The introduction of Core Funding in 2022 brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, of which €210.8 million was entirely new funding. This funding, which increased by 11% (to €287 million) in year 2, has increased again by another 15% in year 3 (to €331 million).
This significant further investment for the third programme year allowed for increased measures including;
• The Base Rates for all age groups increased, with larger increases in funding increases for places offered to children under the age of three.
• The flat rate for services registered on the Tusla Early Years Register as sessional only has increased from €4,075 to €5,000.
• The minimum Base Rate allocation has increased from €8,150 to €14,000. This is the minimum amount of funding a centre-based service (not childminders) will receive through their Base Rate and ensures a minimum guaranteed income for services.
• The maximum Base Rate allocation is decreasing from €600,000 to €500,000.
For year 3 of Core Funding, my Department introduced a new Fee Increase Assessment and Approval Process whereby a Partner Service meeting certain criteria could apply to increase their fees up to an approved level. This process closed for applications on 29 November 2024. My Department also introduced a cap on fees for services joining Core Funding for the first time this year. A fee cap will apply to all Partner Services from September 2025. These new developments are in line with Recommendations 21 and 22 in Partnership for the Public Good.
My Department regularly engages with the sector through the Early Learning and Childcare Stakeholder Forum (ELCSF) . Matters relevant to the sector are discussed, including any developments to the Core Funding Scheme.
Further increases in year four of the Scheme, announced in Budget 2025, which will see the total allocation increase to over €390 million. Further details on the fourth programme year will be announced to services in advance of the application opening.
Core Funding also allows for services to access other supports and benefits offered by my Department including the Building Blocks capital grant scheme, and Equal start which aims to support access and participation in early learning and care (ELC) and school-age childcare (SAC) for children and their families who experience disadvantage.
In addition, Core Funding Partner Services can also avail of case management supports if they experience viability concerns. This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, financial support for partner services, as well as more specialised advice and support appropriate to individual circumstances.
Core Funding Partner services can avail of many supports which are not available to services outside of the scheme, and I am committed to increasing the direct financial incentives of Core Funding, as well as ensuring the suite of other supports available to Partner Services continue to be developed and remain attractive.
Currently, 92% of eligible services have signed up to Core Funding year. This equates to over 4,400 services, and means that more services have opted into the scheme this year, than in programme years one or two.
My Department will continue to engage with the sector, and continue to develop the scheme so that it can continue to see the high uptake levels it has seen this year, and indeed since it was launched in 2022.