Michael Murphy (Tipperary South, Fine Gael)
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286. To ask the Minister for Education and Skills if she has assessed the role of rural schools as key community hubs; the risks posed by funding pressures; and whether her Department can support initiatives to sustain rural schools; and if she will make a statement on the matter. [67147/25]

Hildegarde Naughton (Galway West, Fine Gael)
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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 that schools can meet the elevated day-to-day running costs.

The commitment in the Programme for Government builds on the progress which has been made in recent years. My Department has secured €39 million in Budget 2026 towards increased capitation funding for primary, post-primary and special schools to provide additional financial support towards their running costs. This will see an increase in the standard capitation rates paid to schools of €50 per pupil for primary schools from €224 to €274 and of €20 per student for post-primary schools from €386 to €406. This will also allow for an increase of €20 in capitation rates for Urban Band One DEIS primary schools, increasing the mainstream pupil rate in these schools to €294. The increased capitation rates will also see special schools now receive the same rates of mainstream capitation, for young people aged 12 and over, as for their peers in mainstream post-primary schools. This funding will benefit schools around the country in managing their day-to-day running costs.

The increases announced in Budget 2026 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 49.7% (€91) paid to primary schools and 28.5% (€90) paid to post-primary schools. The effective date for these increases will be September 2026.

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. 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 the employment of relevant secretaries as per Circular 0036/2022.

The current standard rate of capitation grant is €224 per pupil in primary schools and €386 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. Enhanced rates are also paid in respect of pupils with special educational needs and Traveller pupils.

Schools should also ensure that they are availing of the available OGP procurement frameworks and getting best value for money for all school expenditure, in accordance with . Schools Procurement Unit (SPU), funded by the Department, is an important source of advice and support to schools on procurement matters – .

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 cashflow management - .

Schools in financial difficulty are encouraged to contact my Department for advice and support. The Department is committed to offering all available and appropriate supports to schools, which may include an advance in capitation grant funding or other measures.