Students, Apprentices and Colleges Should Not Take the Hit for Government Overspends

Students, Apprentices and Colleges Should Not Take the Hit for Government Overspends - The Labour Party

Labour TD and education spokesperson Eoghan Kenny and Labour Senator and spokesperson on further and higher education Laura Harmon said Parliamentary Question replies received from the Department of Public Expenditure and Reform confirm that the levy being applied across Government departments to cover overspends within the Department of Education is not being applied uniformly.

Certain departments, including Social Protection, Education, Justice, Disability and Health, have been granted exemptions in relation to staffing, pension costs and core payments.

Yet despite the Department of Further and Higher Education employing more than 20,000 public servants, these costs are not exempt from the levy.

Deputy Kenny said:

“Why is one department being treated differently to another?

“This sends a deeply worrying message from Government: that they do not take the Department of Further and Higher Education seriously, that they do not take the pressures facing students, apprentices, staff and institutions seriously, and that they are prepared to allow this sector to shoulder a disproportionate burden in covering overspends elsewhere.

“Students, apprentices and colleges should not take the hit for failures in Government budgeting.
At a time when students are struggling with accommodation costs, apprentices are crying out for greater support, and further and higher education institutions are under enormous financial pressure, the Government should be strengthening this department, not throwing it to the wolves.

“There is a clear commitment from Government to reduce the student contribution fee year on year, as well as to expand and develop student accommodation. These commitments are essential and they must be properly funded.”

Senator Harmon said:

“If the entire Department of Further and Higher Education is now expected to absorb this levy, how does Government expect these promises to be delivered? Once again, this demonstrates a lack of seriousness from Government. They are prepared to leave these very real financial burdens at the feet of students and working families.

“The Programme for Government contains clear commitments on education, skills and apprenticeships. No department should now be forced to row back on promises or delay vital investment because of an unevenly applied levy.

“The solution is straightforward: exemptions relating to staffing and pension costs must be applied uniformly across all Government departments. Fairness must apply equally across Government, and the Department of Further and Higher Education should not be singled out to carry an unfair share of the burden.”

ENDS

For Written Answer on : 12/05/2026
Question Number(s): 496,497,498 Question Reference(s): 35086/26, 35104/26, 35122/26
Department: Public Expenditure, Infrastructure, Public Service Reform and Digitalisation
Asked by: Eoghan Kenny T.D.
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QUESTION

* To ask the Minister for Public Expenditure; Infrastructure; Public Service Reform and Digitalisation the basis on which the current levy arising from public expenditure overruns is being calculated and applied to his Department’s Vote; whether any categories of expenditure, including pay, pensions or staffing-related costs, are exempt from the levy within his Department; and if he will provide a breakdown of the areas against which the levy is being applied.- Eoghan Kenny T.D.
For WRITTEN answer on Tuesday, 12 May, 2026.

* To ask the Minister for Public Expenditure; Infrastructure; Public Service Reform and Digitalisation whether the levy imposed on departmental expenditure arising from overruns is being applied uniformly across all Government Departments; whether any Departments have been permitted exemptions in respect of salaries, pensions or core staffing expenditure; and if he will make a statement on the matter.- Eoghan Kenny T.D.
For WRITTEN answer on Tuesday, 12 May, 2026.

* To ask the Minister for Public Expenditure; Infrastructure; Public Service Reform and Digitalisation whether his Department has been instructed that expenditure on salaries and pensions must form part of the departmental levy or savings measures arising from expenditure overruns; whether this requirement applies equally across all Departments and Offices; and if details will be provided of any Departments or Votes that have received exemptions or alternative arrangement – Eoghan Kenny.- Eoghan Kenny T.D.
For WRITTEN answer on Tuesday, 12 May, 2026.

REPLY

The Government agreed a Medium Term Fiscal Structural Plan in December last year. This set out expenditure ceilings for the period to 2030. It provides for significant uplifts in expenditure over the coming years, with gross voted spending to reach €147.3 billion in 2030. Delivery of the Medium Term Fiscal Structural Plan over the medium-term horizon will require enhanced expenditure control, avoidance of in-year decisions with carryover costs for subsequent years and robust oversight mechanisms.

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.

The levy supports adherence to the fixed expenditure ceilings set out in the Government’s Medium-Term Fiscal and Structural Plan. It 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 distribution of the levy across Departments has been designed to protect certain areas including:

• Social Protection Vote Group non-pay allocation;

• Department of Health pay allocation;

• Specialist Disability Services subhead in the Department of Children, Disability and Equality;

• Justice, Home Affairs and Migration Group pay;

• Housing, Local Government and Heritage Group non-pay and

• Pension funding across Votes.

It is a matter for each Department to determine how the levy will be applied across the Vote Group and identify the efficiencies and reforms required to ensure this. My own Department will also be undertaking this process in accordance with the requirements. The levy has an impact of between 0.02 per cent and 1.4 per cent on current expenditure funding across relevant Votes.  My Department wrote to Secretaries General of the relevant Departments following the Government decision, informing them of the need to identify efficiencies and reforms and that this would form a key element of the Estimates engagement for Budget 2027.