The HSE has written to managers in HSE Dublin and southeast region and the southwest region informing them that a pause on recruitment will apply across all non-frontline “non-critical posts”.
It said exceptions will only be considered where supported by a documented business case and subject to approval.
“This includes recruitment of all non-frontline management and administration staffing,” it said.
The memo said priority should be given to critical posts “rather than automatically replacing vacancies on a like-for-like basis”.
“All recruitment must be actively reviewed,” said the memo to the executive management team in HSE Dublin and Southeast.
The memo was sent by Martina Queally, regional executive officer in HSE Dublin and southeast on April 30.
She asked the management team to review its pay allocation, with particular attention to the use of agency staff, overtime, and any current arrangements classified as exceptional payments.
Today’s News in 90 Seconds – May 6th
“The Quarter 1 position for HSE Dublin and South East shows a year-to-date deficit of €37.4m against budget, representing 5.7pc,” she said.
“This level of variance, together with the nature of the overspend and the limited impact of corrective actions to date, has resulted in the region being placed under financial escalation.
“Immediate and decisive action is required across the region to realign expenditure with approved levels through stronger financial controls”.
The memo said that all “agency engagements, extensions and conversions” would require prior approval by regional executive officers.
“There is no approval for agency management and administration,” it said.
“Existing arrangements must cease with immediate effect.”
It said agency spend must be contained with a 2026 annual cap.
The memo said this will require reduced agency spending for the remaining months of this year for any area that exceeded its spend in the first quarter of the year.
In terms of income collection, it said there is a “renewed focus” on emergency department collections and processing of private health insurance claim forms.
“You are required to identify and submit a detailed, line-by-line schedule of reduced discretionary non-pay expenditure as part of your savings plan,” said the memo. “The requirement is a 2pc reduction on non-pay budget.”
The memo said discretionary spend is spending that managers have some level of choice or control over. It said it is spending that can be reduced, delayed or stopped “without immediately compromising essential patient care or statutory obligations”.
Speaking at the Irish Nurses and Midwives Organisation conference in Dundalk on Wednesday, general secretary Phil Ní Sheaghdha, said the HSE goes from year to year with a budget that is too small.
“The only leeway they have is curtailment of services,” she said.
She said this is the wrong model and multi-annual budgeting is required.
“We need to know exactly how many staff are going to apply, but if this ‘stop start’ in recruitment keeps going it is exactly what will force nurses and midwives to emigrate.”
She said the HSE memo indicated there was an emphasis on clinical frontline posts being protected. She said union officials are meeting health service managers later today to make sure they understand what the memo means.
“What the HSE are saying is that the budget does not allow for recruitment and they are tightening the restrictions,” she said.
“They have noted that clinical posts will be exempt for the moment but we have to again say ‘We’ve heard this before’.
“This is a precursor to an embargo.”
The ICTU staff panel of Health Unions said it was “deeply concerned” by the move.
“The move appears to breach the 2025 WRC agreement on the HSE’s Pay and Numbers Strategy and Labour Court recommendation, all of which require meaningful consultation with unions before such measures are implemented,” it said.
“While the staff panel support measures to reduce excessive agency spending, the unions position has consistently been that this must be achieved through increased direct employment.
“The priority must be to move away from costly agency dependence and towards secure, directly employed staffing arrangements that strengthen public health services and deliver better value for the taxpayer. The staff panel have sought urgent engagement with the HSE.”
Ashley Connolly, Fórsa’s Head of Health & Welfare division, said: “Yet again the HSE has failed to engage with the trade unions, and is imposing arbitrary measures which impact on the delivery of services. We have consistently raised the problem of excessive spending on agency staff and private consultants, problems that remain unaddressed.”
Kevin Figgis of SIPTU said: “It remains questionable as to whether health budgets are fit for purpose. Failing to meet requirements for direct employment affects the delivery of services, because it generates a chaotic approach to employment in health.”
Dr Edward Mathews, deputy general secretary of the INMO, said: “It is inconceivable that the HSE has again moved to restrict recruitment, while failing to address the underlying issues. These restrictive measures continue to impact on our members ability to deliver safe services.”
