Budget 2026 and the health service
Budget 2026 delivers the largest health allocation in the history of the State, providing €27.4 billion in funding as the Government aims to expand capacity, improve regional access, and advance the shift toward a ‘performance-led’ and ‘community first’ model of care.
In Budget 2026, announced on 7 October 2025, the Government allocated a record €27.4 billion health budget for 2026, representing a €1.5 billion (6.2 per cent) increase in current expenditure. The allocation is intended to support faster access to services, strengthen prevention and public health, and enhance the delivery of care across all six health regions.
Minister for Health Jennifer Carroll MacNeill TD has emphasised the need to “spend smarter” as well as to invest substantially, stating that Budget 2026 marks a decisive move toward aligning resources with performance and patient outcomes. Under the new funding model, each health region will have increased autonomy to plan, staff, and deliver services in line with local needs.
Workforce remains a central focus. The Health Service Executive (HSE) will recruit an additional 3,300 whole-time equivalent (WTE) staff in 2026. According to the Department of Health, improved deployment of existing staff, including the expansion of seven-day services, will play a key role in reducing regional variation in access and addressing waiting times.
Health regions
The Government’s ongoing regionalisation programme continues to form a major pillar of the reform agenda. Six health regions – Dublin and north east, Dublin and midlands, Dublin and south-east, south-west, mid-west, and west and north-west – are now responsible for planning and delivering the full continuum of public health and social care services for their populations.
Budget 2026 supports the further development of the regional executive officers’ governance and financial control responsibilities, alongside the progressive devolution of recruitment authority to regions. By granting each region more oversight of its workforce planning, service capacity, and partnership arrangements, the Government aims to enhance accountability and drive locally tailored decision-making.
Digitalisation
Funding has been allocated to strengthen core ICT infrastructure and maintain progress on flagship programmes including the HSE App, further rollout of the Shared Care Record, and expansion of the National Integrated Staff and Pay Records System.
In addition, more organisations will transition to the Integrated Financial Management System (IFMS), intended to improve data quality and provide more granular reporting of expenditure. The Department states that digital investments will support better decision-making, improved clinical outcomes, and enhanced value for money across the system.
Primary and community care
An important strand of Budget 2026 is the expansion of primary and community care, with the aim of shifting activity away from acute hospitals. Investment includes funding for new primary care centres, strengthening of advanced practice roles, and increased capacity for home support, community nursing, and allied health services.
The budget includes €217 million in additional spending for the Primary Care Reimbursement Service (PCRS), including €30 million for new medicines. The Government has signalled that enhanced out-of-hours GP services and expanded community diagnostic access will form part of the wider effort to reduce pressure on hospital services.
Mental health
Mental health sees a targeted increase in staffing and service development. An additional 300 WTE staff will be recruited in 2026, with a strong emphasis on crisis response. Specialist nursing teams will be deployed in all model four emergency departments out-of-hours, while new crisis resolution teams and “crisis cafés” will be established in Donegal, Kerry, and the midlands.
Child and Adolescent Mental Health Services (CAMHS) will receive funding to open 21 new acute inpatient beds, alongside 12 additional suicide crisis assessment nurses operating within community GP practices. The National Forensic Mental Health Service will also open 10 new intensive care rehabilitation unit beds.
Older people
Reflecting demographic challenges, Budget 2026 includes a €215 million increase for older persons’ services, a 7.1 per cent year-on-year rise. This covers €82 million to support an additional 1.7 million hours of home support, bringing the national total to 26.7 million hours for 2026.
The Fair Deal scheme receives €92 million to expand access to long-term residential care, including provision for 500 additional people. Capital investment will facilitate the opening of new beds in community nursing units, and a new scheme is being introduced to enhance environmental standards in nursing homes.
Further measures include €2 million in extra funding for Meals on Wheels, a 30 per cent increase, as well as €2.3 million aiming to improve dementia diagnostics and support services. The Government has confirmed that at least 22 per cent of all new home support hours in 2026 will be ringfenced for people with dementia.
Public health and inclusion health
The public health allocation for 2026 includes initiatives to increase immunisation and screening uptake, address harmful health behaviours, and support programmes focused on obesity, frailty, and chronic disease. Funding has been provided to enhance sexual health services, expand breastfeeding supports, and maintain access to PrEP medication.
An additional €11 million will support drugs and inclusion health services, expanding treatment capacity and targeting gaps in provision, particularly in rural areas. The Department also confirmed funding to increase environmental health officer staffing levels to strengthen inspection regimes, including supports for the Hot School Meals Programme.
Analysis and commentary
Budget 2026 reflects a health system undergoing structural transformation, with regionalisation, digitalisation, and community-based care shaping the Government’s approach. The €27.4 billion allocation is the largest ever for the sector, and is designed to balance additional capacity with a tighter emphasis on performance management and value for money.
Minister for Health Jennifer Carroll MacNeill TD says: “This budget emphasises our commitment to maximising the value of every euro invested in health to enhance all areas of service provision. There is a strong focus on expanding community services, with additional staff supporting increased provision of older persons services and mental health supports in line with our commitment to deliver high-quality care as close to home as possible and as a better, more affordable means than in acute hospitals.”
Sinn Féin health spokesperson David Cullinane TD describes the Budget as “severely lacking in ambition, detail, and long-term vision”. He adds: “The budget talks about enhanced capacity but the Government’s plans seem to be the best kept secret. There is no breakdown of how they intend to spend €720 million in funding for ‘expansion of services’, and it is not clear how much of this funding is solely for new measures.”
