Rose Conway-Walsh (Mayo, Sinn Fein)
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71. To ask the Minister for Education and Skills if the student contribution charge is currently set at an appropriate level; when he will bring forward a sustainable funding model for third-level education; and if he will make a statement on the matter. [49755/21]

Simon Harris (Wicklow, Fine Gael)
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Under the Department’s Free Fees Initiative (FFI), the Exchequer provides funding toward the tuition fee costs of eligible undergraduate higher education students. All students eligible for the scheme receive state support whereby the Exchequer pays the cost of tuition fees exclusive of the student contribution. The student contribution applies annually to all FFI eligible students and the current rate is €3,000 per annum.

In considering the appropriate level of student contribution it is important to consider that the student contribution charge replaced the previous Student Services Charge which were up to €1,500 in 2010/11. Importantly, the Exchequer pays the student contribution, in full or part, on behalf of students who qualify under the student grant scheme. In 2020/21 over 65,000 or approximately 45% of free fee eligible students had all or part of their student contribution funding paid on their behalf through student support grants. We are reviewing grants available through SUSI to ensure that students supports are appropriate,

The student contribution costs as shared between the students and the state is a significant element of the overall income of our higher education institutions. In this regard the student contribution rate requires consideration in the context of a sustainable model of funding for higher education.

My Department's statement of strategy, which I published on 8 March, contains a commitment to put in place that sustainable funding model for higher education. This is essential in ensuring our higher education institutions can effectively meet high standards of quality and performance and achieve critical outcomes for society and the economy.

In that context, I am very encouraged by the recent completion of a comprehensive economic evaluation of the funding options presented in the Report of the Expert Group on Future Funding for Higher Education (2016) as supported under the European Commission DG Reform Programme. My Department has commenced its examination of the report's analysis, findings, conclusions and recommendations in order to develop proposals to bring present to Government to seek it’s support to a sustainable future funding model and transformed FET and HE sector as contained in the Statement of Strategy.

will be publishing the DG Reform report on sustainable future funding of higher education and the tertiary system later this year. This will provide the basis for an implementation and transformation process over the coming years in collaboration with the sector and wider stakeholders, This will also including detailed engagement between DFHERIS and the Department of Public Expenditure and Reform. As a first step, this Budget provides for €222 million in funding for higher education institutions including university superannuation funding over two years, which will strengthen university balance sheets. This funding allocation will also provide continued additional investment in capacity building and additional places in the higher education sector in response to demographic pressures, Covid and the exceptional demand from this year's calculated grades leaving certificate.

In terms of funding, in advance of and since the publication of the 2016 a significant programme of re-investment in higher education has been implemented. Since 2015 annual expenditure allocated to higher education has increased by more than 40%. In 2022 this allocation will be in excess of €2billion

This significant allocation of public resources is a clear demonstration of the Government's commitment to meeting the funding needs of the higher education sector.