Departments face cutbacks to cover Education overspending 

Public expenditure minister Jack Chambers warned of a 'challenge' within the Department of Education’s budget, despite a rise in funding between 2021 and 2025

Public expenditure minister Jack Chambers and Tánaiste and finance minister Simon Harris unveiling the Government's quarterly exchequer returns. Picture: Bairbre Holmes/PA

The Government would be required to reduce funding to other departments to cover the overspending at the Department of Education, according to public expenditure minister Jack Chambers.

Mr Chambers acknowledged on Tuesday that there is a “challenge” within the Department of Education’s budget, despite a significant rise in funding provided between 2021 and 2025.

It was reported last month that there is a projected overspend at the Department of between €600m and €700m.

Changes to the Government’s budgetary practices mean that overspends are no longer covered by supplementary budgets but must instead be absorbed by other departments.

This has essentially removed the process of supplementary budgets entirely.

Ireland's EU presidency 

While there is a €1bn contingency fund in place for 2026, a Government source indicated this is being used for measures including costs associated with Ireland’s EU presidency in the second half of 2026 as well as an extra payday for civil servants due to the way this year’s calendar falls.

“We’ve been clear that if a new priority or a new expenditure pressure arises, that will have implications for other Government departments,” said Mr Chambers.

“That’s what we’re engaging with the Department of Education on presently. That will involve additional controls and efficiencies across Government in 2026 and will also have implications on what’s available in Budget 2027 for all Government departments and ministers.” 

He confirmed this would limit other Government departments in their funding allocations if the Department of Education is given extra funding.

Mr Chambers said the Government is yet to make a decision on whether to provide extra funds to the department.

“I believe when that happens, we’ll set out the implications for other Government departments. Some of that will form the part of Budget 2027 and some will involve efficiencies and additional controls in 2026.” 

Last year, Mr Chambers warned ministers that large overspends would not be allowed to continue and that departments would need to find efficiencies.

The warnings were issued to the Departments of Housing, Education, Health, and Children.

• Tadgh McNally, Political Reporter