Dáil Éireann Debate, Tuesday - 12 May 2026
978. Deputy Barry Ward asked the Minister for Children, Disability and Equality the position regarding the mediation mechanisms in place for childcare providers that are considering withdrawing from the core funding model; and if she will make a statement on the matter. [34684/26]
Amharc ar fhreagraI am aware that a small number of providers are regrettably considering withdrawing from the Core Funding scheme.
If a Partner Services wishes to withdraw from the Core Funding Programme, they must provide 3 months’ notice to the Scheme Administrator. This must be done by submitting a Service Request on the Early Years Early Years Hive outlining the withdrawal date and the reason for the withdrawal.
Services may choose to leave the scheme mid-year with reasons stated as being denied a fee increase, temporary closures, financial difficulties, administrative requirements and personal reasons such as retirement. Many services have left and 70% have later re-joined the scheme.
The Department, through the local Childcare Committees, engages directly with any such service to highlight the benefits of staying in Core Funding, not only for their services but also for the families who avail of them. I am hopeful that the providers may reconsider their decision.
As Core Funding is an optional scheme, providers have the autonomy to withdraw from or choose not to participate in the scheme.
While the State cannot mandate providers to participate in the scheme, Core Funding has been designed with maximum participation of providers in mind as reflected in the year-on-year growth of investment in the Scheme (rising from €259 million in year 1 to over €390 million in year 4). This represents an increase of over 50% in Core Funding in three years.
I was also 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 over €480 million. That is an additional €89.3 million on the current full year allocation, or a 23% increase.
The increased allocation will support capacity growth across the sector, adherence to fee management conditions, and improvements in staff pay and sustainability.
In addition to this increased allocation, being in Core Funding unlocks additional supports for services to access, including:
• access to wider financial supports where a service is experiencing financial difficulty or has concerns about their viability;
• access to enhanced support for services caring for concentrated numbers of children facing disadvantage through Equal Start; and
• opportunities to apply for capital grants through the Department.
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.
There are also wider 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 (CCC) while remaining within Core Funding.
Once a service engages with their local CCC they will be able to avail of sustainability supports through the case management process.
As part of the Case Management process, CCCs assist services with issues and difficulties that arise. This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, financial support, as well as more specialised advice and support appropriate to individual circumstances.
I do not want any service to be faced with financial sustainability issues and officials in my Department are committed to working with any such service to support them in delivering early learning and childcare for the public good.
I would encourage any service experiencing financial difficulty and who would like support to contact their CCC to access case management supports. Contact details for the CCCs can be found at [City and County Childcare Committees].
