Dáil Éireann Debate, Tuesday - 22 October 2024
667. Deputy Niamh Smyth asked the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the money allocated to core funding in 2022, 2023, 2024 and 2025; and if he will make a statement on the matter. [43286/24]
Amharc ar fhreagraThe introduction of Core Funding in September 2022 brought a significant increase in investment for the sector.
In 2022 Core Funding had an outturn of €80.4 million. Core Funding was introduced in September 2022. This includes the two weeks of Interim Funding which was paid to the sector. This Interim funding was introduced to support providers to transition from the EWSS to the new Core Funding stream.
In 2023 Core Funding had an outturn of €257.06 million, reflecting the first full year of expenditure under the scheme and increases to the scheme from September 2023. €4 million of the original allocation of €259 million was to remove the 3 year experience rule for graduate premiums contingent on updated Employment Regulation Orders reflecting this change. Due to delays in the establishment of these EROs by the Joint Labour Committee the full €4 million allocated for this purpose was not released.
In 2024 €303.3 million was allocated to Core Funding. This includes increases to the rates within the scheme which took effect in September 2023. These increases support the maintenance of the fee freeze, increased income for all services and up to 6% capacity growth.
In 2025 a minimum of €338.2 million has been allocated to Core Funding. This includes increases to take effect from September 2025 that will support the delivery of a range of enhancements in Year 4 of the scheme, including increases in capacity of 3.5%, increased support for services with the costs of administration and the maintenance of fee management measures.
I secured a further €15 million in Budget 2025 specifically to support employers to meet the costs of further increases to the minimum rates of pay in the sector from September 2025. This €15 million translates into full year costs of €45 million for programme year 2025/2026 (September 2025 to August 2026). This allocation is conditional on EROs being negotiated by the independent Early Years Services Joint Labour Committee.
Combined, and contingent on the third successive Employment Regulation Orders, the Core Funding allocation will exceed €350 million in 2025.
