Primary school principals across Cavan and Monaghan have raised with me consistently the ongoing challenges they face in meeting day-to-day expenditure requirements. There have been improvements in recent years in capitation payments and I hope that budget 2026 will provide for a further increase. School principals and boards of management outline clearly the need for further financial assistance. Energy costs, including for electricity and oil, and insurance account for a substantial proportion of the overall capitation grant. One principal said to me that insurance was a dreadful burden on the school's resources. Some schools do not receive a meaningful ancillary grant payment. There are many other calls on the capitation grant, including the purchase of essential teaching resources and ongoing maintenance costs. I am aware of small schools that have substantial professional fees to pay for the preparation of applications for emergency minor works projects, all coming from the capitation grant, without certainty of approval of such applications. Classrooms need to be properly resourced and there cannot be more and more demands on school staff, parents, boards of management, parents associations-----

Thank you, Deputy. The Taoiseach to respond.

-----and local businesses to meet day-to-day expenditure and annual costs.

I thank Deputy Smith for raising this issue. I know this is an issue close to his heart. The Department is committed to offering all available and appropriate supports to all schools. Last year, the then Department of Education provided per capita grants to all recognised primary and post-primary schools. There are two grants: the capitation grant and the ancillary grant. Schools have flexibility to manage these grants as a combined fund. The current capitation rate for primary schools is €200 per pupil and the ancillary grant is €173. As part of last year's budget for 2025, the Department secured more than €30 million for a permanent increase in capitation funding. This represents a 12% increase on current standard enhanced rates and follows a 9% increase on budget 2024.

From September this year, the new capitation rates will be €224 per pupil in primary schools and €386 per pupil in post-primary schools.

Thank you, Taoiseach.

This is an important point. In addition, the capitation grant payment in June 2025, which will be a balancing payment for the period of January to December, will include the new increased rates effective from September 2025.