Dáil Éireann Debate, Tuesday - 2 December 2025
501. Deputy Cathy Bennett asked the Minister for Children, Disability and Equality if consideration will be given to opening applications for Core Funding early, as some childcare providers who have not increased their fees for a number of years are struggling to remain open; and if she will make a statement on the matter. [67978/25]
View answerCore Funding has increased annually, starting at €259 million in 2022 of which €210.8 million was entirely new funding to the sector, and now exceeding €390 million for the current and fourth year of the scheme. This is an increase of over 50% since the scheme began in September 2022. The additional funding is supporting further capacity growth, the maintenance of a fee management system to benefit families and significant improvements to pay and conditions in this valued sector.
The base rates in Core Funding have been developed using the various components associated with the cost of delivery of service provision such as: staff pay and conditions, including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions; administrative staff/time and non-staff overhead costs. These components have been factored into the calculation of the budget for Core Funding since the scheme began in 2022.
Although the cost of delivery components such as improvements to staff pay have been used to derive the base rates, the eligible areas of expenditure of the Core Funding grant are much broader. Partner Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlined in the Funding Agreement.
There will be no further increases to the Core Funding allocation for the current programme year, which finishes in August 2026. However, Minister Foley announced further investment in Core Funding in Budget 2026 which will take effect from September 2026. The additional funding being made available in 2026 will see the allocation for Core Funding in the next programme year which begins in September 2026 increase to almost €437 million. That is an additional €44 million on the current full year allocation, or an 11% increase. This increased investment will support the sustainability of the sector while maintaining Core Funding affordability measures for families. Full details of Core Funding 2026/2027 will be made available to the sector in 2026.
In addition to the increased level of Core Funding for year 4 of the scheme and signalled in Budget 2026, there are wider financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed while remaining within Core Funding.
The Department offers Sustainability Funding to services where issue/s have been identified through the Case Management process that have the potential to have serious consequences for their viability. As part of the Case Management process, in which local City or County Childcare Committees (CCCs) 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 from occurring in first instance, and any service seeking these supports should contact their City or County Childcare Committee.
