Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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2610.To ask the Minister for Education and Skills to provide details of the changes to the student grant scheme in Budget 2024; and if he will make a statement on the matter. [32197/24]

Patrick O'Donovan (Limerick County, Fine Gael)
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I am very much aware that the rising cost of living is impacting students, and my Department has ensured that measures to support students have formed a core part of the Government's overall response to cost of living issues.

Budget 2024 has had the effect of reducing the cost of higher education for the majority of students. For the second year in a row, as a cost of living measure my Department has reduced the student contribution fee by €1,000 for free fees eligible students and increased the postgraduate fee contribution grant by €1,000.

For students who are in receipt of a maintenance grant there have been increases to maintenance grants over the past number of budgets. From September 2024 all non-adjacent maintenance rates will increase by €615 and all adjacent maintenance rates by 10%. The Deputy will be aware that this benefit has already commenced effective from January 2024 so maintenance grant recipients have seen their grant payments increase proportionally from that date.

Maintenance grants to eligible postgraduate students will be restored in full effective from September 2024 with eligible students during the 2023/24 academic year receiving pro-rata grants from January 2024.

Budget 2024 increased certain income thresholds which shall commence in September 2024:

•Increased income threshold for Band 4 maintenance rate from €46,790 to €50,840;

•Increased income threshold for 100% Student Contribution grant from €50,840 to €55,924.

Other changes in the 2024 Student Grant Scheme which are due to come into effect in September 2024 include:

• An increase in the threshold for the special rate of maintenance grant from €25,000 to €26,200;
• An increase in the threshold for Holiday Earnings from €6,552 to €7,925.

In addition the Rent Tax Credit is increasing to €750 per individual and €1,500 per jointly assessed couple for 2024 and 2025. Payments made by parents in respect of “digs” or rent-a-room arrangements for their children to attend an approved course will now qualify for the Rent Tax Credit. This is provided the claimant and their child are not related to the landlord. This change will apply retrospectively for the years 2022 and 2023.

In advance of Budget 2025 this autumn I will be publishing an options paper which will set out various possible measures to reduce the cost of education. I am doing this in order to facilitate public discussion on the various choices available to improve student supports.