The Department is fully committed to promoting affordability for parents through Core Funding. This is driven by the Core Funding fee management system, which includes fee caps and a freeze on fees at September 2021 levels. Adherence to the fee management system is a key condition of receiving the significant funding available through the Scheme.
Core Funding has seen consistent increased State investment to the sector year on year and will exceed €390 million in the current programme year (which commenced in September). This is an increase of over 18% on the 2024/25 allocation of €330 million and represents a 50% increase over the initial Core Funding allocation of €259 million secured in 2022.
Over 4,590 eligible services have signed up to Core Funding for the current programme year – the highest number of services in Core Funding at any point since the scheme was launched in 2022 – representing a take-up rate of over 93% of eligible services.
The continued development of fee caps, and the fee management system more broadly, forms part of a phased process of transformation founded in the recommendations made by the Expert Group in the 2021 report Partnership for the Public Good.
Management of fees through Core Funding is also one of the policy instruments that will work toward achieving the goal of reducing fees to €200 per month over the lifetime of this Government.
Fee caps in Core Funding are stepped down on a pro-rata basis in increments of €59, meaning there is a maximum amount a service can charge at each Fee Band, from €59 at Band A (less than 10 hours per week) up to €354 at Band F (50 hours or more per week). The pro-rated incremental fee caps are designed to ensure a balance between costs to parents and viability to Core Funding Partner Services. It should be noted that the average full day place falls in the middle of Band E – thus a service charging for exactly 50 hours of service is providing approximately 5.5 hours of service more than the average at Band E.
Fee caps on First-Time Partner Services, meaning services joining Core Funding for the first time in programme year 2024/2025, were first introduced in September 2024. This was followed by the introduction of fee caps for all Partner Services, beginning in September 2025.
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. Fees charged to a parent should be based on the hours that were agreed to between the parent and the service. As private businesses, Partner Services can choose the types of care that they offer to parents provided that they do not breach the fee cap or other Scheme rules.
Continued development of fee management measures is planned in the years ahead, with €20.6 million in brand new full-year funding was secured in Budget 2026 to support providers in adhering to Core Funding fee management conditions in the 2026/2027 programme year, including further reductions in the maximum fee caps.
This will guarantee that Core Funding’s monetary protections continue to be passed on to families while ensuring sustainability and stability for the sector.
Full details of Core Funding 2026/27, including new fee management measures, will be made available to the sector in 2026.
Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee (CCC) for assistance. For information, the Department has a list of all Core Funding Partner Services which is updated regularly on the Department's gov.ie website under How to Find a Partner Service: www.gov.ie/en/department-of-children-disability-and-equality/publications/how-to-find-a-partner-service/.
Fee Caps
