Budget means higher rents likely to wipe out student fee cuts – Senator Laura Harmon
Budget means higher rents likely to wipe out student fee cuts - Senator Laura Harmon - The Labour Party
- Government to cut student fees by €150 while raising the rent-a-room tax-free ceiling by €2,000.
Labour further and higher education spokesperson Senator Laura Harmon has today warned that Government risks cancelling out its €150 student contribution fee reduction by increasing the rent-a-room tax-free threshold from €14,000 to €16,000 in Budget 2027. Senator Harmon called on Ministers to ensure students benefit from lower college costs rather than face higher accommodation bills.
Senator Harmon said:
“We welcome the €150 reduction in student contribution fees as a start. But Government is giving with one hand and risking taking back far more with the other.
“Increasing the rent-a-room threshold by €2,000 gives homeowners scope to collect more rental income tax-free. It risks encouraging higher charges in a market where students already struggle to find somewhere affordable.
“Even a small rent increase could swallow the entire fee reduction. Students could save €150 on fees only to pay hundreds more for their accommodation. That would leave them worse off despite Government’s promises to cut college costs.
“Government can’t give students a modest relief on fees while opening the door to higher rents. Ministers must invest in affordable student accommodation and protect students renting rooms from unaffordable increases. The test of this Budget is whether students can afford to go to college. A €150 fee cut means little if higher rents leave them worse off.”