Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

193. To ask the Minister for Education and Skills her plans to enhance the ancillary grant for primary schools [27086/24]

Norma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My Department is committed to providing funding to recognised primary and post-primary schools in the free education scheme by way of per capita grants. The two main grants are the Capitation grant to cater for day to day running costs such as heating, lighting, cleaning, insurance and general up-keep, and the Ancillary grant to cater for the cost of employing ancillary services staff. Schools have the 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 cases where a secretary is now paid from my Department’s payroll as per circular 36/2022.

The current standard rate of Capitation grant is €183 per student in primary schools. Primary schools with less than 60 pupils are paid the Capitation and the Ancillary grants on the basis of having 60 pupils.

In addition to these grants, €20 million in funding was issued in October 2023, to support all recognised primary and post-primary schools in the free education scheme. This funding was the first tranche of an overall additional €60 million funding announced as part of Budget 2024 measures designed to assist schools with increased day-to-day running costs such as heating and electricity. A further €40 million in funding was delivered in early 2024.

As part of the capitation package in Budget 2024 I am pleased to have secured €21 million as a permanent increase in capitation funding to assist schools now and longer term with increased day-to-day running costs. This will support a permanent restoration of funding for all primary and post-primary schools from September 2024. This will bring the basic rate of capitation grant to the pre-2011 level of €200 per student in primary schools. Enhanced rates will also be paid in respect of pupils with Special Educational Needs. This represents an increase of circa 9.2% of current standard and enhanced capitation rates.

The ancillary services grant funding is currently under review to identify a method of standardising the grant for the longer term where school secretaries have moved over to a Department operated payroll. It is not possible to provide an estimated costing for an increase in this grant funding at present.

Any possible further increases will be part of Budget 2025 negotiations. 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 and prioritise the additional funding required to meet the ongoing costs of running schools as part of the annual Estimates process.

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

194. To ask the Minister for Education and Skills the rationale for not providing capitation parity for primary schools and her plans to amend that policy. [27087/24]

Norma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My Department is committed to providing funding to recognised primary and post-primary schools in the free education scheme by way of per capita grants. The two main grants are the Capitation grant to cater for day to day running costs such as heating, lighting, cleaning, insurance and general up-keep, and the Ancillary grant to cater for the cost of employing ancillary services staff. Schools have the 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 cases where a secretary is now paid from my Department’s payroll as per circular 36/2022.

Schools also receive a range of other grants including Book Grants and Programme Grants.

The current standard rate of Capitation grant is €183 per student in primary schools and €316 per student in post primary schools.

Primary schools with less than 60 pupils are paid the Capitation and the Ancillary grants on the basis of having 60 pupils.

In addition to these grants, €20 million in funding was issued in October 2023, to support all recognised primary and post-primary schools in the free education scheme. This funding was the first tranche of an overall additional €60 million funding announced as part of Budget 2024 measures designed to assist schools with increased day-to-day running costs such as heating and electricity. A further €40 million in funding was delivered in early 2024.

As part of the capitation package in Budget 2024 I am pleased to have secured €21 million as a permanent increase in capitation funding to assist schools now and longer term with increased day-to-day running costs. This will support a permanent restoration of funding for all primary and post-primary schools from September 2024. This will bring the basic rate of capitation grant to the pre-2011 level of €200 per student in primary schools and €345 per student in post primary schools. Enhanced rates will also be paid in respect of pupils with Special Educational Needs. This represents an increase of circa 9.2% of current standard and enhanced capitation rates.

It is difficult to make precise comparisons between the levels of grants paid and the actual costs of running schools at primary and post-primary level.

In general, post-primary schools are larger than primary schools. They have specialist rooms such as laboratories, workshops etc. This leads to higher unit costs for heat, light, power, maintenance and cleaning.

Any possible further increases will be part of Budget 2025 negotiations. 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 and prioritise the additional funding required to meet the ongoing costs of running schools as part of the annual Estimates process.

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

195. To ask the Minister for Education and Skills her plans to align primary education funding with the OECD average [27088/24]

Norma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

As the Deputy will be aware, my Department’s voted estimate for capital and current expenditure for 2024 stands at over €10.9 billion. This represents an increase of over €2.8 billion or 35% since 2019. This is the third largest budget across Government, and the largest ever investment in our schools. This indicates the strong commitment to investment in education by this Government.

In the lead up to the 2025 Budget, as Minister for Education, I will continue to deliver on the priorities outlined in the Programme for Government and to continue to support the students, staff and families in the education sector. As I am sure the Deputy appreciates, it would not be appropriate for me to outline any more specific plans at this stage of the Budgetary process but over the last four years, I have delivered substantial increases in investment in our Education system, and I remain committed to this vision of a world class education system for all.

The OECD average, as referenced by the Deputy, is taken from the annual ‘OECD Education at a Glance’ report. This report uses GDP as the base against which to compare investment in education across different OECD members. As the Deputy will be aware, senior academics and other independent analysts have raised questions regarding the use of GDP as the most appropriate measure of the size of the Irish economy. To assist with this, my department published a paper on this matter in October 2022 to assist users of these statistics to understand this issue. This paper is available on www.gov.ie under OECD briefing notes.

This paper outlines how the very large increase of 34% in GDP between 2014 and 2015 raised questions about the usefulness of GDP as an accounting standard for Ireland and its distorting effects on measures such as spend per capita on education. In order to help in analysis of the Irish macroeconomy and in the derivation of other such development indicators, a special measure, GNI-Star (GNI*), which excludes these distorting factors by (for example) excluding the net profits of companies that have been sent abroad, rather than staying in the Irish economy. GNI* has been calculated by the Central Statistics Office (2016) and is available as a continuous series (alongside GDP) from 1995. For context, according to the CSO, in 2021 GNI* was about 30 per cent below the level of GDP. An indication of the more appropriate value of GNI* versus GDP is that GNI* is now being used instead of GDP in national policy for example, the National Development Plan, 2021-2030. The Department of Finance uses GNI* in meeting the Government’s European budgetary requirements with debt-to-GNI* figures rather than debt-to-GDP.

The briefing paper referenced above outlines how, using the alternative measure of GNI*, education expenditure in 2020 as a percentage of GNI* stood at 5.8%. This compares favorably to the OECD average for education expenditure as a percentage of national income, which stood at 5.1% in 2020. The document also looks at Ireland’s spend on education as a percentage of total Government spending and this also compares well internationally.