Minister Donohoe gets Government approval for Supplementary Estimates to help with the cost of living
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Ó: An Roinn Caiteachais Phoiblí, Seachadta ar an bPlean Forbartha Náisiúnta, agus Athchóirithe
- Foilsithe: 15 Deireadh Fómhair 2024
- An t-eolas is déanaí: 15 Deireadh Fómhair 2024
The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, has today (Tuesday) received Government approval for proposed supplementary estimates to the value of €7.1 billion in gross expenditure and €6.3 billion in net expenditure for a range of Government Departments and Agencies.
Twelve Supplementary Estimates were approved by Government today, impacting eight Ministerial Vote Groups. These Supplementary Estimates will provide additional funding this year for a number of different developments, including:
• The Cost of Living package introduced as part of Budget 2025;
• A Christmas Bonus payment for certain Social Protection recipients;
• The balance of 2024 costs of the Public Service Pay Agreement over the technical allocation made to Votes in the Revised Estimates Volume 2024;
• Allocation of the 2024 element of the windfall capital as decided earlier this year;
• The funding agreement for Health outlined in the Summer Economic Statement; and
• Certain spending pressures that are not expected to fully resolve by year end.
Budget 2025 included a more than €2 billion package of measures to be delivered in 2024 to continue the support provided in recent years for households, individuals and businesses that have been impacted by the increase in prices from recent high levels of inflation.
This includes payment of two energy credits of €125 each (inclusive of VAT), with one payment before Christmas and the final payment in the new year, which will benefit almost 2.3 million domestic electricity accounts. Today’s Supplementary Estimate for the Department of Environment, Climate and Communications is primarily to provide funding for this measure.
Additional support will be provided through a range of measures through Social Protection, including the October Cost of Living bonus and lump sum payments. Provision for payment of a Christmas Bonus to over 1.3 million long term welfare recipients including pensioners, carers, and people with disabilities is also included in the Social Protection Supplementary Estimate. Supports are also being provided through the Department of Education and for businesses through the Department of Enterprise, Trade and Employment.
A two-year agreement of funding for our Health service was announced in the Summer Economic Statement (SES), which included two elements: (i) permanent increase in funding of €1.5 billion in 2024 and (ii) €1.18 billion in 2025 to maintain existing levels of service in the health sector. This substantial investment in health services provides a stable funding base for this critical sector, facilitating expansion of capacity and the workforce. However, it also demands an enhanced focus on productivity, better financial governance and effective expenditure controls within the health service. The current Supplementary Estimate of €1.75 billion reflects the additional cash requirement for the Health Vote in 2024 with the permanent expenditure adjustment for 2024 consistent with the €1.5 billion figure announced as part of SES.
Providing the necessary infrastructure and growth in services to ensure that they deliver for the people of Ireland is an absolute priority for this Government. Today’s Supplementary Estimates for Housing, Local Government and Heritage and Education reflect the provision of additional capital funding of €1½ billion between the two Departments. This additional funding will support a suite of critical social and affordable housing delivery programmes and the continued progression of our schools building programme.
Additional funding is also being provided for the Department of Children, Equality, Disability, Integration and Youth for a number of areas under its remit, including the International Protection Accommodation Service, Specialist Disability Services and certain Childcare areas and for Votes under the Department of Justice for items such as Garda overtime hours for frontline policing and cost pressures in the prisons sector.
Further Supplementary Estimates will be brought to Government in the coming weeks to provide additional 2024 funding, where needed, for other Votes. These will be of a smaller scale than this initial batch which covers the larger Vote Group and policy decisions.
Minister Donohoe said:
"Today I secured the agreement of Government to allocate an additional €7.1 billion gross and €6.3 billion net expenditure across a number of Departments and Agencies through Supplementary Estimates.
“These demonstrate the continuation of the responsive action taken by Government to provide support toward higher price levels, with additional funding being provided to implement the Budget 2025 Cost of Living package measures. Payment of energy credits, additional Social Protection week payments and lump sums, and the two Child Benefit double payments will be reaching people in the coming weeks and months.
“Further funding is being provided to invest in our health services, broadly in line with the parameters set out in the Summer Economic Statement, which provides a stable funding base for this critical sector facilitating expansion of capacity and the workforce. This will support health staff in delivering essential services to support quality of care in an environment impacted by cost pressures due to the pandemic period and the recent inflationary environment; and increased demand and activity, particularly in the Acute Hospital Sector.
“The additional demands facing our public services and infrastructure in other sectors is also recognised through today’s Supplementary Estimates. Capital funding for Housing and Education will allow delivery to continue in these areas, as will current funding increases for areas such as An Garda Síochána and under Children, Equality, Disability, Integration and Youth.”
Notes:
Supplementary Estimates agreed by Government today provide additional funding of €7.1 billion in gross terms and €6.3 billion in net terms for twelve votes:
• Vote 20 - Garda Síochána
• Vote 21 – Prisons
• Vote 22 - Courts Service
• Vote 24 – Justice
• Vote 25 - Irish Human Rights and Equality Commission
• Vote 26 – Education
• Vote 29 - Environment, Climate and Communications
• Vote 32 - Enterprise, Trade and Employment
• Vote 34 - Housing, Local Government and Heritage
• Vote 37 - Social Protection
• Vote 38 - Health
• Vote 40 - Children, Equality, Disability, Integration and Youth
They are for the Departments of:
• Health - the supplementary estimate is €1.754 billion in both gross and net terms.
• Social Protection – the supplementary Estimate is €875 million in net terms and €1.54 billion in gross terms when additional spending on the Social Insurance Fund is included.
• Housing, Local Government and Heritage – the supplementary Estimate is €1.3bn.
• Education – the supplementary Estimate is €1.1bn.
• Children, Equality, Disability, Integration and Youth – the supplementary Estimate is €600m.
• Department of the Environment, Climate and Communications – the supplementary Estimate is €553m.
• Justice – the supplementary Estimate is €176 million.
• Enterprise – the supplementary Estimate is €167m.
ENDS