Core Funding remains open year-round to applicants, and services are welcome to apply throughout the year.
The majority of Core Funding is distributed to services via the base rate, which is based on a service’s staffed capacity.
Under the Core Funding Partner Service Funding Agreement, for Partner Services who submitted their 2025/2026 Core Funding Application on or before 31 August 2025, their base rate will cap at their approved August Review and Confirm (i.e. the process, which occurs four times throughout the programme year including August of the preceding summer, whereby the Partner Service must review their Service Profile and Core Funding Application on the Hive).
For Partner Services who submitted their Core Funding Application from 1 September 2025 onwards for 2025/2026 programme year, they will not be required to complete the August Review and Confirm window, and their base rate value will cap on the approval of their Core Funding Application.
A Partner Service’s base rate may fluctuate throughout the programme year, but no Partner Service will be able to increase their base rate funding allocations above this highest capped value amount.
However, Partner Services, except childminders, cannot fall below the minimum base rate allocation of €14,400. All Partner Services delivering centre-based provision, regardless of the size of their service, will receive at least this minimum base rate allocation. This minimum base rate does not apply to the Graduate Premiums or Staff Funding Additional Contribution, which may still increase a Partner Service’s total allocation beyond this minimum base rate allocation and will not impact on whether a Partner Service qualifies for the minimum allocation.
The Graduate Premiums and the Staff Funding Additional Contribution provide additional avenues of Core Funding income on top of the base rate. The values of these payments may increase (unlike the base rate) or decrease throughout the year, to reflect changes to a Partner Service’s staffed capacity.
The Graduate Premiums support graduates to be Lead Educators across early learning and care (ELC) settings and as Managers in ELC or combined ELC and school aged childcare (SAC) services. Graduate Premium values allocated to a Partner Service can increase under a number of circumstances, such as where a Partner Service hires a new staff member who is eligible to attract a Graduate Premium, or where eligible Lead Educators are assigned to eligible rooms for longer hours per week and/or more weeks per year.
The Staff Funding Additional Contribution was introduced in the current programme year and is an additional contribution that is allocated to Partner Services to support staff pay and conditions. Any update to the Core Funding Application in respect of minimum staffed capacity, hours per day, days per week, or weeks per year that a room operates in a Partner Service may result in an increase, or decrease, to the allocation of the Staff Funding Additional Contribution payable to the Partner Service throughout the year. A Partner Service’s Staff Funding Additional Contribution allocation can increase under several conditions, including where a Partner Service increases their staffed capacity or where a Partner Service increases the annual hours that the staffed capacity is available for their service.
Furthermore, Partner Services can see increased income through increases to State funding, specifically increases to Core Funding which have been achieved in successive budgets since the introduction of the scheme. Another avenue for Partner Services to see increased income is the fee management rules around proportionality, whereby changes in provision must result in proportionate changes in fees charged, e.g. where a Partner Service increases the level of services offered, a higher fee can be charged for this, but the higher fee must be in direct proportion to the increase. Services’ incomes may also increase if they experience increased demand for their existing service which would give rise to both increased income from parents and subsidies as appropriate. The current guidelines on Fee Management under Core Funding can be found on the funding model website.
In addition to financial support, participation in Core Funding unlocks additional supports for services to access, including opportunities to apply for capital grants through the Department. The Building Blocks Capital Programme is designed to support ELC services to expand their existing facilities by creating additional, full time, early learning and care spaces.
The most recent scheme, the Building Blocks Extension Grant Scheme, aims to deliver additional capacity in the sector by supporting existing early learning and childcare services to undertake physical extensions to existing premises, or to purchase or construct new premises. The scheme was open to Core Funding Partner Services only. The Building Blocks Extension Grant Scheme was launched in late 2024 and the closing date for applications was 30th January 2025. Whilst this scheme is now underway, 2026 will see the launch of a further iteration of Building Blocks. Officials in the Department are currently examining options and detailed specifications for this scheme, and I expect to announce details in the coming months.
I was delighted to announce increased investment in Core Funding in Budget 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 €480 million. That is an additional €87.6 million on the current full year allocation, or a 22% increase.
The Budget 2026 allocation will facilitate:
- Natural capacity growth of 4.2% across the sector.
- Additional capacity growth created by the new Building Blocks grants.
- Support for providers in adhering to the fee management conditions including the continued fee freeze and reductions to the maximum fee caps in the 2026/2027 programme year.
- Support for improved pay for early years educators and school-age childcare practitioners with implementation of new 2025 Employment Regulation Orders, with further increases in pay to be supported through enhancement in year 5 of the scheme.
Full details of Core Funding 2026/2027 will be made available to the sector in 2026.