I propose to take Questions Nos. 990, 991, 992, 993, 994 and 995 together.
The Department is fully committed to promoting affordability for parents through Core Funding. This is achieved through the Core Funding fee management system, which includes fee caps and a freeze on the majority of fees at September 2021 levels.
The fee caps are underpinned by the Common Fee Structure, which provides a framework through which weekly hours of provision are categorised into six Fee Bands A-F. This framework was placed on the fees that already existed in the sector, the Common Fee Structure does not create fees, instead it sets thresholds for maximum fee caps to support the reduction in the highest fees. The hours per week and associated maximum fee at each Fee Band refer to the care purchased by a parent for their child on a weekly basis. Therefore, the fees charged to a parent should be based on the hours that were agreed between the parent and the service. As private businesses, Partner Services can choose the types of care that they offer to parents provided that they do not breach the fee cap or other Scheme rules.
The maximum fee cap values in each Fee Band are stepped down on a pro-rata basis in increments of €59, meaning there is a maximum amount a service can charge at each Fee Band, from €59 at Band A (less than 10 hours per week) up to €354 at Band F (50 hours or more per week).
Fee caps were introduced for the first time in September 2024 in relation to First-Time Partner Services, meaning services joining Core Funding for the first time in programme year 2024/2025. These initial set of fee caps applied to a relatively small cohort, with the maximum fees set in increments of €65 from Band A up to €390 in Band F.
These pro-rated incremental fee caps are designed to ensure a balance between costs to parents and viability for Core Funding Partner Services.
|
Fee Band
|
Hours per week
|
Maximum weekly fee for First Time Partner Services in 2024/2025
|
Maximum weekly fee for ALL Partner Services in 2025/2026
|
% Decrease in maximum weekly fees 24/25-25/26
|
|
Band A
|
Less than 10 hours
|
€65
|
€59
|
10%
|
|
Band B
|
Between 10 hours and 19 hours 59 minutes
|
€130
|
€118
|
10%
|
|
Band C
|
Between 20 hours and 29 hours 59 minutes
|
€195
|
€177
|
10%
|
|
Band D
|
Between 30 hours and 39 hours 59 minutes
|
€260
|
€236
|
10%
|
|
Band E
|
Between 40 hours and 49 hours 59 minutes
|
€325
|
€295
|
10%
|
|
Band F
|
50 or more hours
|
€390
|
€354
|
10%
|
The Department is aware of some threshold cases where weekly hours of care extend into a higher Fee Band at the lower end, raising the maximum allowable fee for those weekly hours. However, existing fees cannot be increased within a fee band without a proportional increase in the weekly hours of care.
In initial public communications, the fee cap of €295 at Band E (40 hours up to 49 hours 59 minutes per week) was used as the reference point as this is the most common type of full day care place. This average full day place falls into the middle of Band E, thus a service charging for exactly 50 hours of service is providing approximately 5.5 hours of service more than the average at Band E.
The Department does not yet hold data relating to costs borne by families purchasing care in specific Fee Bands.
The fee caps on all Partner Services which came into effect in September represent the latest progression in the phased development of the Core Funding fee management system and an important step towards the reduction of fees to €200 per month over the lifetime of this Government. This system is subject to annual review, with further improvements planned for the years ahead.
To support providers in adhering to Core Funding fee management conditions, including reductions in the maximum fee caps in the 2026/2027 programme year, additional funding was secured in Budget 2026. This will guarantee that Core Funding’s monetary protections continue to be passed on to families while ensuring sustainability and stability for the sector.
Full details of Core Funding 2026/27, including new fee management measures, will be made available to the sector in the coming weeks.
These latest Core Funding fee management measures build on a range of supports already in place. The recent publication of Shaping the Future, the Early Years Action Plan Phase 1 Report sets out the next steps for building an affordable, high-quality, accessible early learning and childcare system, informed by stakeholder consultation. This includes the long-term goal of reducing the cost of early learning and childcare further to €200 per month over the lifetime of the Government.
Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee (CCC) for assistance. For information, the Department has a list of all Core Funding Partner Services which is updated regularly on the Departments website under How to Find a Partner Service.
