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 day-to-day running costs. Schools have autonomy in their spending, allowing them to make decisions on spending independently at school level.
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. In circumstances where a school is in financial difficulty the Department requests the FSSU to carry out an evaluation of the financial position the school. The Department is committed to offering all available and appropriate supports to these schools, which may include an advance in capitation grant funding, or other measures, as appropriate.
As a result of such evaluations, a small number of schools required an advance in capitation grant funding to be paid to address immediate cashflow issues. The Department continues to liaise with the FSSU regarding supports and guidance to all schools.
In the 2023/2024 school year 31 schools were referred to the FSSU and 2 received an advance in capitation grant funding.
In the 2024/2025 school year 61 schools were referred to the FSSU and 17 received an advance in capitation grant funding.
In the 2025/2026 school year to date, 18 schools were referred to the FSSU and 9 received an advance in capitation grant funding.
The Department has secured €39 million in Budget 2026 towards increased capitation funding for primary, post-primary and special schools. 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 next capitation payments due to primary and post-primary schools will be paid in January 2026.
The Department is committed to offering all available and appropriate supports to schools experiencing financial difficulties, and advises any such schools to engage early with the Department and FSSU.