According to IFUT, Budget 2025 was a missed opportunity to address the consequences of years of underfunding the higher education sector. 

IFUT General Secretary, Frank Jones said; “From an IFUT perspective, Minister Patrick O’Donovan’s announcement of funding for the tertiary education sector fails in any meaningful way to address the critical needs of the higher education sector and falls short of delivering on previous promises to increase funding by €307 million annually under the "Funding the Future" plan. 

“This budget reflects the government's continued underinvestment in the higher education sector. While it introduces some useful short-term measures, it fails to deliver on long-term promises for sustainable funding increases, leaves staff concerns unaddressed, and inadequately supports the research and capital needs of higher education institutions. The statement’s emphasis on industry skills and one-off student financial support, rather than on addressing structural challenges in funding, precarious employment, job security, and infrastructure, demonstrates a limited understanding of the true needs of the sector. This budget misses an opportunity to right many of the wrongs in the higher education sector.”

Failure to Meet Core Funding Promises

The government's commitment under the "Funding the Future" initiative, back in 2022, was to increase higher education funding by €307 million annually. However, the Minister’s announcement includes a modest increase of only €150 million over six years, falling well short of the expected €307 million per year. This significant shortfall does not adequately address the chronic underfunding that has plagued higher education institutions, especially in terms of staffing, research capacity, and student support services.

This underfunding exacerbates long-standing issues such as increasing workloads for academics, an over-use and dependence on precarious employment contracts, high staff-to-student ratios, and a failure to meet growing student numbers with adequate resources. The €50 million core funding pledged for this year is a small step, but it does not match the level of funding needed to improve working conditions or sustain the sector's quality. 

Focus on Short-Term One-Off Measures

The budget included several one-off measures, such as the €1,000 reduction in student fees and a 33% fee reduction for apprentices. While these measures may alleviate immediate financial pressures on students, they do not represent sustainable, long-term solutions. The cost-of-living crisis affecting students, as well as the structural funding issues facing the sector, require more than just one-off actions. The lack of long-term, guaranteed funding locks the sector into a cycle of temporary fixes rather than addressing the root causes of financial instability for both students and staff.

Inadequate Response to Capital Investment Needs

The €600 million capital uplift, while welcome, is spread thinly across a wide range of sectors, including further education, healthcare and research. While investments in Veterinary, Medicine, Nursing, and other healthcare disciplines are essential, the overall capital funding seems fragmented and insufficient to address broader infrastructural needs across the tertiary sector. This piecemeal approach to capital investment overlooks the reality of outdated facilities, inadequate technology, and insufficient student support spaces.

Missed Opportunities for Sector-Wide Wage and Job Security Improvements

Budget 2025 and Minister O’Donovan’s announcement for the Higher Education sector made no mention of addressing precarious employment for university staff.  The IFUT Report on Precarious Employment in Higher Education of October 2023 exposed the over reliance on precarious working practices across the sector. This budget does not provide any mechanism for precarious employment to be tackled adequately. Early-career academics, researchers, and other grades working across our universities continue to face temporary contracts, unpaid hours, and insufficient career progression opportunities. The focus on apprenticeships and industry skills, while important, does not address the pressing concerns of those already working in the higher education sector.

Inadequate Investment in Research and Innovation

The government’s package includes €150 million for the research sector, but this is far from sufficient given the critical role of research and innovation in driving economic and societal progress. Research staff, who are far too often employed on short-term contracts, continue to face significant funding uncertainties. A long-term, strategic investment in research is needed, not just for the development of key sectors like health and technology but also to retain talented researchers and provide them with job security.

The €9 million allocated in the budget for increasing PhD stipends to €25,000 per annum is welcome but will only fund a €3,000 per annum uplift for less than 30% of the total number of PhD candidates enrolled last year {HEA Statistics}.
 

Limited Measures on Student Housing

The government promises 1,200 additional student accommodation beds, with 30% below market rates. However, this number is a drop in the ocean compared to the actual need for affordable student housing. The lack of significant investment in public student accommodation exacerbates housing pressures on students and staff alike, particularly in cities. This creates additional stress for both students and staff, affecting the student experience, their overall well-being, and performance.

Overemphasis on Industry Needs Without Parallel Investment in Educational Quality

The budget dedicates €73 million to deliver skills for industry, including apprenticeships, and €20 million for employment-focused skills and training. While aligning education with industry needs is important, there should be an equal focus on ensuring that the quality of higher education does not suffer due to an overemphasis on training for specific labour market requirements.

We often highlight the importance of maintaining the integrity of academic disciplines, fostering critical thinking, and ensuring that higher education institutions are not merely vocational training centres for industry. The budget’s focus on skills may divert attention from the broader educational mission of universities.