State investment in early learning and childcare will be €1.37 billion in 2025, an increase of 115% over since 2020.
The majority of this funding is allocated through Together for Better, the funding model for early learning and childcare. This brings together the ECCE programme, the Access and Inclusion Model (AIM), Equal Start, the National Childcare Scheme (NCS) and Core Funding to form an interlocking and integrated system of funding, which is designed to ensure progress on the main goals of early learning and childcare policy.
The ECCE programme is a universal programme, available free of charge to all children for up to two years before starting primary school, on a part-time basis (3 hours per day, 38 weeks per year). With 96% of children taking part, it is nearly universal in its reach, providing valuable early learning and play experiences in early childhood for nearly all children, regardless of social background.
To help realise the universal ambition of the ECCE programme, AIM was introduced in 2016, providing both universal and targeted supports to facilitate access, to and participation in, the programme for children with a disability. Since September 2024, ECCE-age children can benefit from AIM supports outside of ECCE programme hours – in term and out.
Similar to AIM, Equal Start was introduced in September 2024 providing both universal and targeted measures to support access to, and participation in, early learning and childcare for children from disadvantaged backgrounds. The NCS, introduced in 2019, complements the ECCE programme, providing subsidies to reduce the costs to parents for children to participate in early learning and care outside the ECCE programme and in school-age childcare. The NCS combines both universal and targeted measures:
• A universal subsidy – which increased to €2.14 per hour in September 2024 – significantly reduces net costs for parents.
• An income-assessed subsidy, which provides higher rates of subsidy to families with lower incomes. Income-assessed subsidies are available to families with reckonable income below €60,000 per year.
The NCS also provides free access to early learning and childcare. In particular, the scheme includes arrangements for specified target groups to receive free access, where referred by a sponsor body. Finally, Core Funding was introduced in 2022 and is designed to meet the combined objectives of:
• Improved affordability for parents by ensuring that fees do not increase;
• Improved accessibility for children by ensuring providers offer the ECCE programme and/or the NCS, including sponsored arrangements; and
• Improved quality through, inter alia, better pay and conditions for the workforce by supporting agreement on an Employment Regulation Orders through the Joint Labour Committee.
When first introduced in 2022, Core Funding had an annual allocation of €259 million; €210.8 million of which was entirely new funding to the sector. That annual allocation has increased each year since and has exceeded €390 million for the current fourth year of the Scheme. This represents an increase of over 50% in Core Funding in three years.
Since its introduction, Core Funding has supported:
• The introduction of a fee freeze at September 2021 levels, which has ensured increases to NCS subsidies were fully felt by parents.
• The introduction of three Employment Regulation Orders for the Early Years Services Sector providing minimum hourly rates of pay for early years educators and SAC practitioners, which resulted in improved pay for an estimated 73% of those working in the sector in September 2022, for an estimated 53% of those working in the sector in June 2024 and an estimated 67% of staff working in the sector in October 2025.
• Significant growth in capacity for cohorts and in areas where there is undersupply, allowing greater access for children and their families.
Further investment in Core Funding was announced in Budget 2026. The additional funding will see the allocation for Core Funding in the next programme year, which begins in September 2026, increase to over €480 million. That is an additional €87.6 million on the current full year allocation, or a 22% increase.
The Government is also supporting the expansion of capacity through capital funding. The Building Blocks Extension Grant Scheme is designed to increase capacity in the 1–3-year-old, pre–Early Childhood Care and Education, age range for full day care. Core Funding Partner Services could apply for capital funding to physically extend their premises or to construct or purchase new premises. The Scheme will deliver up to 1,500 full-day care places for 1- to 3-year-olds.
I recently announced €135 million of capital investment over the coming five years for State-led services to provide high-quality, accessible early learning and childcare. The process will begin in 2026 with investment in buildings in what will be a ground-breaking initiative. There will be a particular focus in the new state-led facilities on providing places for 1-3 year old children because this is where the need is greatest.
Finally the Department provides a range of supports for individuals and organisations that wish to explore establishing an early learning and childcare service. In particular the Department funds the national network of City and County Childcare Committees (CCCs). Committees employ Development Officers who will provide support and information on a range of relevant matters including:
• Start up business support including information on DCDE Funding programmes.
• Tusla Registration
• Regulatory Guidance
• Inspection Support
CCC contact details can be found on: www.gov.ie - City and County Childcare Committees: www.gov.ie/en/publication/52b71-support-for-parents-city-and-county-childcare-committees/.