Dáil Éireann Debate, Tuesday - 18 November 2025
919. Deputy Barry Ward asked the Minister for Children, Disability and Equality her views on the adequacy of the aspect of the core funding childcare scheme, related to the time thresholds for each band (details supplied); the actions she will take to address these concerns; and if she will make a statement on the matter. [63355/25]
View answerCore Funding is a supply-side payment to early learning and childcare services to support them with their operating costs, and is designed to support affordability, quality and sustainability in the sector. Core Funding has brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, of which €210.8 million was entirely new funding.
An allocation of over €405 million for the Scheme was secured in Budget 2026. This is an increase of €52 million on the 2025 allocation of €353 million – representing a 15% year-on-year increase and a 56% increase over the 2022 allocation of €259 million.
A key feature of Core Funding is the introduction of a system of fee management, to ensure that affordability measures and increased investment are passed on to parents/guardians. This began with an effective fee freeze from September 2022. In return for significant funding through the scheme, Partner Services agree not to raise their fees above what was charged to parents as on 30 September 2021. Maximum fee caps were then introduced for new entrants beginning in Year 3 of the Scheme. The maximum fee caps have since been reduced and extended to all new and existing Partner Services in Year 4.
The Department is aware that there has been some confusion in relation to the new maximum fee caps regarding the fee bands. In the press release issued on 5 June 2025, it was announced that the new maximum fee caps are facilitated by the Common Fee Structure, which organises Service Types by weekly hours into six Fee Bands, from Band A (less than 10 hours) up to Band F (50 hours or more).
Each Fee Band in the structure has a corresponding maximum allowable fee under Core Funding. This is reflected in the quote above as “a full day place of between 40-50 hours per week” when using Band E as an example of a typical full day care place. Statutory regulations categorise full-time provision as anything more than five hours per day, or 25 hours per week. Most full-day services fall into Band E and this is why Band E was used as the reference point in this instance.
As demonstrated in the Fee Cap Table included in the press release, and featured below, full day care consisting of 50 or more hours per week is capped at €354, or €257.70 when NCS subsidies are applied.
|
Fee Band |
Hours per week |
Maximum weekly fee for ALL Partner Services in 2025/2026 |
|
Band A |
Less than 10 hours |
€59 |
|
Band B |
Between 10 hours and 19 hours 59 minutes |
€118 |
|
Band C |
Between 20 hours and 29 hours 59 minutes |
€177 |
|
Band D |
Between 30 hours and 39 hours 59 minutes |
€236 |
|
Band E |
Between 40 hours and 49 hours 59 minutes |
€295 |
|
Band F |
50 or more hours |
€354 |
The new maximum fee caps place a limit on the maximum fees that can be charged across all types of provision.
Fee caps are stepped down on a pro rata basis, meaning there is a maximum amount a service can charge at each Fee Band, from Band A (less than 10 hours per week) up to Band F (50 hours or more per week). The hours per week and associated maximum fee at each Fee Band refer to the care purchased by a parent for their child on a weekly basis.
For example, if a child is enrolled in a childcare afterschool session within a Core Funding Partner Service that runs for anywhere between 20 hours and 29 hours 59 minutes per week, then this falls under Band C as per the above. The maximum fee that could be charged for care under Band C is €177 per week. The out-of-pocket cost, or copayment, is dependent on the number of National Childcare Scheme (NCS) subsidy hours availed of. This subsidy is available at a rate of €2.14 per hour, up to 45 hours per week.
The Government is committed to ensuring access to affordable, quality early learning and care (ELC) and school-age childcare (SAC), with an investment of €1.48bn in the 2026 budget. This funding will allow the Department to build on recent progress in the gradual reduction of fees for parents, while also supporting supply and the quality of provision. New caps on maximum fees came into effect in September 2025 for all services in Core Funding, building on a range of enhancements to the National Childcare Scheme and Core Funding in recent years, reducing fees to parents.
Fee caps on all Partner Services represent the latest progression in the phased development of the Core Funding fee management system, with further improvements planned for the years ahead.
The landmark investment through Budget 2026 includes €20.6 million in brand new funding for a full programme year to support providers in adhering to the fee management conditions, including reductions in the maximum fee caps in Year 5.
More broadly, the Government has committed to reduce monthly fees to €200 over its lifetime. The steps in achieving this ambition over the coming years will be set out in the Action Plan on Accessible, High Quality, Affordable Early Learning and Care and School-Age Childcare, which the Department is continuing to develop. In line with the commitment in the Programme for Government, the Action Plan will be informed by a broad consultation process.
