The Department of Children, Disability and Equality provides funding to the HSE to deliver specialist disability services either directly or via Section 38 and Section 39 organisations. The Government acknowledges this essential role voluntary organisations have in delivering a range of disability services across the country.
In 2026, the Department is providing €3.9 billion for HSE specialist disability services, an increase of €628m, or almost 20% over 2025. This is the largest ever increase in funding for disability services. It follows significant year on year increases resulting in an overall increase of €1.85bn or 91%, since 2020.
While this Department sets the strategy, policy direction and the overall allocation for the disability sector, decisions on commissioning of services from individual service providers and funding allocations to individual service providers are an operational matter for the HSE as the funding authority.
The HSE works in partnership with organisations including Section 38, Section 39, Out of State and private organisations to ensure the best level of service possible is provided to people with a disability and their families, within the available resources. The majority of specialised disability provision (80%) is delivered through non-statutory sector service providers funded by the HSE using allocated budget funding.
Furthermore, the Department welcomes engagement from all stakeholders in relation to specialist disability services. A critical part of this engagement is through the annual Estimates process which provides an important opportunity for organisations to outline their proposals through their pre-budget submissions.
The HSE has committed to making savings through reducing the total pay and staffing costs by reducing the amount of agency staff hours that are used. The HSE as the governing body is responsible for oversight of agency spend and ensuring that it is kept within set limits.
Budget 2026 provided €1,623.9 million in Pay funding and this will allow for the recruitment of 976 WTEs. Following the publication of the National Service Plan, the Disability Pay and Number Strategy was agreed, under which HSE has been authorised to undergo an agency conversion programme in 2026 of 74 agency WTE into HSE/Section39 staff. Overall, this will increase the number of HSE and Section 38 staff by 1,050 WTEs.
Agency staff incur a premium and so there would be a saving on each WTE who is converted. Due to the nature of disability work and the requirements of HIQA standards, agency workers make up an important part of the workforce.
The WRC pay agreement reached in 2025 between Government Departments and unions includes funding for a phased 9.25% pay increase, which will benefit workers in section 39 funded voluntary organisations. Taken with the October 2023 Agreement of an 8% increase, this amounts to a 17.25% pay funding increase over a 3½ year period.
In delivering on this 9.25% pay increase, the Government is improving the ability of service providers to actively recruit and retain staff and supporting the overall sustainability of the sector.
As part of the 2025 WRC pay agreement, a comprehensive data gathering exercise is underway, which is due to be concluded before end Q2 2026. The completion of this exercise will provide a more robust evidence base to continue discussion on pay funding in the voluntary sector.
Upon receipt of this PQ the Department contacted the HSE for an update, upon which they provided the below information.
The annual Service Level Arrangement (SLA) process provides a structured mechanism for agreeing funding allocations in return for clearly defined services, outputs, and performance expectations. Each year, the HSE and the service provider jointly review priorities, operational requirements, and available resources to ensure that funding is aligned with an agreed set of deliverables.
The annual SLA process sets out the scope of services to be delivered, expected performance standards and reporting arrangements that will track progress throughout the year. It also establishes a shared understanding of risks, dependencies, and any conditions attached to the funding.
By formalising these commitments annually, the SLA process supports consistent service quality, enables proactive performance management, and ensures that funding is used for its intended and agreed purpose.
Funding provided in the 2024 and 2025 SLAs include school leavers, decongregation, home share, residential placements, individualised funding for clients, home support, funding for specific posts, funding for premises, transport, capitation grants, pension funding, student nurse subsistence allowance, PCP funds and PRSI increases.
In addition to the annual SLA process, disability service providers may submit business cases to the HSE where specific operational pressures or service requirements arise during the year. These requests are reviewed on a case-by-case basis and assessed within the broader context of each organisation’s overall needs, available resources, and national service priorities. Business cases allow the HSE to consider targeted funding requirements in a structured manner while ensuring that any additional allocations remain consistent with agreed service levels and the wider funding framework for the sector.
Due to recent staff changes and organisational restructuring within the HSE, HSE Southwest Disability Services is currently undertaking a comprehensive review of all Business Cases submitted for 2025 and 2026. This work includes collating, validating, and assessing the status of each submission. As part of this process, Business Cases submitted by Horizons are being examined, and HSE Southwest Disability Services staff are engaging directly with Horizons and other service providers to ensure the review is complete and accurate.
HSE Southwest is aware of the challenges faced by disability service providers in relation to recruitment and retention of permanent staff. The SLA process is designed to ensure that funding is aligned with agreed service requirements, and the HSE engages with providers each year to assess operational pressures, including staffing costs. HSE Southwest will continue to engage with providers to ensure that funding requirements are considered through the annual SLA and Estimates processes.
