Many specialist disability service providers are experiencing funding, operational and governance challenges, the Government department responsible for the sector has said.
The Department of Children, Equality and Disability said that while significant additional money had been provided – an increase of more than €300 million this year – there was “a need to better understand and ultimately address the systemic sustainability and stability challenges being experienced by disability organisations across the sector”.
“The department, in conjunction with the HSE, have agreed a programme of work to achieve a better understanding of unit costs, expenditure drivers and forecast demand to ensure investment is targeted appropriately and effectively,” it said.
Organisations providing disability services have argued – both individually and through the National Federation of Voluntary Service Providers – that the sector is facing significant funding and staffing difficulties.
Across the sector there are concerns that financial problems pose threats to viability of organisations, and limit their ability to provide supports and meet regulations. It is understood that organisations have pointed to insufficient funding as well as historic and current deficits.
The sector is now seeking to develop a unified approach to raising its concerns with Ministers and with the HSE.
In recent months a number of organisations have warned the HSE about deteriorating financial positions.
The Department of Disability said neither senior Minister Norma Foley nor the Minister of State for disabilities Hildegarde Naughton had directly received correspondence from the chairs of organisations that provide services setting out concerns regarding their financial position.
“However, it is acknowledged that many specialist disability service providers are experiencing funding, operational and governance challenges. The financial challenges facing the voluntary sector are highly complex, arising from both historical issues around funding arrangements as well as current and emerging challenges due to changing profile of user need, higher safety and quality standards and general demographic pressures.”
The department said it provided funding to the HSE to deliver specialist disability services either directly or via Section 38 and Section 39 voluntary organisations.
“In 2025, €3.2 billion in funding is being provided to the HSE for specialist disability services, representing an increase of €1.2 billion since 2020. Of the €333 million in additional funding for 2025, €290 million was provided to maintain the existing level of service, a significant provision which recognises the challenges prevailing in the sector including the increased cost of service provision, pay cost pressures and service provider sustainability.”
It said €162 million in supplementary funding had also been provided to meet in year costs.
In December the chairman of the Muiríosa Foundation, Hugh Kane, told the HSE that his board had “grave concerns” at its financial situation.
He said, “There has been a continuous increase in the deficit year-on-year creating a significant challenge to Muiríosa’s ability to deliver high-quality support services.”
That same month Ciaran O’Mara, the chairman of Stewarts Care, warned the HSE it was facing a potential loss of €2.6 million after anticipated funding did not materialise.
“Without appropriate and basic financial support, there is going to be a severe impact on the community that Stewarts Care services support on behalf of the HSE.”
He warned it could face “the possible resort to non-payment of liabilities to the Revenue and/or our pension provider to meet the immediate liability to staff payroll, leaving the directors and the organisation open to action for breach of revenue law and pensions law, as well as general Company law”.
