accelerate the delivery of infrastructure projects and mark a step change in the State’s support for research and innovation.
Speaking today, Minister Lawless said:
“This is a Budget that puts students first. From day one, I’ve been focused on making education more affordable, more accessible, and on supporting those who need it most. Budget 2026 follows through on that commitment, and delivers real, lasting change.
“I’m announcing a €500 cut to the student contribution fee, the first permanent cut in over three decades. It’s a landmark moment that will ease financial pressure for 108,000 students and their families.
“I’m also increasing the income threshold for the student contribution grant. Combined with the permanent fee reduction, this means that eligible undergraduate students from households earning under €120,000 will pay no more than €2,000 towards the student contribution charge from next year. That’s a meaningful step toward a fairer, more affordable system.
“We’re enhancing supports for students living away from home by increasing the non-adjacent rate of the SUSI payments, helping 30,000 students who live more than 30 kilometres from their college campus with the cost of rent, travel, and daily life. It’s targeted support that removes barriers and makes access to education more possible.
“I’m also supporting those on the next stage of their educational journey by permanently reducing the cost of postgraduate study for eligible SUSI recipients, ensuring that opportunity doesn’t stop at undergraduate level.
“Apprenticeships are the engine room of Ireland’s infrastructure ambitions, that’s why we are delivering the largest-ever investment in apprenticeships, because whether it’s housing, healthcare, transport or energy, every major project depends on a skilled, capable workforce.
“We are also creating over 1,100 new healthcare course places, including medicine, nursing, disability therapies and social care. This is a major expansion that will help train the next generation of healthcare professionals and strengthen our health, disability services, and special education sectors for years to come.
“We’re making education more affordable and accessible, and backing the talent that will power Ireland’s future. This Budget delivers real change, reducing pressure today, expanding opportunity tomorrow, and setting the course for lasting progress.”
Minister Harkin added:
“I am allocating a ringfenced Skills Package in 2026 to continue advancing skills development in strategically important economic sectors, while also ensuring that upskilling and reskilling opportunities remain accessible to the broader workforce.
“A range of supports will be targeted to those who are currently less likely to engage in upskilling opportunities, for example older workers, those employed in smaller businesses, and those working in the Community and Voluntary sector.
“Funding will be allocated to build on existing momentum to further expand the construction and green talent pipeline in support of government priorities.
“I warmly welcome the significant government investment in apprenticeship announced today. This is more than an investment in education – it’s an investment in people, opportunity and Ireland’s future.
“This government has made it a priority to ensure that apprenticeships can support many sectors of the economy. Today, there are 78 different programmes available across a wide range of industries - from technology and finance to healthcare, engineering, and beyond.
“My top priority in education has always been inclusion – ensuring every learner can pursue opportunities that reflect their strengths and ambitions. Apprenticeships embody inclusion: learning with experts, gaining qualifications, and earning a wage.
“With this investment, my department will continue to ensure access to education and employment for underrepresented groups – including women, socio-economically disadvantaged learners, and the Travelling community.
“Apprenticeships offer a practical, hands-on pathway for young people to thrive, regardless of background. This major investment ensures more people from all walks of life can access apprenticeships and help shape Ireland’s future workforce.”