Health overspend is putting other budget allocations at risk, Paschal Donohoe warns

Public Expenditure Minister urges caution about Budget 2024, saying that funds available for new measures will be 'tight'

Public Expenditure Minister Paschal Donohoe warned Cabinet that funds will be 'tight' for Budget 2024 measures, while Children's Minister Roderic O'Gorman provided 'a very bleak picture' in relation to shortage of accommodation for Ukrainian and international protection applicants. Picture Gareth Chaney/Collins

A €1bn Department of Health overspend is now putting Budget 2024 allocations for other departments at risk, Public Expenditure Minister Paschal Donohoe has warned.

It comes as Cabinet has been told that the amount of money available to fund new measures as part of next month's budget will be "tight".

Ministers were yesterday told that inflationary pressures mean that a significant amount of funding will have to be provided to Departments just to stand still.

It is understood that ministers also received a "sobering update" on the shortage of accommodation for Ukrainians and international protection applicants arriving here, with Children's Minister Roderic O'Gorman providing a "very bleak picture" in relation to the months ahead.

Mr O'Gorman warned his colleagues that there are currently around 800 contracts in place with hotels and other providers, however, he said the it is becoming more difficult to secure large scale accommodation. He told Cabinet that while the contract sizes are smaller, they are coming in at a higher cost.

Mr O'Gorman also suggested that given the numbers of people still arriving in this country, use of tented accommodation will continue throughout the winter.

Speaking after Cabinet, Mr Donohoe added that the HSE overspend, which is now predicted to reach €1bn by the end of the year, could "jeopardise" funding for next year.

“With regards to health spending, I hugely value and recognise the work that those working in hospitals and primary care centres are doing and I very much appreciate the challenges that the HSE and the Department of Health face in meeting the health needs of our country given how busy our hospitals are.”

He added: “I’m working very hard to make sure that the potential additional spending that is taking place in our health service here in Ireland does not jeopardise the plans that other Government departments have and the overall aims for next year. 

"There is a risk, but I am working very hard to make sure that this risk does not materialise, and I have been very clear within Government and with [Health] Minister [Stephen] Donnelly on our efforts to avoid that risk taking place.”

Mr Donohoe added that the level of one-off measures will be made in "the weekend before the budget and just before it".

He added: "At the moment my focus is more on the day-to-day spending plans that ministers will have in place for all of next year and beyond and the estimates meetings for those are taking place at the moment. In relation to the overall scale of that, myself and [Finance] Minister [Michael] McGrath are engaging with party leaders and we won’t make a final decision until closer to budget day.”