Dáil Éireann Debate, Tuesday - 7 October 2025
508. Deputy Ken O'Flynn asked the Minister for Children, Disability and Equality the specific supports (financial, operational, training, or business supports) which are being made available to smaller and rural childcare providers to maintain their viability within the core funding scheme. [52984/25]
View answerWhen first introduced in 2022, Core Funding had an annual allocation of €259 million. That annual allocation has increased each year since and will exceed €390 million for year 4 of the Scheme, starting in September. This represents an increase of over 50% in Core Funding in three years.
The Department has also made changes to improve the sustainability of providers through, for example, targeted measures for small and sessional services, a fee increase assessment and approval process for services with fees frozen at unsustainably low rates.
I understand services in isolated rural areas may face revenue challenges due to the natural fluctuations in a small local population. As a part of the Case Management process, financial assistance under sustainability funding may be granted in respect of the ongoing operational expenditure and liabilities of a service facing and unable to deal with these challenges. This funding is designed to support the continued provision of ELC/SAC Services Providers in rural communities and encourage efficiency by providing governance and business model supports to support the long-term sustainability and safeguard invest
As part of the Case Management process, City /County Childcare Committees assist services with issues and difficulties that arise. The CCC may refer Core Funding-partner services facing difficulties to Pobal and the Department to be considered for Sustainability Funding. Sustainability Funding is intended to prevent significant issues that threaten the viability of a service. Any service seeking these supports should contact their City/County Childcare Committee.
If a service is experiencing financial difficulty or concerns about their viability, they can avail of special supports available from the Department. These supports are open to all Core Funding Partner Services, both community and private, who are experiencing financial difficulty, following a financial assessment by Pobal. These supports can be accessed through local City/County Childcare Committees (CCC).
The supports provided by local CCCs include, assisting services with interpreting analysis of staff ratios and cash flow, as well as more specialised advice and support including financial supports as appropriate to the individual circumstances of Partner Services.
Although the Government is the primary funder of the sector, it is not the employer and cannot directly set wages or conditions. Instead, wage rates are negotiated through the Joint Labour Committee (JLC) process, with outcomes formalised via Employment Regulation Orders.
Thanks to the JLC process, and the State funding provided through Core Funding, minimum pay rates have increased twice in 2 years seeing, on average an increase of 13% in rates.
This Government remains committed to ‘continue to implement Employment Regulation Orders to attract and retain early years educators.’
Outcomes from the JLC process are supported by the Government through the Core Funding scheme, which has an allocation for this programme year (2025/2026) of €350 million.
For the 2025/26 programme year, €45 million has been specifically ringfenced to support employers with additional costs. The allocation of this funding to the sector is conditional on new Employment Regulation Orders being in place.
I have been informed that the JLC has, after public consultation, unanimously agreed on proposed new minimum rates of pay for the sector and has submitted these proposals to the Labour Court. If adopted by the Labour Court, these proposals will be laid before the Minister of State for the Department of Enterprise, Tourism and Employment for consideration, as provided for under the Industrial Relations Act 1946.
I am hopeful that these proposals will soon come into effect, marking a positive change for our dedicated and skilled educators in the early learning and childcare sector and the services that employ them.
The Department continues to roll out ‘Nurturing Skills: The Workforce Plan for Early Learning and Care and School-Age Childcare, 2022-2028’ was launched in December 2021. It aims to strengthen the ongoing process of professionalisation for those working in the sector. It contains a range of commitments to raise the profile of careers in the sector and to support recruitment, retention and diversity in the workforce.
Department officials also discuss issues of recruitment and retention with stakeholders through a Sub-Group of the Early Learning and Childcare Stakeholder Forum. The general consensus of the Group is that pay is the single biggest issue but the Group has identified other actions, which the Department is now following through on, including:
• a Student Fast-track Process for recognition of studies to work in service out-of-term,
• the assessment of unfinished qualifications, where people who may have started a relevant qualification but did not get to finish it, can have what they completed assessed for meeting qualification requirements,
• an agreement to promote careers in the sector.
The Core Funding model commits to drive high-quality service provision. To support this, Core Funding requires all early learning and care (ELC), school-age childcare (SAC) and childminding services that benefit from Core Funding to engage in quality improvement practices, and to complete a Quality and Inclusive Practice Plan (QIPP) and end of year QIPP report. The DCDE provides the necessary tools and guidance for completion and the City and County Childcare Committees are available to support Partner Services at every stage of the Quality and Inclusive Practice Planning process.
