Another record allocation for health but detail awaited

For another successive Budget, the healthcare sector received a record allocation. In Budget 2025, the record figure was €25.8 billion; in Budget 2026, it was €27.4 billion, an increase of 6.2 per cent.

In the Department of Health press statement that followed the Budget announcement, however, the emphasis was more on value for money and productivity than highlighting the record levels of investment.

“As the State moderates its spending growth, I have secured a budget that will support faster access to quality care, while maximising value for money,” the Minister for Health Jennifer Carroll MacNeill said.

“We cannot continue to spend more without spending smarter and Budget 2026 represents a sea-change in how we target our investment. We are striving for increased productivity in all regions and driving innovation as we develop faster, smarter, and safer ways of delivering healthcare.”

The press release referred to extended hours for operating theatres, expanded access to diagnostics, and moving hospital activity to community settings, as examples of this commitment to productivity.

“As we shift to a performance-led model, I expect all six health regions will address the specific needs of their local populations and demonstrate clear improvement in results,” according to the Minister.

“This is our path towards a health service that is economically sustainable for the future and a true representation of Sláintecare.”

Opposition parties say this commitment to Sláintecare is no more than lip service.

Social Democrats Health Spokesperson Pádraig Rice said in seeking value for money, the Minister “has lost sight of reform”.

Deputy Rice, who is Chair of the joint Oireachtas health committee, said there was no genuine indication that health service was moving away from a hospital-centric model, noting the lack of funding to expand free GP care.

“Rarely has there been a more underwhelming Budget for health – the Minister has shown no ambition and no commitment to change.”

Doctors also expressed scepticism. The IMO described talk of record levels of spending as a “smokescreen”.

The Organisation added it was “disingenuous” for the Department to suggest that productivity and rostering measures will result in better experiences for patients. It said true productivity is about more than the numbers of patients seen; it is about delivering quality healthcare and improving outcomes.

IMO President Dr Anne Dee said: “Budget 2026 has unfortunately failed to deliver the funding and planning needed to cater for a growing and ageing population. Any commentary around record levels of funding for the health service ignores our demographic reality, as well as the cost of new medical and therapeutic interventions.”

According to the Budget announcement, funding will be provided for 3,300 additional HSE staff to be recruited.

Of these, 300 whole-time-equivalents will be hired in mental health services. This represents nine per cent of the overall growth in health service staffing next year.

The total allocation for mental health for 2026 will be almost €1.6 billion.

The Department pointed out this too is a record level of funding and an increase for the sixth year in a row.

However, again, doctors say the matter is not simplistic.

Dr Lorcan Martin, President of the College of Psychiatrists of Ireland, said: “We thank Minister [for Mental Health Mary] Butler for her work on this Budget and the improvements that will hopefully be made to mental health services as a result. That said, the College believes more can be done to bring mental health services in this country up to the standard it should be at.”

Dr Martin pointed out the mental health portion of the overall health budget should be at 12 per cent.

“Despite the pledge of €27.4 billion for health, we are still a long way away from hitting this target. We await measures that will make a permanent difference to the mental health of Irish people.”

As ever, it will take time to discern whether record figures on paper will amount to meaningful progress in practice.