2025-12-11

90. Deputy Darren O'Rourke asked the Minister for Education and Youth the number of schools referred to the financial service support unit in 2023-24, 2024-25 and to date in the 2025-26 school year; the measures she is taking to support schools financially through the winter in the absence of a cost-of-living package this year; and if she will make a statement on the matter. [71049/25]

I wish to ask the Minister of State the number of schools referred to the financial support services unit in the academic year 2023-24, 2024-25 and to date in 2025-26 and the measures he is taking to support schools financially through this winter in the absence of a cost-of-living package.

The Government is committed to increasing funding to support schools and the programme for Government commits to increasing capitation funding to schools of all types to ensure they can meet day-to-day running costs. Schools have autonomy in their spending, allowing them to make decisions on spending independently at school level. The financial support services unit, FSSU, funded by the Department is an important source of advice and support to schools on financial matters, including budgeting and cash flow management. In circumstances where a school is in financial difficulty, the Department requests the FSSU to carry out an evaluation of the financial position in the school. The Department is committed to offering all available and appropriate supports to these schools, which may include an advance in capitation grant funding, or other measures, as may be appropriate. As a result of such evaluations, a small number of schools required an advance in capitation grant funding to be paid to address immediate cash flow issues. The Department continues to liaise with the FSSU regarding supports and guidance to all schools. In the 2023-24 school year, 31 schools were referred to the unit and two received an advance in capitation grant funding. In the 2024-25 school year, 61 schools were referred to the FSSU and 17 received an advance in capitation grant funding. In the 2025-26 school year to date, 18 schools were referred to the FSSU and nine received an advance in capitation grant funding. The Department has secured €39 million in budget 2026 towards increased capitation funding for primary, post-primary and special schools. This will result in the standard rates increasing from €224 to €274 for primary schools and from €386 to €406 for post-primary schools. The increases in the budget are in addition to the 12% increases as part of budget 2025. The last three budgets have resulted in an increase in the level of capitation grant rates of almost 50% paid to primary schools and approximately 28% paid to post-primary schools.

I thank the Minister of State for those figures, but they paint a picture that is a very stark one in terms of the financial challenge schools are going through. Regarding those numbers, we are not at Christmas yet and we have 18 schools referred to the FSSU so far this year and nine that have needed advanced payments. A number of schools, including Darver in neighbouring County Louth, have been high-profile in terms of the financial challenge they are facing. Regarding the Minister of State's figures on the capitation and the funding, schools are worse off in real terms because of the lack of a cost-of-living package this year. There is a net reduction in the funding for them when we take out the cost-of-living package. Will the Minister of State look at introducing a cost-of-living package for schools this year in light of the cost of energy, insurance and heating?

The next capitation grant payments due to primary and post-primary schools will be paid in January 2026. The Department is committing to offering all available and appropriate supports to schools experiencing financial difficulties and advises any such schools to engage early with the Department and FSSU. We increased them, and I think it is important that we put a long-term footing in place in relation to the capitation grants and that there is not just a once-off approach but a sensible way of making sure the capitation grant money meets the demands in schools. I can stress, though, that the Department is working extremely hard to engage with all school communities. Any school community that has difficulties should liaise as early as possible with the FSSU and the Department because we are there to help guide and resolve issues they may have at local level.

Costs are increasing and, in real terms, last year capitation per student in primary schools was €236 and €400 per student in post-primary schools. That is when we take the capitation and the cost-of-living aspects into account. This year, it is €224 per student at primary level versus €236 last year, while at secondary level, it is €386 per student compared with €400 last year. That is a net decrease in real terms at a time when costs are increasing. Is it any wonder increasing numbers of schools are being referred to the FSSU? In addition, €23 million is being raised through voluntary contributions to subsidise so-called free education. That is not evenly distributed, so we know there are many schools that do not have access to that option and are in deep, deep trouble. I do not get a sense that there is a recognition from the Government in this regard. It needs to introduce a cost-of-living package for schools.

The capitation grant increases in several budgets in recent years have been there. This means there is a serious commitment to education right across the system. We have record funding in the Department to meet the needs of student communities and make sure they have the best possible outcomes. Investment in education continues. This is the case whether it is in special or mainstream education, and the Government is very much committed to it. We are not blind to the challenges at school gates or in school communities, and we have engaged very thoroughly with school communities that have faced financial challenges over the last number of years and again this year. The increase in the capitation grant gives a sense of where we are at with it. Huge funding is also being given right across the spectrum. I have to push back on the suggestion that we do not understand what is going on in education. We do understand it and we are investing in education.