The Budget outcome for Higher Education represents a failure to invest in the future. It puts at risk the skills and research capacity Ireland needs to remain competitive.
In 2022 Government acknowledged the sector was underfunded by 307m euros a year. In Budget 2025 the Government promised 150m euros extra funding by 2029. That is not being delivered, with only 10m of new core funding this year.
Budgets since 2022 have reduced the original funding gap, but, at the same time, unfunded growth in the student population, unfunded pay awards and wider inflation mean that the real gap in funding will remain over 250m euros a year.
National Training Fund money for AI-related skills is welcome, as, of course, are steps to ease the financial burden on students and families. But the financial burden on universities remains essentially untouched. State funding per student is now 30% lower in real terms than in 2008. Ireland ranks 36th out of 37 OECD countries for investment in higher education as a share of GDP.
This under-investment means we will not be able to respond to increased student demand, including for life-long learning. There will be increased reliance on international students to balance our books, with no new money for student accommodation or to sustain the quality of our educational offer.
In 1972 there were 30,000 people in higher education and 1million people in jobs. Today there are 250,000 students and almost 3 million people in employment. This is no coincidence. Higher growth and employment depend on higher education.
Not funding the future risks unrealised potential for our country and is an opportunity not taken to future proof our economy and society for the challenges ahead.
Ends.