Norma Foley (Kerry, Fianna Fail)

I thank the Chair very much. I thank the committee for making time available this evening to consider this Supplementary Estimate for specialist disability services funded through the Department of Children, Disability and Equality. The Department is seeking a Supplementary Estimate across the wider Vote, principally due to cost pressures associated with the demand for services being provided by the HSE disability services and Tusla. These cost pressures require an upward adjustment to the Department’s total Vote allocation for 2025. In summary, cost overruns of €329.6 million are forecast for this year. Savings of €115.9 million are also forecast across various subheads. The overall value of the Supplementary Estimate is, therefore, set at €213.7 million.

I attended the Select Committee on Children and Equality yesterday evening to discuss the elements of the Supplementary Estimate which relate to other parts of the Vote. For this committee meeting, I will focus on HSE disability services. I will now turn to the key components of the forecasted Supplementary Estimate.

It is forecasted that specialist disability services will require €267 million in supplementary funding in 2025. The main components of the overspend include €85 million for specialist residential services; €48 million directly associated with other service areas, including children’s services, respite, day services, home support and personal assistance, PA; agency staff costs require €54 million in supplementary funding; and in the region of €60 million is required to support service provision with additional costs, including inflation, overheads, maintenance, etc.

The largest part of the disability supplementary requirement relates to residential services and is primarily due to demand for residential places outstripping the funding available. The additional funding required will ensure that places for over 600 people who needed a residential service between 2023 and 2025 are fully funded. The requirement is also driven by the cost of agency workers needed when demand for service provision exceeds the available workforce. In addition, challenges around recruitment and retention are resulting in a reliance on agency staff and overtime to maintain service provision. Costs associated with respite, day services, home support, personal assistance hours and children's services are also included. These relate to situations where activity has exceeded funding available or where costs have increased.

The committee will be aware that I secured a very substantial uplift in funding for disability services in budget 2026, with a total of €3.8 billion allocated to the sector next year. The additional funding in 2026 includes a significant existing level of service provision of €468 million to address sectoral funding pressures. Through this Supplementary Estimate, I am providing the additional funding required to meet the costs in 2025. Through budget 2026, I have ensured that those costs are also covered within the allocation for next year. It is intended that this Supplementary Estimate and the funding allocation for 2026 will, when combined, help to stabilise the sector and bring certainty to service providers in relation to their funding. In addition, €150 million was provided in the budget to fund service expansion in residential and respite services, day service provision and increased investment in home support and personal assistance programmes.

It will also support continued strong recruitment of in the region of 1,000 staff in line with trends in 2025.

In recognition of the very significant investment of almost €4 billion being made in the sector in 2026 and the need to manage within the parameters set out in the budget, strengthened oversight and governance arrangements have been agreed with the HSE and will be implemented next year.

While the supplementary funding being sought relates to specialist disability services, I will take a moment to comment on the Department’s wider remit in relation to disability equality matters. Members will be aware that on 3 September this year, the Government launched the national human rights strategy for disabled people. This is a landmark strategy, the first published since Ireland ratified the United Nations Convention on the Rights of Persons with Disabilities. It provides a framework for collaboration across government to deliver on our obligations under that treaty. Crucially, the strategy will be delivered across five pillars. The scope of ambition of the strategy fulfils the Government’s commitment to progressively realising Ireland's implementation of the United Nations Convention on the Rights of Persons with Disabilities in ways that will have the maximum benefit for disabled people. Budget funding is essential in supporting us to achieve our aims.

I recommend this Supplementary Estimate for Children, Disability and Equality - Vote 40. I am happy to address any questions members may have.