The HSE will receive an additional capital injection of €1.5 billion this year, the government announced today.

In their summer economic statement, the ministers said the additional resources are intended to address the additional demand and complexity in healthcare, particularly in the acute sector.

The funding is part of a total €8.3 billion package that the government will make available when the 2025 budget is announced on October 1.

“A key element of the 2025 spending figure is agreement on the level of health care funding for 2025,” said NDP Delivery and Reform Minister Paschal Donohoe.

“Taking into account the demand for better quality of health care, the complexity of delivering health services, the aftermath of a pandemic and increased inflation, significant additional funding is being provided to the Ministry of Health.

“After significant engagement, I and my officials have reached an agreement with the Department of Health and the HSE that will provide an additional €1.5 billion for the health sector in 2024. In addition, I have agreed that a further €1.2 billion will be allocated in 2025 for the current level of service charges,” he added.

“As part of this arrangement, the three parties have agreed that this additional funding provides an opportunity to strengthen financial planning and governance within the HSE – recognising the importance of demonstrating a clear link between the significant level of public funding made available and how this translates into the delivery of improved healthcare outcomes and better health outcomes.”

In the 2024 budget, the government announced that €22.5 billion would be spent on health care and promised to address perceived overspending in the sector in recent years.

However, the announcement was criticised by medical unions who argued it did not go far enough to address capacity shortages in the system, including a lack of resources and a long waiting list.

In the weeks following the budget announcement, HSE CEO Bernard Gloster said the 2024 service plan would contain a “built-in deficit” because maintaining current funding levels “would certainly be damaging”.

He went on to estimate that between €2.4 and €2.7 billion in additional funding would be needed to address the €1.5 billion shortfall from 2023 while ensuring current service levels are maintained in 2024.

However, in Budget 2024, only €808 million extra was provided in core funding. Most of this has been spent on maintaining existing services, while the remaining €100 million will be spent on investment in trains, such as staffing 162 new hospital beds, 22 intensive care beds, six surgical hubs and community beds.

According to the summer economic statement, the government’s €8.3 billion budget package for 2025 will consist of €6.9 billion in spending and €1.4 billion in tax cuts.

Current expenditure is forecast to total €90.9 billion, an increase of 6.4 percent compared to 2024. Capital expenditure will rise to €14.5 billion, an increase of 10.6 percent.

“There remains an ongoing need to improve public services and infrastructure, particularly in the context of a growing population and economy,” said Finance Minister Jack Chambers.

“The government has adjusted its fiscal strategy to take this into account, to support the continued delivery of improved health care services and to allow for higher capital expenditure.