A major row has emerged in the Coalition after the Fine Gael leadership was ‘blindsided’ by an announcement from Fianna Fáil that a €1,000 reduction in student fees will be axed.

Parents and students have reacted furiously to the announcement from Further and Higher Education Minister James Lawless that student fees will be restored to €3,000 per year just months before the new term begins.

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Mr Lawless has insisted that cost-of-living measures that reduced student fees by €1,000 for the past three years will not be repeated in this year’s Budget.

Sources close to Tánaiste Simon Harris – who personally promised students during the general election campaign that his party would move to abolish college fees – said he was ‘incredulous’ over Mr Lawless’s comments on Sunday.

They disputed the rationale provided by Fianna Fáil that the absence of a cost-of-living package in Budget 2026 meant that the Government could not further reduce student contribution fees. In turn, Fianna Fáil figures have vented their frustrations over Fine Gael’s response to Mr Lawless’s comments and have called for a more ‘grown-up’ approach during Budget negotiations.

The previous government reduced university fees as part of a suite of once-off cost-of-living measures in the last three Budgets. The reduction was championed as a coup for his party by Fine Gael leader Mr Harris, who served as Higher Education Minister from 2020 to 2024.

Fine Gael pledged to abolish the €3,000 charge completely over the course of the general election campaign. ‘I think we need to really phase out third-level fees. I’ve strong views on that,’ Mr Harris said at the time. In the Programme for Government, Fine Gael secured a commitment to ‘continue to reduce the student contribution fee over the lifetime of the Government… in a financially sustainable manner’.

But a rift between Fianna Fáil and Fine Gael emerged after Mr Harris outlined a number of Budget priorities, including measures to reduce the cost of education, at a private Fine Gael meeting last week. While the Tánaiste told party colleagues that no decision on fees has been made, he said that if a further reduction is rolled out, it would apply to the second instalment of fees, which would be due early in the new year.

The comments came despite Mr Lawless previously stating that universal fee cuts would take hundreds of millions from universities and colleges. On Sunday, the Higher Education Minister doubled down on this stance and confirmed that college fees will be reset to €3,000 ‘as things stand’.

Mr Lawless said last year’s €1,000 reduction in fees was part of a cost-of-living package which included other supports such as energy. However, money ministers Paschal Donohoe and Jack Chambers have repeatedly stated the need for ‘fiscal prudence’ and have ruled out a cost-of-living package for this year. ‘If I don’t have a cost-of-living package, I can’t do those kinds of measures that were done last year,’ Mr Lawless told RTÉ’s This Week.

The Fianna Fáil minister also said that he does ‘intend to wind down the student contribution fee over the lifetime of the Government’.

Mr Lawless said yesterday that he will endeavour to secure the ‘best possible deal’ for students but that he has ‘to play the hands I am dealt with’.

The Higher Education Minister cast doubt on his ability to achieve a further reduction in college fees, which come at a cost of almost €100million to the Exchequer, without additional cost-of-living funding. ‘[We are back to a €3,000] starting point. I’ve got to go in and negotiate’ and see what I can get in return, or what I can get instead,’ he said.

Mr Lawless indicated a preference towards increasing targeted student grants over fee reductions. ‘I want that to go higher, and I want to give more grants to more people,’ he said.

But his comments have been sharply criticised by Fine Gael.

Dublin Rathdown TD and university lecturer Maeve O’Connell said that Fine Gael and Mr Harris remain committed to reducing the cost of third-level education.

‘Now is not the time to row back on commitments made by the party during the last election and by this Government,’ said Ms O’Connell, who lectured in Technological University Dublin until her election.

She said that it was ‘reasonable’ for households to expect a further deduction in university charges and called for clarity from the Higher Education Minister.

Speaking to his parliamentary party last night, Mr Harris said that the Budget ‘does need to help families with the cost of putting a young person through college’. He added: ‘It’s true to say that there won’t be a cost-of-living package in advance of Christmas, but we all know that’s not how students pay college fees anyway. They can pay them in instalments. So the regular Budget is still something that can consider how we can help students and their families in the here and now. So I just want you to know we’re going to keep working on this.’

Behind the scenes, a source close to the Tánaiste said he was ‘incredulous’ over Mr Lawless’s intervention and ‘surprised at the lack of understanding that you can do measures in the Budget which will still help students in January’. Fine Gael sources echoed this sentiment, saying that they were ‘blindsided’ by Mr Lawless’s comments. ‘We agreed as a Government to reduce student fees,’ they said, adding that the Tánaiste was under the impression that steps to fulfil that commitment would be taken in October’s package. ‘We said we were going to do this – we have to start at some point,’ they added.

They indicated that Fine Gael would oppose any efforts to reset the fee for the upcoming academic year. The source also said that the absence of a cost-of-living package is not a credible reason to reinstate the contribution fees to €3,000. ‘As a Government we made certain commitments. We have to honour them and priat some point,’ they added.

Senior figures in Fianna Fáil defended Mr Lawless’s performance in recent days, noting that the Government has been repeatedly urged to keep spending down. However, they admitted that achieving further cuts in university fees would be possible if the measure was brought into the ‘core’ spending package, which includes repeated, long-term expenditure.

One Fianna Fáil source accused the Tánaiste of kite-flying in an area which is no longer his remit and called for a more ‘grown-up’ approach when it comes to budget negotiations.

Aontas na Mac Léinn in Éireann (AMLÉ), the national body for student unions, described any potential resetting of fees as a ‘calculated betrayal’.

AMLÉ president Bryan O’Mahony said:’This isn’t just about fees. It’s about how consistently students are deprioritised in this country. We deserve more than broken promises and last-minute betrayals.’