Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for her question. The summer economic statement and the mid-year expenditure report published in July outlined an estimated amount of €2.3 billion in respect of the additional costs arising in 2024 to deliver ELS. This amount equated to approximately 3% of the core current expenditure base. This provision took into account the additional amount required for ELS in previous budgets. In recent years, the overall provision in this regard has been in the region of 3% of the expenditure base. Setting out the estimated overall amount required for ELS in the summer economic statement provides greater transparency in respect of the amount that is available for new policy measures well in advance of discussions on budgetary measures.

The ELS provision is a significant element of the budget package and does not represent new policy decisions. However, it is often used to deliver more supports and more services for our population. It includes adjustments in expenditure as the size and demographic composition of our population changes, it allows for the provision of funding for additional benefits to service users for measures rolled out and decisions taken in previous budgets. It also makes provision for the costs of existing public service pay deals. While the summer economic statement set out an overall provision of 3% of the core current expenditure base in respect of ELS, the actual requirement by Department varies, with discussions in relation to the ELS requirements for the following year being a core component of the Estimates process.

See this speech in context