Dáil Éireann Debate, Tuesday - 12 May 2026
973. Deputy Barry Ward asked the Minister for Children, Disability and Equality the position regarding any support mechanisms in place to support families whose childcare facilities have withdrawn from the core funding model, specifically in relation to the knock-on price increase for childcare; and if she will make a statement on the matter. [34679/26]
Amharc ar fhreagraWhen first introduced in 2022, Core Funding had an annual allocation of €259 million, of which €210.8 million was entirely new funding to the sector.
That annual allocation has increased each year since and exceeds €390 million for year 4 of the Scheme, which started in September. This represents an increase of over 50% in Core Funding in three years.
The allocation for Core Funding for year 5 of the Scheme will increase again - by 23% to over €480 million. This will support a range of important priorities, including maintaining fees at 2021 levels in Year 5, supporting further improvements in pay to staff, and supporting services in adhering to fee management conditions – ensuring affordability for families and sustainability and stability for staff.
Uptake of Core Funding remains strong. As of 4 May 2026, there were 4,633 services signed up to the fourth year of Core Funding which represents 93% uptake by eligible services. This is the highest number of Partner Services in Core Funding at any point since the scheme was launched in 2022. I am encouraged by this rate of participation; it shows the vast majority of families will continue to benefit from the scheme’s fee management conditions.
I am aware that a small number of services have regrettably chosen to withdraw from Core Funding. The State is providing Core Funding to promote the interests of children and their families and workers in a privately delivered sector.
The Department, through the local Childcare Committees (CCCs), engages directly with any such service to highlight the benefits of staying in Core Funding, not only for their service but also for the families who avail of them. I remain hopeful that these providers may reconsider their decision.
Core Funding is a supply-side grant to early learning and childcare providers towards their operating costs. It is designed to promote affordability for parents and sustainability for providers through increased funding to the sector, paid on a consistent and equitable basis.
As Core Funding is an optional scheme, providers have the autonomy to withdraw from or choose not to participate in the scheme. Participation in Core Funding is optional, but it remains open to all Tulsa-registered providers, subject to their agreement to the terms and conditions of the Core Funding Agreement. It is a matter for providers to decide whether they wish to sign up to Core Funding and benefit from the significant financial supports it offers to providers and the certainty it gives to parents through the associated fee management measures.
The Department has a list of all Core Funding Partner Services which is updated regularly on the Department’s website under How to Find a Partner Service.
Regardless of whether the early learning and childcare service which their child attends is participating in Core Funding, both the Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS) are currently available to parents. The Local Childcare Committee can provide contact information for parents should they need help to secure alternative places. Parents/guardians can also use the following website to find Core Funding Partner Services in their area at https://www.ncs.gov.ie/en/childcare-search/ The National Childcare Scheme (NCS) provides financial support to help parents reduce the cost of early learning and childcare in the form of a subsidy paid directly to the childcare provider. Subsidies are available for children aged between 24 weeks and 15 years of age. The minimum rate available to all families in Ireland is €2.14 per hour, which is available for up to 45 weekly hours. Depending on the child's age and the family's income, an additional income assessed subsidy may be available to provide additional support.
Effective September 2026, the NCS income thresholds will increase significantly, expanding eligibility for subsidies. The lower income threshold rises to €34,000 (from €26,000), allowing more families to access maximum subsidies, while the upper threshold increases to €68,000 (from €60,000). This also means that most families currently receiving an income assessed award will see an increase in their subsidy due to positive tapering effects.
All Tusla registered providers are eligible to offer the National Childcare Scheme and avail of the supports the subsidy provides. Services are eligible for the same NCS supports irrespective of if they are a Partner Service with Core Funding or not.
