Dáil Éireann Debate, Tuesday - 2 December 2025
508. Deputy Ged Nash asked the Minister for Children, Disability and Equality the plans for any reforms to ensure that rural based early years services remain within the Core Funding system; and if she will make a statement on the matter. [68105/25]
Amharc ar fhreagraCore Funding is a supply-side grant to providers designed to support quality, sustainability, and affordability for parents through associated conditions in relation to fee control and cost transparency.
Core Funding operates alongside the National Childcare Scheme, the Early Childhood Care and Education programme and Equal Start and constitutes additional income for providers on top of funding for these schemes, as well as income from parental fees.
As of 3 November 2025, there were 5,035 services listed as being open on the Early Years Platform, of which 177 (4%) had left Core Funding at one point over the lifetime of the scheme to this date and continue to operate outside of this scheme. A further 415 services (8%) had left Core Funding at one point over the lifetime of the scheme to this date but later rejoined and were signed up to the fourth year of the scheme on this date. The overwhelming majority of services, 4,157 or 83%, have continued to participate in Core Funding from the date on which they first signed up for the scheme.
The table below provides a breakdown of the services that left Core Funding in each programme year by county division. Some services may have left and rejoined multiple times across the three years, and therefore the figures cannot be aggregated across programme years from the breakdown below.
|
COUNTY DIVISION |
Year 1 (2022/2023) |
Year 2 (2023/2024) |
Year 3 (2024/2025) |
Year 4 (2025/2026) |
|
Cork City |
2 |
4 |
5 |
0 |
|
County Carlow |
0 |
0 |
0 |
0 |
|
County Cavan |
2 |
4 |
4 |
0 |
|
County Clare |
5 |
3 |
4 |
0 |
|
County Cork |
12 |
15 |
14 |
0 |
|
County Donegal |
12 |
9 |
17 |
0 |
|
County Galway |
24 |
30 |
16 |
1 |
|
County Kerry |
5 |
9 |
5 |
0 |
|
County Kildare |
11 |
11 |
7 |
0 |
|
County Kilkenny |
0 |
2 |
0 |
0 |
|
County Laois |
5 |
3 |
2 |
0 |
|
County Leitrim |
1 |
0 |
0 |
0 |
|
County Limerick |
6 |
11 |
2 |
0 |
|
County Longford |
0 |
1 |
1 |
0 |
|
County Louth |
6 |
2 |
3 |
0 |
|
County Mayo |
7 |
12 |
0 |
0 |
|
County Meath |
4 |
13 |
16 |
0 |
|
County Monaghan |
0 |
4 |
1 |
0 |
|
County Offaly |
7 |
2 |
2 |
0 |
|
County Roscommon |
1 |
4 |
2 |
0 |
|
County Sligo |
0 |
5 |
5 |
0 |
|
County Tipperary |
12 |
14 |
3 |
0 |
|
County Waterford |
5 |
2 |
2 |
0 |
|
County Westmeath |
1 |
1 |
1 |
0 |
|
County Wexford |
4 |
11 |
6 |
2 |
|
County Wicklow |
2 |
12 |
3 |
0 |
|
Dublin City |
17 |
56 |
28 |
0 |
|
Dun Laoghaire-Rathdown |
8 |
10 |
8 |
0 |
|
Fingal |
7 |
29 |
9 |
0 |
|
South Dublin |
9 |
17 |
8 |
0 |
|
TOTAL |
175 |
296 |
174 |
3 |
It should be noted that of the services tabulated above, over 70% of services had returned to participate in Core Funding as of 3 November 2025.
When first introduced in 2022, Core Funding brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in first year of the scheme. Investment in Core Funding has continued to increase year-on-year, rising to over €390 million for the fourth, and current, programme year.
Within the Core Funding allocation for the current programme year, €45 million has been ring-fenced to support employers in meeting the costs of further increases to the minimum rates of pay across the sector, as set out under the updated Employment Regulation Orders.
The Department has also made changes to improve the sustainability of providers through, for example, the targeted measures for small and sessional services and a fee increase assessment and approval process for services with fees frozen at unsustainably low rates. Some of the increased measures include:
• The Base Rates for all age groups increasing, with larger increases in funding for places offered to children under the age of three. In short, all providers currently signed up to Core Funding will receive a higher payment going forward to support their day-to-day costs.
• The flat rate for services registered on the Tusla Early Years Register as sessional-only increased from €4,075 to €5,000. This will strengthen supports to sessional-only services, who typically operate for shorter hours per week and fewer weeks per year.
• The minimum Base Rate allocation increased from €8,150 to €14,000. This is the minimum amount of funding a centre-based service will receive through their Base Rate. This ensures a minimum guaranteed income for services. This increase supports smaller services and services operating in rural areas, who may be prone to fluctuations in demand.
Programme Year 5 (2026/2027) will see further investment in Core Funding, with the budget increasing by nearly 11% on the current year 4 allocation. This increases will translate to a full year allocation of at least €436.94 million for Year 5 of Core Funding.
There are financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed through their local City/County Childcare Committee while remaining within Core Funding.
I understand services in isolated rural areas may face challenges due to small local population. As a part of the Case Management process, financial assistance under sustainability funding may be granted in respect of the ongoing operational expenditure and liabilities of a service facing and unable to deal with these challenges. This funding is designed to support the continued provision of ELC/SAC Services Providers in rural communities and encourage efficiency by providing governance and business model supports to support the long-term sustainability and safeguard invest.
As part of the Case Management process, City or County Childcare Committees assist services with issues and difficulties that arise. The County Childcare Committees may refer Core Funding-partner services facing difficulties to Pobal and the Department to be considered for Sustainability Funding.
I would encourage any service experiencing financial difficulty and who would like support to contact their County Childcare Committee to access case management supports. Contact details for the County Childcare Committee can be found online at: https://www.gov.ie/en/department-of-children-disability-and-equality/campaigns/city-and-county-childcare-committees/
