In April, Government agreed that additional funding of €646 million will be provided to the Department of Education and Youth in 2026. It was further agreed that €446 million of this additional funding will be provided by way of a levy from 2027, calculated on the current expenditure REV 2026 allocations of Votes other than the Department of Education and Youth.
As recently advised by the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation (DPEIPSRD), a levy will apply to current expenditure in the Defence Vote Group in 2027. This measure reflects the need to moderate the rate of expenditure growth across other Departments to facilitate Government’s decision to reprioritise and provide additional investment to the Education sector within the agreed overall fiscal framework.
The overall framework for the levy has been determined on a whole-of-Government basis, with allocations structured to safeguard priority areas of expenditure including pension funding.
My Department is required to prepare and submit efficiency and reform proposals to the DPEIPSRD by 17 July in order to meet its levy target. These proposals will form a key component of the forthcoming Budget 2027 process. In line with the specified timelines, work is ongoing within the Department to assess all available options.
As this deliberative process is currently underway across my Department, it is not possible at this stage to provide a definitive breakdown of the specific areas within the Defence Vote to which the levy will be applied.