Cathy Bennett
Question:90. Deputy Cathy Bennett asked the Minister for Children, Disability and Equality her proposals to address the gap in levels of funding for childcare against the increased costs borne by providers. [47502/26]
View answerTuesday, 23 June 2026
Questions (90)
Written answers
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, and significant improvements to pay and conditions in this valued sector.
Within the Core Funding allocation for the 2025/26 programme year, €45 million has been ringfenced to support employers in meeting the costs of further increases to the minimum rates of pay in the sector, as set out under the Employment Regulation Orders.
This ringfenced allocation supports an average 10% increase to minimum hourly rates of pay for all roles outlined in the Employment Regulation Order that came into effect on 13 October 2025.
The allocation for Core Funding for year 5 of the Scheme will increase again by 23% to over €480 million. This allows us to support further improvements in pay for staff, and support services in adhering to reduced maximum fee caps from September 2026 and broader fee management conditions, including the fee freeze – ensuring sustainability and stability for the sector.
The base rates in Core Funding have been developed using the various components associated with the cost of delivery of service provision such as: staff pay and conditions (including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions); administrative staff/time, and non-staff overhead costs. These components have been factored into the calculation of the budget for Core Funding since the scheme began in 2022.
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 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.