Dáil Éireann Debate, Thursday - 19 February 2026
122. Deputy Edward Timmins asked the Minister for Children, Disability and Equality to review the childcare funding models for setting of fee rates in Core Funding and the ECCE programme; and if she will make a statement on the matter. [13371/26]
Amharc ar fhreagraThe Early Childhood Care and Education (ECCE) Programme is a free universal programme available to all children within the eligible age range. All ECCE providers in contract with the Department must offer ECCE for 3 hours per day, 5 days per week over a 38-week period in return for the ECCE subsidy
ECCE providers may only charge for a small number of approved optional extra(s) from a prescribed list. Where a parent does not choose any of the approved optional extras, their child must be provided with the full ECCE Programme.
Since Core Funding was introduced, its effectiveness has been subject to ongoing assessment, which has facilitated the iterative evolution of this scheme.
An evaluation of the first year of Core Funding and the development of an evaluation framework for Core Funding is currently underway. This project will examine the early implementation of Core Funding and make recommendations for future evaluations of the grant. Findings from the project are expected in the coming months.
This project is being undertaken by Irish Government Economic and Evaluation Service (IGEES) policy analysts working in the Research and Evaluation Unit of my Department.
IGEES is an integrated cross-government service established in 2012 with the objective of enhancing the role of economics and value for money analysis in public policy making. It is part of the Department of Public Expenditure, NDP Delivery, and Reform.
It is envisaged that the future evaluations will have a broader scope and will be governed by a Steering Group. The terms of reference for future evaluations will be informed by the recommendations arising from the evaluation of the first year of the grant.
A key condition of receiving the significant State funding available through the Core Funding Scheme requires that Partner Services adhere to the Core Funding fee management system, including a freeze on fees at 2021 levels and fee caps.
Fee caps on all Partner Services, which were introduced in September 2025, represent the latest progression in the phased development of the Core Funding fee management system.
The fee caps are facilitated by the Common Fee Structure, which was introduced in September 2024 and organises care into six Fee Bands by hours of weekly provision, from Band A (less than 10 hours) up to Band F (50 hours or more).
€20.6 million in brand new full-year funding was secured in Budget 2026 to support providers in adhering to Core Funding fee management conditions, including reductions in the maximum fee caps in the 2026/2027 programme year.
The Department is fully committed to balancing affordability for parents and viability for businesses through Core Funding.
Work is currently underway in the Department to finalise policy for Core Funding programme year 2026/2027.
