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Budget 2027: Headline Increase Leaves University Core Funding Needs Largely Unmet

Submitted by ifutmedia on

Statement by Frank Jones, General Secretary of the Irish Federation of University Teachers

IFUT acknowledges the increased overall allocation for further and higher education, research, innovation and science in Budget 2027. However, confirmation that just €10 million in additional core funding is being provided under Funding the Future raises serious concerns about the Government’s response to the continuing underfunding of higher education.

IFUT shares the assessment of the Irish Congress of Trade Unions and its General Secretary, Owen Reidy, that Budget 2027 falls far short of the workers’ budget promised by Government. Congress has acknowledged progress on income tax while highlighting the continuing pressure of rising prices, the failure to restore tax relief on union subscriptions and the need for stronger investment in public services. These concerns are reflected in the limited progress on university core funding.

The Department’s total allocation for 2027 is €5.342 billion, comprising €4.417 billion in current expenditure and €925 million in capital funding. This covers further education, higher education, research and the National Training Fund. What matters for universities is how much additional funding reaches institutions to support teaching, research, staffing and student services.

The measures to ease financial pressures on students and families are welcome, including the permanent €150 reduction in the student contribution fee, the 4.5% increase in SUSI maintenance grants from January and enhanced supports for families with more than one child in higher education. IFUT continues to advocate the progressive replacement of student contributions with State funding, alongside adequate funding for institutions.

Investment in research infrastructure, apprenticeships and skills development is also welcome. The new €360 million National Training Fund skills package, including €150 million for skills resilience and adaptation to artificial intelligence, extends over three years. These targeted investments must be accompanied by sustained investment in the staff and institutions responsible for delivering education and training.

Core funding remains the central concern

IFUT’s Pre-Budget Submission 2027 called for sustained increases in core funding, investment that brings Ireland towards international standards, additional permanent academic staffing, action to replace insecure employment and support for sustainable research careers.

An additional €10 million under Funding the Future falls well short of the scale of investment required. The Irish Universities Association sought a €190 million annual increase in core grant funding and estimates that the sector’s continuing funding gap exceeds €250 million when student growth, unfunded pay awards and inflation are taken into account.

For staff, inadequate core funding means continued pressure on workloads, limited capacity to improve staff–student ratios and persistent insecurity for those employed on precarious contracts. For students, it limits the teaching, supervision and support that institutions can provide.

Government must ensure that universities receive adequate resources to meet agreed pay commitments while also improving educational provision. Funding existing obligations and expanding student places must be accompanied by investment that addresses the underlying shortfall.

The expenditure report also identifies a €53 million levy deducted from the Department’s current expenditure baseline. Its implications for staffing and services require clarification. The proposed changes to further education staffing arrangements also require meaningful engagement with the unions representing affected workers.

Tax relief on trade union subscriptions

Our submission also called for the restoration of a tax credit for trade union subscriptions. Such a measure would recognise the contribution of trade unions to workplace representation, collective bargaining and constructive industrial relations, while providing practical support to members.

Yesterday’s Budget announcement was silent on this proposal. Congress has also criticised the failure to restore this relief, highlighting the different treatment afforded to subscriptions to farming and business representative organisations.

We remain hopeful that the issue will be addressed in the forthcoming Finance legislation, which we expect to see in the coming days. IFUT will continue to press for its inclusion.

Accountability and engagement

IFUT, together with the ICTU Group of Further and Higher Education Unions, has sought a meeting with the Minister and further information on the allocation of the 2027 budget. We have requested clarity on additional core funding, provision for pay commitments and the implications of the expenditure levy, and have sought engagement on the need for sustained investment across the sector.

Budget 2027 must be judged by the improvements it enables in our institutions: secure employment, manageable workloads, sustainable research careers and a better education for students. The limited increase in core funding leaves substantial work to be done to deliver those outcomes.