Is it worth applying with lower grades then required and extenuating circumstances

Hi,
I am planning to apply for the MPhil in Modern Chinese Studies this year. I've noticed that the entry requirements for this year have increased from a strong 2.1 to a first.
I graduated last year with a 2.1 (68%) from Trinity College Dublin. The thing is that the application fee is a lot of money and I'd like to know if anyone has any experience in getting in with a grade slightly under the requirement.
For some additional context, I come from a low-income background and worked as a manager of a business alongside my studies to finance myself. I also have some extenuating circumstances, mental and physical health-related.
Academically I've written a dissertation on a topic covered in the course which received a first (72%) and one of my references would come from a professor who used to teach in the faculty and in this course specifically. I've also won a fully paid scholarship to study Chinese in Taiwan for a year, which I am currently doing.
You can kind of see why I am debating applying, I'm not sure my application is strong enough to compete with a lower grade than is required and the fee is not something I can afford at the moment either. So if anyone has any advice or anecdotes I would really appreciate it.

The grade increase is not necessarily an absolute bar to making a successful application - have the grades changed across the whole language faculty for example-indicating a central policy, or just this course?
But you have to re-appraise your strengths and weaknesses and play the right cards.
Low income background - I'm afraid that has zero merit now you are 3 to 4 years an adult and pursuing an entirely optional degree/career. Harsh perhaps, but true.
Worked during your undergrad-so did almost everyone, so the working per se isn't a big deal. But perhaps you can leverage your business skills/responsibility in terms of research, future career etc, it sounds more useful than bar work or waiting tables.
ECs- should have been compensated for at UG level and thus already included in your grades. Could be read as weakening your grades, frame it carefully.
Dissertation - great - big it up.
Reference - great, make sure they know all the details and can frame a strong reference, feed them the key points.
Scholarship - really a standout feature, work it to the max. Shows competitive approach, ability to win funding, masses of useful experience, commitment etc. Make a massive deal of it in your application.
I wouldn't worry too much about 68 v 70. You could be unlucky and they really mean it, but if you play to your strengths, you'd be worth careful consideration.

Thank you so much for the reply, it’s really provided me with some confidence to make an application.
To clear some things up as well. It’s only this specific course for which the bar of entry has risen.
As well as regarding my EC, my transcript does not explicitly state any of their involvement regarding grades.
Though I am hoping to use them explain some lower grades and a resit. Though the majority of my grades are either around 68 or a low first, with some being as high as 76.
I also forgot to add that add that two professors who I have contacted in other universities have urged me to apply to this course instead of theirs after reviewing my CV. They have also worked in the faculty at Oxford. Would this be a strong indication of a competitive applicant?
I really appreciate your thoughts on the matter thus far, so I would be happy to hear some more insight!