Dáil Éireann Debate, Thursday - 20 November 2025
551. Deputy Michael Murphy asked the Minister for Children, Disability and Equality if she will address concerns that the current funding model does not adequately reflect the higher staffing ratios and operating costs associated with infant and wobbler care; and if she will consider adjusting the funding to prevent further contraction of places in this age cohort; and if she will make a statement on the matter. [65055/25]
Amharc ar fhreagraThe majority of Core Funding is distributed to services via the base rate, which is based on a service’s staffed capacity – the opening hours, operating weeks, the age group for whom services are provided, and the number of places available.
Unlike other funding streams within the Department, a place does not need to be filled for a service to receive funding, but the service does need to have the necessary staffing in place to meet the regulatory adult to child ratios.
Table 1: Hourly rates payable through the Base Rate from 1 September 2025
|
Age range |
Adult to Child ratio |
Value per place per hour offered |
|
Full and Part time |
|
|
|
0 to 1 years of age |
1:3 |
€1.90 |
|
1 to 2 years of age |
1:5 |
€1.28 |
|
2 to 3 years of age |
1:5 |
€1.10 |
|
3 to 6 years of age |
1:8 |
€0.80 |
|
Sessional |
|
|
|
0 to 1 years of age |
1:3 |
€1.90 |
|
1 to 2.5 years of age |
1:5 |
€1.28 |
|
2.5 to 6 years of age |
1:11 |
€0.76 |
|
School Age |
|
|
|
4 to 15 years of age |
1:12 |
€0.59 |
Since its introduction in 2022, Core Funding has provided increased levels of funding to services delivering care to younger children, to support these services to meet the higher operational costs created by the higher ratios set out in regulations, and to incentivise increased capacity for babies and younger children under three.
This year, a new element of the Core Funding calculation was introduced to distribute the new funding ring-fenced for improvements to staff pay and conditions – called the Staff Funding Additional Contribution.
The calculation of the Staff Funding Additional Contribution per service is linked to the staffing requirements set out by regulations, which means that the allocation offered is reflective of the higher staffing requirements for younger ages. It also reflects that the funding that has been available for graduate-led provision for the previous three years can and should be facilitating higher rates of pay for graduates. It will be calculated as:
Minimum staffing hours minus Graduate Lead Educator Premium hours multiplied by a maximum of €1.14 per eligible hour
This funding is ring-fenced for staff pay and conditions and can only be used for this purpose. The release of the funding is contingent on the establishment of updated Employment Regulation Orders by the independent Joint Labour Committee.
It is important to note that although there are various elements used to derive the grants for individual services, the eligible areas of expenditure of the Core Funding grant are much broader. Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlined in the Funding Agreement. The Staff Funding Additional Contribution is the only element of the grant which currently has a prescribed use.
I was delighted to announce further investment in Core Funding in Budget 2026. The additional funding being made available in 2026 will see the allocation for Core Funding in the next programme year which begins in September 2026 increase to €436.94 million. That is an additional €44 million on the current full year allocation.
This increased investment will allow for further increases in capacity across the sector, and will support Partner Services in adhering to the fee management conditions of the grant including reductions in the maximum fee caps from September 2026. This will guarantee that Core Funding’s monetary protections will continue to be passed on to families while ensuring sustainability and stability for the sector.
In addition to the increased level of Core Funding, there are wider financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed while remaining within Core Funding.
Once a service engages with their local City/County Childcare Committee, they will be able to avail of supports through the case management process, this support can take the form of general operational supports as well as more specialised advice and support appropriate to the individual circumstances of a service.
The Department also offers Sustainability Funding to services where issue/s have been identified through the Case Management process that have the potential to have serious consequences for their viability.
Sustainability Funding is intended to prevent significant issues that threaten the viability of a service from occurring in first instance, and any service seeking these supports should contact their City or County Childcare Committee.
I am happy to see that early learning and childcare capacity is increasing. Data from the Annual Early Years Sector Profile 2023/24 shows that the estimated number of enrolments increased by approximately 19% from the 2021/22 programme year. Core Funding application data shows that between Year 1 and Year 3 of the scheme, annual place hours increased by over 15%. The Tusla register of services demonstrates a net increase in the numbers of registered early learning and childcare services in 2024.
However, it appears that demand for early learning and childcare remains higher than available supply, particularly for younger children and in certain parts of the country.
Demand for early learning and childcare beyond sessional pre-school provision is highly elastic and shaped very substantially by families' individual composition, circumstances, and preferences; employment patterns and income; and the price and availability of services.
A Forward Planning and Delivery Unit in this Department is progressing an important programme of work focused on identifying areas of need, forecasting demand, and planning for the delivery public supply within the early learning and childcare sector where required.
A forward planning model is in development which will be central to the Department's plans to achieve the policy goals set out in the Programme for Government to build an affordable, high-quality, accessible early childhood education and care system, with State-led facilities adding capacity.
The Department continues to support the ongoing development and resourcing of Core Funding which has given rise to a significant expansion of places since the scheme was first introduced.
The Government is also supporting the expansion of capacity through capital funding. The Building Blocks Extension Grant Scheme is designed to increase capacity in the 1–3-year-old, pre–Early Childhood Care and Education, age range for full day care. Core Funding Partner Services could apply for capital funding to physically extend their premises or to construct or purchase new premises.
Capital funding allocated to the early learning and childcare sector under the National Development Plan has enabled significant investment in early learning and childcare. This allows existing Core Funding Partner Services to extend their existing premises or, in the case of community services, to construct or purchase new premises. The Scheme will deliver up to 1,500 full-day care places for 1- to 3-year-olds. The shortlisted services are now working with the Chief State Solicitor’s Office in completing the legal formalities of the scheme. I look forward to seeing these projects progress over the coming months.
The Programme for Government commits for the first time to provide capital investment to build or purchase state-owned early learning and childcare facilities, to create additional capacity in areas where unmet need exists. State ownership of facilities is a very substantial and significant development and offers the potential for much greater scope to influence the nature and volume of provision available and to ensure better alignment with estimated demand. This work will be supported through capital investment under the revised National Development Plan.
