Written Answers Nos. 371-372
371. Deputy Roderic O'Gorman asked the Minister for Children, Disability and Equality if her Department intends to operate a fee increase assessment process for core funding for the programme year 2026/2027; if not, the mechanism by which it is intended to replace this process; and if she will make a statement on the matter. [52557/26]
View answerCore Funding is a supply-side grant to early learning and childcare providers towards their operating costs, designed to promote affordability for parents and sustainability for providers through increased funding to the sector.
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 beginning in 2022.
Further investment in Core Funding was announced in Budget 2026. The additional funding being made available will see the allocation for Core Funding in the next programme year, which starts in September 2026, increase to over €480 million. This represents an increase of over €90 million, or 23%, on the current full year allocation. This included €21 million in funding dedicated to support Partner Services in adhering to the Core Funding fee management conditions from September 2026.
Adherence to the Core Funding fee management system is a primary condition of receiving the significant State funding that is available through the scheme. The fee management system requires compliance with the fee freeze and maximum fee caps. The fee freeze meant that in return for funding through the scheme, services that sign up for Core Funding (Partner Services) agree not to raise their fees above what was charged to parents on 30 September 2021. This is to ensure that the State’s significant investment through the Scheme is not absorbed by unnecessary fee increases.
In addition to the year-on-year increases in the Core Funding allocation, the Department has 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.
In 2024 in Programme Year 3, the Department opened applications for providers whose fees had been frozen at historically low levels. In the Fee Increase Assessment process, Core Funding Partner Services who were charging fees below the county average were eligible to apply to be assessed for a fee increase. This process was introduced to ensure that services who have fees which may not be sustainable were given the opportunity to apply for a fee increase. This process closed for applications on 29 November 2024.
Under this Fee Increase Assessment process, services charging low fees could apply to increase their fees up to an approved level, subject to a unit-cost analysis of their business by the Department. Where a service was approved for a sanctioned fee increase, it was permitted to increase its fees to an agreed level while continuing to participate in Core Funding.
The Core Funding Partner Service Agreement contains provisions for a new Fee Increase Assessment-type exercise for the current programme year, subject to Ministerial discretion. The details of this undertaking are being developed by the Department, with the aim of identifying and supporting those services whose fees remain at very low levels, while also being careful to manage the potential out-of-pocket expenses to families of this policy.
Partner Services facing sustainability concerns can also avail of supports through the Department’s established case management process, through which local City and County Childcare Committees and Pobal work together to assess and provide support including financial support to services experiencing difficulties.
All services are encouraged to avail of these supports if they are facing difficulties with the sustainability of their business. Contact details for the CCCs can be found at the www.gov.ie/en/department-of-children-disability-and-equality/campaigns/city-and-county-childcare-committees/. page on gov.ie.
372. Deputy Malcolm Byrne asked the Minister for Children, Disability and Equality the progress on support measures being provided to persons with Down syndrome and their families. [53009/26]
View answerThe Specialist Disability Budget supports a range of services funded through the HSE and delivered by Section 38 and Section 39 organisations, as well as the HSE. Access to services is based on an individual’s needs rather than on their diagnosis.
As this question refers to service matters, I have asked the Health Service Executive (HSE) to respond to the Deputy directly, as soon as possible.
