Dáil Éireann Debate, Wednesday - 15 October 2025
280. Deputy Roderic O'Gorman asked the Minister for Children, Disability and Equality to outline the additional money that has been allocated for Core Funding in 2026; the additional money which has been allocated for Core Funding across the 2026-27 programme year; for a breakdown of what the additional money is for, and the amount of it that is tied to staff pay; and if she will make a statement on the matter. [56001/25]
View answerThe Government is committed to ensuring access to affordable, quality early learning and childcare, with an investment of €1.48bn in this budget to build on the progress made in recent years.
2026 sees an allocation of €405.21 million made available for Core Funding. This is an increase of €51.97 million on the 2025 allocation of €353.23 million – representing a 15% year-on-year increase. The additional funding allows for the continued implementation of the Core Funding scheme for the fourth programme year (September 2025 to August 2026) and continuing into the fifth programme year starting September 2026 with strengthened support.
The additional funding being made available in 2026 will see the allocation for Core Funding in 2026/2027 programme year increase to €436.54 million – that is an additional €43.90 million on the current full year allocation, or an 11% increase.
This increased investment will allow for a 4.2% increase in the growth of the sector in year five of the scheme. This growth increase will be driven both by new services joining the sector and existing services offering more places and/or longer hours to families. €14.45 million has been secured for this purpose in a full programme year.
A further €0.89 million has been secured in a full programme year specifically to extend support to new capacity created by the Building Blocks Grants.
Increases to the allocations for non-staff overheads will ensure that the scheme is adequately responding to increased costs. €8.34 million has been secured for this purpose in a full programme year.
In addition, €20.2 million had been secured to support providers in adhering to the fee management conditions including reductions in the maximum fee caps in the 2026/2027 programme year. This will guarantee that Core Funding’s monetary protections will continue to be passed on to families while ensuring sustainability and stability for the sector.
The allocation for Core Funding in last year’s Budget, through the ringfenced allocation to support providers with the outcomes of proposed new Employment Regulation Orders, will support on average a minimum hourly rate increase of 10% for all roles outlined in the Employment Regulation Orders and will improve rates of pay for over 67% of staff working in services.
The Government is committed to supporting a new ERO process in the second half of 2026 and to making available a similar sum in 2026 for a further future round of pay improvements, subject to the deliberations of the independent Joint Labour Committee.
