Services who contract into Core Funding are required to keep their fees at the same level as the fees charged to parents in September 2021.
Partner Services may create a new Service Type and agree that the fee for any new Service Type will be calculated as not more than a proportion of the closest equivalent fee extant on September 30, 2021 which, all other things being equal, would apply to the eligible child. The proportion of the fee cannot exceed the relative proportion of the Service Type.
Where a Partner Service increases the level of service offered, a higher fee can be charged for this, but the higher fee must be in direct proportion to the increase. For example, for an increase in full-day care from 40 hours/week to 50 hours/week represents an increase of 25%, a higher fee can be charged for this but it cannot exceed an increase of 25% of the previous fee that was charged to parents/guardians as of 30 September 2021.
Where the amount of service offered is decreased, the fee charged must also decrease by at least the same proportion. If a new Service Type with shorter hours is introduced, the fee charged should be set in proportion to the closest existing Service Type, as above for cases where the Service Type has longer hours.
Where a Partner Service removes a Service Type and replaces it with a new Service Type, for example stops offering Part-Time and replaces this with Full-Time only, the fee for the old Service Type must also be removed and the fee charged for the new Service Type must be proportionate to that which was charged for the previous Service Type.
This fee freeze will remain in place for the majority of these services for year 3 of Core Funding, though there are two new developments:
• Services whose fees have been frozen at a level that may not be sufficient to sustain their business even with increased funding available through Core Funding, will have the opportunity to apply for a Fee Increase Assessment. Only services currently charging low fees (fees below the average in their county) will be eligible to apply and the onus will be on the provider to demonstrate a need for a fee increase. Any approved fee increases by my Department will not go above the increased universal NCS subsidy that a parent would be receiving for the full hours offered within the fee. This means that parents receiving the universal NCS subsidy for the full hours offered in these services will not face higher costs.
• A cap on fees is being introduced for services joining Core Funding for the first time in the third year. A fee cap will apply to all services in Core Funding from September 2025. This change will improve affordability for parents, as very high fees will be reduced.
Additionally, any parent/guardian with concerns or questions about fees or in the event that an individual wishes to raise a concern regarding a potential breach in fee conditions, the first step is and are encouraged to reach out to their local CCC for support and guidance. Contact details for local CCC can be found at www.gov.ie/childcarecommittees.
My Department is in continuing contact with CCCs regarding the information provided to parents and has made the fee review process publicly available on the Hive under the Guidelines on Fee Management tab.
