Paul McAuliffe (Dublin North-West, Fianna Fail)
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I raise a significant issue, which is the funding of DEIS band 1 schools. Over the past number of years, we have seen significant funding go into education. Obviously, the free schoolbooks scheme and the free school meals scheme have been important for parents and education. In some cases, they have been a significant anti-poverty measure. I remember the first year the free school books scheme was brought in, the Society of St. Vincent De Paul said it noticed a 20% reduction in calls for back to school supports.

The operating costs of the school remain the same, though. That is the issue I want to raise. I have been contacted by three different DEIS band 1 schools in our area. They are having difficulty balancing the books in terms of operating costs. It has always been the responsibility of the schools and patrons to manage their own finances and I do not take from that responsibility, but I have had a hands-on opportunity to look at the balance sheet of one of the local schools. In one school, there was €17,000 left in the account for between now and the end of the year. An insurance payment of more than €10,000 was required. There was a payment for gas and electricity and then there was a payment for cleaning staff. There was not enough to pay all of those outstanding bills. The schools in question have been dealing with the FSSU, which is the financial support unit in the Department. In fact, they have been doing it for more than a year.

While all schools would welcome increased capitation, there is an issue in schools that may previously have accommodated large numbers. In places like Tallaght, Finglas and many others, schools were often built for 700, 800, 900 or even 1,000 pupils. Unfortunately, in some cases they are operating at 15% or 20% of that capacity, so there are large campuses, but the capitation is now at a much reduced rate. The Department needs a bespoke tool for those schools. While capitation is an important mode of funding and ensures it follows the pupil, schools still have to fund the overall cost of their campuses. If that is not enough, then there needs to be a bespoke solution or we need to look at the long-term viability of the building. Maybe a new building over time on those campuses would be more desirable.

I urge the Minister of State to revert to the Minister of Education. I raised this yesterday with the Taoiseach under questions on promised legislation. The benefit of Topical Issues is that we can have more of a discussion about it. The Taoiseach recommended that there be a bespoke solution, and that is where the solution should lie. Principals have enough to do without worrying about cash flow. Some schools might have a little more cash flow because of a sale of land or whatever. Some schools will have more cash flow because they are in a more affluent area and are able to do fundraising. DEIS band 1 schools have a lot of challenges on their books. Some of this may be about shared support for schools, like a group communal insurance policy or a better insurance deal. Some of them are coming off three-year energy and gas deals and that is now having an impact because costs are increasing. In many cases, they have already gone for local solutions for cleaning contracts rather than using contract suppliers and so on. It is an issue that affects all schools across north Dublin and many schools on the southside. In big schools with smaller numbers, capitation is not working. We need to come with a bespoke solution.

Colm Brophy (Dublin South West, Fine Gael)
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I thank the Deputy for giving me the opportunity to outline to the House the position relating to financial funding for schools.

The Department is committed to offering all available and appropriate supports to the schools that have contacted the Department or have been referred to the FSSU. The Department is committed to providing funding to recognised primary and post-primary schools in the free education scheme by way of per capita grants, as the Deputy mentioned. The two main grants are the capitation grant to cater for day-to-day running costs such as heating, lighting, cleaning, insurance and general upkeep, and the ancillary grant to cater for the cost of employing ancillary services staff. Schools have a flexibility to use capitation funding, provided for general running costs, and ancillary funding, provided for caretaking and secretarial services, as a common grant from which the board of management can allocate according to its own priorities, except for the employment of relevant secretaries, as per the circular of 2022.

The current standard rate of capitation grant is €200 per pupil in primary schools and €345 per student in post-primary schools. Primary schools with fewer than 60 pupils are paid the capitation and the ancillary grants on the basis of having 60 pupils. As part of the capitation package in budget 2025, the Department is pleased to have secured more than €30 million as a permanent increase in capitation funding to assist schools now and in the longer term with increased day-to-day running costs. This represents an increase of 12% on current standard rates and enhanced rates. This increase is on top of a 9.2% increase from last year’s budget. This will bring the standard rate of capitation grant to €224 per pupil in primary and €386 per student in post-primary from September 2025.

Enhanced rates will also be paid in respect of pupils with special educational needs and Traveller pupils. Schools should also ensure they are availing of the available Office of Government Procurement frameworks and getting best value for money for all school expenditure. I acknowledge the Deputy mentioned that is being done by a number of schools.

In addition to these grants, €45 million in cost-of-living supports was issued in November 2024 to support all recognised primary and post-primary schools in the free education system. This additional funding announced in budget 2025 is designed to assist schools with increased day-to-day running costs such as heating and electricity. This funding was paid at a rate of €36 per pupil in primary schools. Enhanced rates were also paid in respect of pupils with special educational needs and Traveller pupils.

The Department of Education is aware that costs and funding can pose a very real problem for schools and is constantly working to address this matter and to enhance the financial and other supports available to schools. While not wishing to pre-empt the outcomes of any future budget negotiations or fiscal parameters agreed by Government, the Department of Education will continue to seek to prioritise the funding required to meet the ongoing costs of running schools.

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.

Paul McAuliffe (Dublin North-West, Fianna Fail)
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I agree with the Minister of State that the FSSU is an important source of advice. It is the reason two of the schools took part in an analysis of cash flow last summer and again in October. Some recommendations and changes were made. The schools are anxious not to cause concern among parents and the community and wish to engage with the system. The Minister of State will note that I have not named the schools for that reason. There is, however, something else going on. While the capitation grant has increased to €224, if the number of pupils in the school over a short period of time is down 20%, 30% or more, then any sort of cost-of-living or inflationary increase is never going to keep up with that. Equally, if the school is designed for numbers that are four or five times the size of the current school population, the current capitation grant will never deal with that.

I know the FSSU was involved in drafting the reply for today’s Topical Issue. I hope officials will take back the suggestion I have made, namely, that a bespoke solution is needed for these large campuses that have significantly reduced numbers. It is not one school or one location, rather something that is common throughout those housing areas that were built 50, 60 or 70 years ago that have these large campuses. Demographic changes have meant that school numbers have changed. While that is not the responsibility of the schools, they are doing their best to try to live up to the issues. We know that in the programme for Government, the Minister has identified DEIS plus, which is really exciting and would be a real support. While there are all these other supports I have mentioned, such as free school meals, free school books and DEIS plus when it is implemented, when it comes to the day-to-day bread and butter, you cannot butter parsnips if you do not have butter. In this case, we need funding for these schools.

Colm Brophy (Dublin South West, Fine Gael)
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I fully hear what the Deputy is saying. He is making an important point on that funding issue. I am more than happy to take that back to the Minister. The Deputy mentioned our constituency, which has a similar situation with regard to school funding. It is important. Obviously, the FSSU plays an important role. It is an issue I will highlight to the Minister and I have no doubt the Deputy will continue to do so as well.