Dáil Éireann Debate, Tuesday - 13 January 2026
1914. Deputy Cathy Bennett asked the Minister for Children, Disability and Equality if she acknowledges that core funding provided to the early learning sector will not cover auto enrolment in the pension scheme from January 2026; if this additional cost will be included in core funding for the early learning sector; and if she will make a statement on the matter. [74433/25]
View answerAs I have confirmed to the Deputy in a previous Parliamentary Question, there will be no further increases to the Core Funding allocation for the current programme year, which finishes in August 2026. Nonetheless, under the Core Funding Partner Service Funding Agreement, Partner Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlined in the Funding Agreement.
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.
Approved areas of expenditure include:
• Costs relating to staffing of Partner Services in the provision of early learning and childcare, (including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions);
• Costs of staff/owner participation in Continuing Professional Development relating to early learning and childcare including cost of cover for absence due to such participation;
• Costs relating to the administration of the Partner Service including the administration of schemes funded by the Department;
• Overheads pertaining to running of the early learning and childcare service including rent, rates, utilities and insurance, and;
• Any other operational costs, excluding capital costs, which may reasonably be asserted to enhance the quality of early learning and childcare service provision.
Therefore, Partner Services are at liberty to use their existing Core Funding allocation towards the auto-enrolment pension scheme prior to the start of the next programme year in September 2026, when new funding will be made available.
The additional funding being made available in 2026 will see the allocation for Core Funding in the next programme year (September 2026 – August 2027) increase to over €480 million. That is an additional €87.6 million on the current full year allocation, or a 22% increase.
This is an unprecedented level of investment and will allow for increased support for the sector in the face of rising operational costs. Full details of Core Funding 2026/2027 will be made available to the sector in 2026.
The Department is supporting the roll-out and implementation of MyFutureFund through sector-specific communications in collaboration with the Department of Social Protection. MyFutureFund is an auto-enrolment retirement savings system aimed at helping an estimated 750,000 workers in Ireland who do not have a pension being paid through payroll to begin saving for their future.
In addition to the increased level of Core Funding for year 4 of the scheme and 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 sustainability fund for service providers is a support mechanism introduced to ensure the stability and viability of early learning and childcare services for those participating in the Core Funding model. The fund is accessed through a collaborative process involving the service, their local City/County Childcare Committee (CCC), and Pobal, who assess financial eligibility and need.
Once a service engages with their local CCC they will be able to avail of sustainability supports through the case management process. As part of the Case Management process, City or County Childcare Committees (CCC) assist services with issues and difficulties that arise. This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, financial support, as well as more specialised advice and support appropriate to individual circumstances.
The Department would encourage any service experiencing financial difficulty and who would like support to contact their CCC to access case management supports. Contact details for the CCCs can be found at [City and County Childcare Committees].
