Dáil Éireann Debate, Thursday - 19 February 2026
182. Deputy Brian Brennan asked the Minister for Children, Disability and Equality to outline any measures to support early years service providers to meet the increased costs of operating; and if she will make a statement on the matter. [13375/26]
View answerThe Department supports the ongoing development of existing and new services in the sector through its range of funding schemes and support infrastructure including City/County Childcare Committees.
In particular, Core Funding offers supply-side funding to services to support them with their operational costs. Core Funding operates alongside all other early learning and childcare programmes and constitutes additional income to services on top of these programmes (and parental fees) towards their operating costs.
When first introduced in 2022, Core Funding had an annual allocation of €259 million, of which €210.8 million was entirely new funding to the sector.
That annual allocation has increased each year since and exceeds €390 million for the fourth and current year of Core Funding. This represents an increase of over 50% in Core Funding in three years. The additional funding is supporting further capacity growth, the maintenance of a fee management system to benefit families and significant improvements to pay and conditions in this valued sector.
The allocation for Core Funding for year 5 of the Scheme will increase again by 22% to over €480 million. This allows us to maintain fees at 2021 levels in Year 5, support further improvements in pay for staff, and support services in adhering to reduced maximum fee caps from September 2026 – ensuring sustainability and stability for the sector.
In addition to increased funding, the Department has also made changes to improve the sustainability of providers through, for example, targeted measures for small and sessional services, and a fee increase assessment and approval process for services with fees frozen at unsustainably low rates.
Participation in Core Funding also unlocks additional supports for services, including access to support for services caring for concentrated numbers of children facing disadvantage through Equal Start, and opportunities to apply for capital grants through the Department.
Core Funding 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.
The Department will explore further changes for year 5 of the scheme – from September 2026 - based on the operation of year 4 of the Scheme as well as stakeholder input and income and cost data from providers.
The Department will also continue to oversee the Case Management process through which local City/County Childcare Committees and Pobal work together to assess and provide support to early learning and care services experiencing difficulties.
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. Any service experiencing financial difficulty and who would like support should contact their CCC to access case management supports.
I am confident in the adequacy of Core Funding in supporting the sector to meet rising costs.
