I know that the vast majority of Members will agree with me that the preferred option for children coming into the care of the State is foster care. It is the first option. This is where almost nine in every ten children in care are placed. However, Tusla operates in a very challenging and demand-led environment providing vital services to children, young people and families that often present with particularly complex issues, and foster care might not meet their needs. Tusla has acknowledged the need to increase its provision of residential placements, including those provided by community and voluntary organisations. Like the Deputy, I want to take this opportunity to acknowledge the incredible work done by staff in community and voluntary organisations to provide safe and supportive placements for children in care. I was really pleased to meet with representatives of the community and voluntary sector in January of this year to discuss matters affecting them and the children for whom they provide care.
It is important to note that the State has invested significantly in community and voluntary care provision, with the sector being allocated an increase in funding of €5.2 million in 2023 to ensure its ongoing sustainability. I was also pleased to see community and voluntary workers agree to a pay increase of 9.25% last year, ensuring that voluntary workers are better paid for their very valuable work.
I am conscious that Tusla is independent in its functions and it is a matter for the agency to manage and allocate resources, including voluntary residential provision, to address areas of greatest need while managing within its allocated budget. In 2025, Tusla reported that it had provided funding for community and voluntary residential provision of just under €30 million. The Department continues to support Tusla in the provision of the funding and resources needed to carry out its functions.
It is committed to ensuring the continuity of Tusla's work in supporting vulnerable children and families, as evidenced by the year-on-year increases in funding provided to the agency. In budget 2026, an overall increase of €177 million was provided, which amounted to a 14% increase in Tusla's budget over its 2025 allocation.