Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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1240. To ask the Minister for Education and Skills the estimated full year cost of measures (details supplied). [41230/21]

Simon Harris (Wicklow, Fine Gael)
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In relation to tuition fees it is important to consider that the State currently provides very substantial financial support to undergraduate students in higher education towards the cost of their studies. This support has played a very significant role in facilitating access to and growth in higher education. What was previously the preserve of a relatively small proportion of the school leaving population is now much more widely available, as reflected in the current transfer rate from second to third level.

Through my Departments Free Fees Schemes the Exchequer currently contributes €340m to meeting the tuition fee costs of over 139,000 eligible undergraduate students in higher education. All students eligible for the scheme receive state support whereby the Exchequer pays the cost of tuition fees exclusive of the student contribution. In addition, the Exchequer pays the student contribution of €3,000 per annum in full or part, through SUSI, for approximately 44% of students eligible for free fees at a cost of over €180m.

The estimated net cost to the Exchequer of abolishing the student contribution charge is €245.5m in the academic year 2021/2022. This is the estimated net cost to the Exchequer factoring in the subsequent estimated reduction in the SUSI Student Grant budget, since the Exchequer would then no longer pay the Student Contribution on behalf of undergraduate students in receipt of student grant support. The costs for the Exchequer of reducing or abolishing the student contribution would increase in line with the demographic increases expected in the coming years up to 2030.

The figures above relate to full time undergraduate students who qualify for the Free Fees Initiative. They do not take account of fees charged by Higher Education Institutions such as fees for full-time undergraduate students who do not qualify for the Free Fees Initiative; part-time undergraduate tuition fees, post-graduate tuition fees students or other additional fees charged by HEIs.

As the Deputy is aware, Higher Education Institutions are autonomous bodies and are responsible for their own day-to-day management and operational affairs, including the management of academic affairs. They retain the right to determine their own policies and procedures. The total level of fees payable to the institution in the case of students not eligible for free fees funding (including postgraduate fees) or the charge of any ‘capitation’ type fees are therefore solely a matter for the relevant institution to determine in line with its own criteria. As estimated cost of the state fully supporting all such fees in not readily available.

In relation to student grants, it is not possible to definitively calculate the cost of the various adjustments that have been made to the student support system since 2008, particularly in light of the demographic changes that have taken place.

To put it in context, in 2008/09 there were 57,261 students who benefitted from grant support at a cost of €264m, whereas in 2020/21 there were over 74,000 students in receipt of grant support at a cost of €370m.

It is however, estimated that it would cost in excess of €100m to reverse all of the adjustments that have been made to the student grant scheme since 2008.

The Programme for Government contains commitments to, amongst other things, review SUSI eligibility criteria, adjacency rates and postgraduate grant supports. The review of the Student Grant Scheme is underway with over 250 submissions received via the public consultation process and over 9,000 survey responses were received through an online survey process. It is anticipated that the SUSI review will be completed later this year and will inform policy priorities for the next Estimates process and future considerations regarding the development of student grant policy. At this point I cannot pre-empt the outcome of the review to indicate when any proposed changes will come into effect.