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 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 Department used aggregate data from school accounts over recent years, to review key costs and expenditure which has helped in informing my Department’s request for increased capitation funding for schools as part of Budget 2026.
OGP frameworks are available to schools for a number of categories including facilities management, managed services, professional services, and utilities. Schools should ensure that they are availing of these available OGP procurement frameworks in order to get the best value for money for all school expenditure. The benefits arising from these frameworks include cash savings, administrative savings from reduced duplication of tendering, greater purchasing expertise, improved consistency, enhanced service levels and legal certainty. Schools Procurement Unit (SPU), funded by the Department, is an important source of advice and support to schools on procurement matters- www.spu.ie.
Schools experiencing financial difficulty are encouraged to contact the 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. Schools that have contacted the Department have been referred to the FSSU.
The Financial Support Services Unit (FSSU), funded by my Department, is an important source of advice and support to schools on financial matters.