About the IACP:
The Irish Association for Counselling and Psychotherapy (IACP) was established in 1981 to identify, develop, and maintain professional standards of excellence in counselling and psychotherapy. Our work promotes best practice and the development of the profession and we represent 6,500 members based in communities all over the country making the IACP the largest counselling and psychotherapy association in Ireland.
Executive Summary:
The IACP is calling on the Government to increase investment in counselling and psychotherapy with the aim of establishing universal access to therapeutic services for all in need. To support the achievement of this goal, the IACP has identified three key recommendations to be prioritised in the 2026 budget:
1. Removal of VAT on counselling and psychotherapy services
2. Extension of tax relief to counselling and psychotherapy fees
3. Investment in and expansion of access to school counselling at the primary and secondary levels.
Despite the Government's long-standing acknowledgment that mental health funding is vitally important to the overall health and well-being of the people of Ireland we’re disappointed to note that efforts have not progressed quickly enough. Commitments have made to increase access to therapeutic services under the Sharing the Vision, "to enhance the provision of mental health services and supports across a broad continuum from promotion of positive mental health to specialist mental health service delivery."
What we need now are concrete solutions that will directly address the shortage of mental health professionals and proactively support people accessing counselling and psychotherapy in Ireland.
Our Recommendations:
The IACP believes there are impactful steps that the Government can take through Budget 2026 and direct policy adjustments to respond to the growing mental health needs of all people in Ireland with increased investment in mental health care. The IACP’s proposals would facilitate equal treatment of mental and physical health, affordability, and increase access to much-needed counselling and psychotherapy services for all people.
1. Remove VAT on Therapeutic Services
A straightforward measure to increase the availability and affordability of therapy services in Ireland and directly aligning with Government commitments, is the removal of VAT on therapeutic services. Currently, counsellors and psychotherapists must levy a 13.5 percent VAT on services if their turnover exceeds €42,500 annually. Removing VAT would directly reduce the cost of accessing these essential services, making them more attainable for individuals already struggling financially.
Mental health must be given equal priority to physical health in Ireland. The application of VAT burdens clients, making access to mental health supports out of reach for many who need it the most. Extending the VAT exemption to counselling and psychotherapy services will reduce the cost of therapy, thereby improving access to these essential services.
A nationally representative general public survey, commissioned by the IACP (Public Attitudes to Counselling/Psychotherapy and Mental Health, July 2023. Report prepared by Larry Ryan, B&A) found that not being able to afford therapy is the biggest reason that discourages people from seeing a counsellor or psychotherapist. When we asked the same question in 2019, 26% cited the cost of therapy as the main barrier. That figure has increased to 50% of those surveyed in 2023 citing that cost is a significant barrier to accessing mental health supports.
The IACP calls for a pre-registration VAT exempt status for qualified and accredited IACP and other professional organisations members and seeks to rectify the inequities arising from the delay in establishing the CORU statutory register. This proposal aligns with established practices and would ensure that fair treatment prevails in the interim period. The application of VAT to these therapeutic supports, places a financial burden on clients thereby hindering access to mental health support. This contrasts with the profession of psychology (yet to be state regulated) which has been granted a VAT exemption on psychology services.
While it is not possible to estimate the precise cost to the Exchequer of this proposal due to the absence of robust data, the cost of investing in counselling and psychotherapy can be offset against their demonstrable effect on keeping people healthy and well and thereby reducing pressure on other public services.
2. Extend Tax Relief to Counselling and Psychotherapy Fees
The IACP is calling on Government to extend tax relief to counselling and psychotherapy fees, thereby establishing parity with other essential healthcare expenses. Just as we support physical health expenses through tax relief, we must do the same for mental health. Recognising that mental health is an equally important aspect of a person’s overall well-being, the financial strain of seeking support should be alleviated in the same manner as costs associated with physical health. This important step would help to empower individuals to prioritise their mental health, remove some of the financial burden, thus fostering a healthcare system that truly values mental and physical health equally. This measure directly aligns with recommendations in Sharing the Vision “to ensure parity of effort and emphasis on mental health promotion and physical health promotion.”
3. Invest In and Expand Access to School Counselling
Beyond making therapy more accessible to individuals, we must also invest in prevention and early intervention. The IACP have advocated tirelessly for the introduction of school counselling and so we enthusiastically welcome and support the progress of the Counselling in Primary Schools Pilot 2023-2025.
This pilot, with its two distinct strands, represents a significant step towards supporting children's wellbeing and mental health in schools. The increasing uptake in counselling by children availing of this pilot since its inception is a testament to the urgent need for this programme. This clear demand shows us that further investment and more comprehensive action is urgently needed to ensure this pilot is successful.
It is especially important that the school counselling programme is integrated into secondary schools, children need a continuum of care so they continue to receive timely access to mental health supports as they enter the next phase of education and the often-challenging times the teen years can bring. It is vital to the mental health and well-being of children and adolescents that counselling services are embedded in all primary and secondary schools across Ireland.
Nationally representative public surveys, commissioned by the IACP over the last number of years consistently demonstrate the need for this essential service, with almost nine in 10 supporting the idea of counselling and psychotherapy being made available through schools (Public Attitudes to Counselling/Psychotherapy and Mental Health, July 2023. Report prepared by Larry Ryan, B&A).
To achieve this, the school counselling programme must be adequately resourced with qualified counsellors and psychotherapists and, so that every child in every primary and secondary school across the country has access to these professionals when needed.
Conclusion
Budget 2026 presents a key opportunity for the Government to address Ireland's accelerating mental health needs. The IACP's practical recommendations – removing VAT on therapy services, extending tax relief for counselling and psychotherapy fees, and ensuring accessible and expanded counselling in schools – are solid implementable measures.
These steps will increase accessibility to therapeutic supports, reduce financial barriers for individuals seeking help, and enable early intervention, particularly among our children and young people. By investing in these measures, the Government can demonstrate a genuine commitment to fostering a healthier Ireland where mental and physical health are equally prioritised. The IACP stands ready to engage further with Government and join forces in making this a reality.
Contact:
Lisa Molloy, Chief Executive Officer
Lisa@iacp.ie
Nicole Mac Dermott, Communications Supervisor
Wayne Tobin, Communications Officer
communications@iacp.ie