Tusla Faces €68 Million Budget Deficit Amidst Soaring Demand

Child and Family Agency Warns of Significant Overspend Due to Unprecedented Service Needs

Ireland’s child and family agency, Tusla, has issued a stark warning of a projected €67.8 million budget shortfall for the current year, attributing the significant overspend to an overwhelming and unpredictable surge in demand for its vital services.

Unprecedented Demand Drives Budget Overrun

The agency, which had already reported an €8.9 million deficit by May, anticipates this figure to escalate dramatically by year’s end. The escalating costs are primarily driven by the increasing need for residential care, fostering placements, legal expenses, and support for separated children seeking asylum. Tusla’s monthly briefing highlighted that essential services, particularly for vulnerable children and families, cannot be materially reduced without detrimental impact.

Key Cost Drivers Identified

A substantial portion of the overspend, estimated at €38.8 million, is linked to placements for special care, fostering, and private residential arrangements. The agency is actively trying to curb costs by expanding its own residential facilities to replace costly emergency measures. However, fluctuating placement costs remain a significant concern, exacerbated by the necessity for “out-of-state placements” for a small number of children requiring UK-based services when facilities are unavailable domestically. Costs for staff travel are also projected to rise by as much as €2.2 million, despite expense controls.

Impact of International Protection and Legal Costs

The growing number of children seeking international protection, particularly separated minors arriving without parents, is placing additional strain on resources. Tusla anticipates an overspend of approximately €6.1 million to accommodate 343 residential placements for these vulnerable asylum seekers. Furthermore, increased court usage of ‘Guardian ad Litem’ (GAL) appointments, individuals appointed to represent a child’s interests in legal proceedings, is contributing to escalating legal expenditures.

“Throughout 2025, the agency has experienced unprecedented demand for services, which was unpredictable in nature, and we have worked to prioritise cost saving initiatives around these contributing factors. Tusla has strong budget controls in place, however the projected overspend for 2025 is the result of demand-led pressures in the agency for the accommodation of children in the care of the state as well as costs for accommodating unaccompanied minors and associated legal and Guardian ad Litem (GAL) costs.”

—Tusla Spokesperson

This surge in demand echoes a broader trend in child welfare services across Europe. For instance, in November 2023, the UK’s Department for Education reported a 60% increase in the number of children in care between 2012 and 2022, highlighting the systemic pressures faced by similar agencies. Source: UK Government Statistics

Efforts to Mitigate and Future Outlook

Tusla is implementing strategies such as “strict pricing arrangements” for residential placements, which yielded some savings in 2024 and are intended to continue. The agency’s spokesperson emphasized the commitment to cost-saving initiatives while acknowledging the unprecedented demand as the primary driver for the projected deficit. The agency aims to manage these pressures, prioritizing the welfare of children in its care while navigating the complex financial landscape.