Government warns Tusla about staying 'within budget' this year after overspend of €80m in 2024
Child and Family Agency Tusla had a projected overspend of €80m last year, and it must work 'to avoid a similar situation arising in 2025', the Department of Children has said.
Tusla said the 'demand-led' pressures which caused it to have an overspend last year 'are expected to continue to exert pressure' this year.
Minister for children Norma Foley on Wednesday published a roadmap for Tusla this year, with a 'performance statement' setting out policy guidance and direction, as well as what should be prioritised in 2025.
It said that, despite a 'historic investment' of more than €1.1bn in 2024, Tusla was still projected to finish out the year with a significant overspend.
The department said: 'The main drivers of this overspend are demand-led increases in residential care placements, private foster care placements and increased volumes of separated children seeking international protection arriving in Ireland.'
It said supplementary funding to match this €80m overspend was secured by the department in October.
The department was clear Tusla's business plan for this year must align with this performance statement, as it requested more detailed financial reporting and forecasting by Tusla to track emerging overspend on a monthly basis.
'In developing Business Plan 2025, Tusla must ensure that the financial framework presented is in line with and does not breach the maximum budget available,' it said.
'To the extent that Tusla may face additional cost pressures in 2025, the business plan should outline mitigating controls being put in place, and these should be implemented during 2025, to ensure that Tusla remains within budget for the year.'
In its subsequent business plan, Tusla said it would maintain 'good oversight' on its budget allocation to ensure the 'least possible risk' of overspending again this year.
Breaking down its €80m overspend, it said €29m was in the area of separated children seeking international protection, €13m was from disability costs from the HSE, €5m was in court-directed guardian ad-litem costs, and €34m in mainstream costs.
However, it warned keeping costs down would be difficult given the need for its services.
'Based on the current trends being experienced and Tusla's statutory duty to provide services for Separated Children as well as mainstream care, we do not expect a reduction in demand for these services in 2025, resulting in continued pressure to remain within budget,' it said.
From this year's budget, €23m will be used to address 'demand-led deficits' rolling forward from last year, which includes existing overspends that were not covered by the additional Government funding.
Another area on overspend was on staff travel, with an extra €2m projected to have been overspent in 2024.
'Tusla has introduced restrictions on travel to reduce expenditure and focus on mainly service-related travel,' it said.
'Cost-control measures continue to be monitored for travel, hotel usage and other costs to ensure that the best use of resources is being obtained.'
This year, Tusla will be in receipt of more than €1.2bn from the Government, an increase on its 2024 allocation.
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