Ministers seek more help with third-level fees and return of energy credits in budget

Families whose children are attending third level could be in line for a budget boost under a plan to reform the student contribution charge.Under a plan being pushed by Further and Higher Education Minister James Lawless, the current cut-off point for a €500 grant paid towards the €2,500 charge would be increased for families with more than one child in college.Currently, families earning more than €120,000 are not eligible for the grant, but Lawless is said to be pushing for that to be increased as high as €160,000 for those with more than one child in third level.This would mean those with more than one child in third level and a household income of between €120,000 and €160,000 would benefit from the €500 grant – meaning the cost to a household with two children falling from €5,000 to €4,000. READ MOREUnder the proposals, lower-income families already receiving Student Universal Support Ireland (SUSI) support would also see a significant reduction in the cost of sending multiple children to college with enhanced grant supports for second and subsequent students in households earning up to €120,000. At present, families earning between €58,000 and €71,000 per year get 50 per cent of their fees paid, while those with an income of less than €58,000 have fees paid in full by the state. Some Ministers are said to have made budget requests that officials consider to be unrealistic, with three departments said to have sought increases of 15 per cent or more. The Coalition has pledged to keep spending growth to 6 per cent or lower in 2027. While the Taoiseach has said energy credits are not on the table, Micheál Martin is expected to face pushback from within his ministerial ranks amid concernsthe Budget may underwhelm voters facing acute cost-of-living pressures. Discussions between key ministers and Cabinet members began on Friday and, although no decisions have yet been made, it is understood that a return to one-off payments of energy credits – in some form – are now favoured by a number of those at Cabinet. The issue is set to be back the agenda over the coming weeks as budget negotiations intensify.The Taoiseach, meanwhile, has revealedthe Government is considering an expansion of the rent-a-room tax relief in the budget, which he said had been successful in helping deliver more accommodation for students on to the market. The scheme at present allows tax-free income for those renting a room in their home up to a level of €14,000 per year. “The rent a room scheme ... has been very effective,” said Martin, who was speaking in Manchester after meeting British prime minister Andy Burnham.“That’s something that we should definitely consider expanding.”“Along with income tax reductions, which were all agreed on, [and] reducing childcare costs [there may be] a cost-of-disability payment, which will be challenging to bring in.“But I think it would be a real breakthrough if we managed to create and establish a cost-of-disability payment. It has never been done before. And I think all three are designed to help with the cost of living.”Amid continuing pressure on energy markets and with the traditionally colder months approaching, a reduction in tax on home heating oil is accepted by all Government sources as inevitable. Officials have warned the average cost of a tank of home heating oil could, in a worst-case scenario, rise from €900 last year to €1,900. But a movement on home heating oil means that a measure to assist gas customers may also be considered. Although the bonanza in corporation tax has continued, the Department of Finance has warned that private sector growth in employment has fallen. With no talks on a new public-sector pay deal and a growing expectation of industrial action by thousands of State employees from the end of the month, pressure is set to increase on the Coalition as it puts the finishing touches to its second budget.