Martin Daly on disability funding: £85m overspend and 2026 plans
Martin Daly spoke about disability funding, addressing an £85 million overspend in special residential services and outlining commitments for 2026. He described the overspend as significant but necessary and set out figures on residential spending, new places and additional supports.
Martin Daly acknowledged an £85 million overspend on special residential services, noting it is a combination of state-provided and third-party private provision. He said the overspend is significant but necessary to ensure people are appropriately cared for in appropriate settings.
He stated that more than 60% of the entire disability budget is spent on residential care, citing roughly £2.2 billion of the disability fund devoted to residential services. Martin Daly highlighted that the residential sector delivers services for a large number of people and stressed its centrality to current provision.
Martin Daly outlined that 2026 funding will deliver services for 9,000 people and that an additional £65 million is being provided to support new residential places, upgrades to existing services and measures for under-65s in nursing homes. He framed these measures as part of a continued commitment to expand and improve supports.
He acknowledged ongoing concerns about value for money and noted that costs vary with individual complexity, so no one-size-fits-all comparison exists between public and private providers. Martin Daly emphasised the need to ensure adequate funding for both new service development and efficient use of public money.
Martin Daly said the department went through a protracted budgetary process and referenced being put on a steadier footing by "in excess of £5.618.000.000 additional," arguing this helps address next year’s pressures across the disability sector. He reiterated a commitment to funding development of new services and to getting value from public expenditure.
Overspend explained
Martin Daly acknowledged an £85 million overspend on special residential services, noting it is a combination of state-provided and third-party private provision. He said the overspend is significant but necessary to ensure people are appropriately cared for in appropriate settings.
Residential spending scale
He stated that more than 60% of the entire disability budget is spent on residential care, citing roughly £2.2 billion of the disability fund devoted to residential services. Martin Daly highlighted that the residential sector delivers services for a large number of people and stressed its centrality to current provision.
2026 commitments and new places
Martin Daly outlined that 2026 funding will deliver services for 9,000 people and that an additional £65 million is being provided to support new residential places, upgrades to existing services and measures for under-65s in nursing homes. He framed these measures as part of a continued commitment to expand and improve supports.
Value for money and provider mix
He acknowledged ongoing concerns about value for money and noted that costs vary with individual complexity, so no one-size-fits-all comparison exists between public and private providers. Martin Daly emphasised the need to ensure adequate funding for both new service development and efficient use of public money.
Budgetary context
Martin Daly said the department went through a protracted budgetary process and referenced being put on a steadier footing by "in excess of £5.618.000.000 additional," arguing this helps address next year’s pressures across the disability sector. He reiterated a commitment to funding development of new services and to getting value from public expenditure.
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Transcript
Thank you, Minister Foley and Minister Higgins for coming here with your teams from the Department as well today, this evening. And, you know, this is a huge, the whole disability area, and it has been prioritised by government. It's an area where there's huge need and growing need, and I suppose at the end of the day what we need to be sure is that we have adequate funding going forward for development of new services, but also that we get valuable money. I suppose that's on everyone's minds. Looking at the supplementary statements, the £85 million overspend for special residential services, those residential services, are they provided directly by the state? Are they third-party private providers? It's actually a combination, and I do concede, you know, it's a significant overspend, but it's necessary. It is to ensure that people are appropriately cared for in appropriate settings. I can say in terms of, you know, residential as a whole, more than 60% of the entire budget is actually spent on residential. That's, you know, in and around £2.2 billion of the entire disability fund is actually spent on residential. But it does deliver, and for example, for 2026, we can say it will deliver services for 9,000 people. There's an additional £65 million being provided for in 26 as well to deliver supports to ensure that there will be new residential places, that there will be appropriate measures taken for the under-65s who are in nursing homes, I suppose enhancements and upgrades in existing residential services. So we're hugely, hugely committed. And I will say in terms of the overspend that we have this year, given that we went through a very protracted budgetary process, where we have in excess of £5.618.000.000 additional, that puts us on a lot steadier footing for next year, in terms of not just for a residential, but indeed, you know, in the round. But I suppose the value for money, the publicly provided system and the private providers, I mean, is there a like-for-like, or do you find that you have to pay a good deal more for the private providers? Well, look, I suppose it depends also on the complexity of the individual. You know, it's very clear that no one size fits all, and nor would I expect it to. So, in some instances, you could have a situation where 24-hour care is required, less so for another individual, and then less so, again, for another individual. I do want to say, Hugh... Sorry, Minister, to interrupt. There's a vote being called on it all, so we'll have to... Oh, yeah, sorry. Enjoy. Thank you.