Tusla has issued a warning that it is on course to exceed its budget by nearly €68 million this year, as it faces surging demand for its services, reports Breaking News.
The child and family agency revealed in a May update that it had already gone over budget by €8.9 million and projected this figure would significantly increase by year-end.
For 2025, Tusla anticipates an overall overspend of €67.8 million, including €7.6 million linked to children in the international protection system and refugees from Ukraine, reports Breaking News.
In its monthly report, the agency noted that demand was rising, particularly in areas such as residential care, foster placements, legal costs, and care for unaccompanied minors seeking asylum.
It explained that efforts were underway to reduce costs by growing residential care capacity to replace the use of special emergency arrangements, which were described as a “significant cost driver,” reports Breaking News.
Tusla reported some cost reductions in this area during 2024 due to a “strict pricing arrangement” and indicated that this measure would continue throughout 2025.
Still, the agency cautioned that expenses remained “unpredictable” because of the high cost of care placements, reports Breaking News.
The report stated: “As the majority of Tusla’s expenditure is on demand-led arrangements, it is not possible to reduce expenditure materially to meet the budget allocated, without adversely impacting on services for vulnerable children and families.”
Tusla forecasted an overspend of €38.8 million related to placements in special care, foster care, and private residential services, reports Breaking News.
It also highlighted the steep cost of “out-of-state placements” — situations where a small number of children are transferred to the U.K. when no suitable services are available within Ireland.
The briefing noted: “If the agency cannot place children into special care in the existing facilities in 2025, this has the potential to impact on this year’s overspend,” reports Breaking News.
Staff travel expenses are also expected to increase by as much as €2.2 million, even though spending controls have been introduced.
Tusla pointed to a significant rise in the number of care placements for unaccompanied children who applied for international protection in Ireland, reports Breaking News.
In this area, an overspend of around €6.1 million is anticipated to provide 343 residential placements for vulnerable asylum-seeking minors.
Another pressure point for Tusla is the ‘Guardian ad Litem’ (GAL) system, where individuals are appointed by the court to represent children’s interests, reports Breaking News.
“There is continued increased usage of GALs by the courts,” the document said, “and this also has an increased legal cost,” reports Breaking News.
The agency also expects to exceed its budget in providing services for child refugees fleeing the war in Ukraine, based on documents released under the Freedom of Information Act.
In response to queries about its financial difficulties, a spokesperson stated: “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,” reports Breaking News.
“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,” reports Breaking News.
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