Improving access to quality and affordable Early Learning and Care and School Age Childcare is a key priority of Government.
Early learning and childcare capacity is increasing. Data from the Annual Early Years Sector Profile 2024/25 shows that the estimated number of enrolments increased by approximately 25% from the 2021/22 programme year. However, it appears that demand remains higher than available supply in certain parts of the country, particularly for younger children.
The Department continues to support the ongoing development and resourcing of Core Funding which has given rise to a significant expansion of places since the scheme was first introduced. Core Funding, which is in its fourth programme year, funds services based on the number of places available.
This provides stability to services, and reduces the risk associated with opening a new service or expanding an already existing service. For the third programme year (2024/25), the allocation for Core Funding allowed for a 6% increase in capacity. Budget 2025 secured funding for the fourth programme year (2025/6) to facilitate a further 3.5% increase from September 2025. Budget 2026 has made provision for the fifth programme year (2026/7) for a further expansion in supply of 4.2%.
This increased investment will allow increases in the natural growth of the sector driven both by new services joining the sector and existing services offering more places and/or longer hours to families.
The total allocation for Core Funding in 2026/2027 programme year will increase to €436.54 million, an additional €43.90 million on the current full year allocation.
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 to 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.
Up to eight buildings will be selected for investment this year. The State-led initiative will provide thousands of places up to 2030. 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.
Although the Government is the primary funder of the sector, it is not the employer and cannot directly set wages or conditions.
The Joint Labour Committee is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in Employment Regulation Orders, and is independent in its functions.
The latest ERO came into effect in October 2025.
Outcomes from the Joint Labour Committee process are supported by Government through Core Funding. In this programme year 2025/26 Core Funding has increased by 6% to approximately €350 million with an additional €45 million in ring-fenced Core Funding provided to support services in meeting the increased cost of minimum pay rates in the sector.
I recently announced, as part of the launch of Shaping the Future: Early Years Action Plan in December, another allocation of up to €15m of ring-fenced funding from September 2026, which amounts up to €45m for the full programme year, to support service providers with costs associated with possible increases in minimum rates of pay negotiated via the independent Joint Labour Committee process.
Regarding waiting lists, there is no centralised waiting list for Early Learning and Childcare, each list is managed at service level. While waiting list data can be used to give an indication of demand, it should not be used as a measure of overall demand for Early Learning and Childcare places as it is vulnerable to overestimating the actual number of children requiring a place. An individual child may be on multiple waiting lists in different services and may remain on one or multiple service lists after taking up a place.
The most recently published Annual Early Years Sector Profile capacity data for the 2024/25 programme year indicated that the estimated enrolments for 1-3 year olds has continued to increase, with 40,410 estimated enrolments in 2025, a 12% increase on the 2021/22 Programme Year.
