Dáil Éireann Debate, Wednesday - 13 May 2026
195. Deputy Emer Currie asked the Minister for Children, Disability and Equality the engagement she has had with childcare providers who have expressed concerns in relation to core funding; if her Department has engaged with a provider (details supplied) who has recently advised parents that they are leaving core funding; and if she will make a statement on the matter. [35564/26]
Amharc ar fhreagraI am aware that Sharavogue School has regrettably signalled to families that they do not intended to rejoin Core Funding in the 2026/2027 programme year, commencing in September.
The Department, through the local Childcare Committees (CCC), has engaged directly with this service to highlight the benefits of staying in Core Funding, not only for their service but also for the families who avail of them. Dún Laoghaire-Rathdown CCC has confirmed that the service does not intend to enter contract for the 2026/2027 programme year. However, I remain hopeful that the provider may reconsider their decision and have asked the CCC to engage further with the provider.
Under the Core Funding Partner Service Funding Agreement, Partner Services must comply with the rules of the Core Funding scheme, such as the associated fee management measures and minimum notice periods. In line with the Core Funding Partner Service Agreement, services considering withdrawing from the scheme during a programme year must give 3 months’ notice of their intention to withdraw to the scheme administrator, and 3 months’ written notice to parents/guardians.
However, if an existing Partner Service decides not to enter a contract for the new programme year starting on 1 September, they, as private businesses, would no longer be subject to the provisions of the Core Funding Agreement and, by extension, the required minimum notice period to the scheme administrator and parents/guardians. They are also not required to provide a reason for choosing not to reapply for Core Funding to the scheme administrator.
As per the table below, Sharavogue School’s projected full-year Core Funding allocation for year 3 of the scheme is €617,603.64, representing an increase of 34% on the first year of Core Funding. The projected allocation for this programme year figure includes funding specifically ringfenced for improvements to staff pay, to support the Employment Regulation Order that came into effect on 13 October 2025.
|
Name of provider |
2022/2023 Core Funding received |
2023/2024 Core Funding received |
2024/2025 Core Funding Contract Value (Aug 2025) |
2025/2026 Core Funding Contract Value (24 Apr 2026) |
Difference in grant value between 2022/2023 and 2025/2026 |
% change in grant value between 2022/2023 and 2025/2026 |
|
Name of provider |
2022/2023 Core Funding received |
2023/2024 Core Funding received |
2024/2025 Core Funding Contract Value (Aug 2025) |
2025/2026 Core Funding Contract Value (24 Apr 2026) |
Difference in grant value between 2022/2023 and 2025/2026 |
% change in grant value between 2022/2023 and 2025/2026 |
|
Sharavogue School |
€461,010.82 |
€492,774.14 |
€551,848.52 |
€617,603.64 |
€156,592.82 |
34% |
This Core Funding allocation for Sharavogue School is paid to the services regardless of whether the places are filled or not filled. This provides services a guaranteed minimum income, supporting stability where attendance may be fluctuating.
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.
Further investment in Core Funding was announced 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.
In addition to the year-on-year increases, the Department has made changes to improve the sustainability of providers through, for example, targeted measures for small and sessional services and a fee increase assessment and approval process for services with fees frozen at unsustainably low rates.
Sharavogue School's application for a fee increase was approved in 2024. As part of that approval, the full-time fee increased from €285 to €307.73 per week.
There are also wider financial supports available where a service is experiencing financial difficulty or has concerns about their viability. These supports can be accessed through the Department’s case management process, which can be accessed while remaining in Core Funding.
All services have been encouraged to avail of these supports as an alternative to withdrawing from Core Funding and removing the benefit of Core Funding to children and their families.
While the State cannot mandate providers to participate in Core Funding, the scheme remains open to all registered providers subject to their agreement to the terms and conditions of the Scheme.
It should be noted that where a provider intends to withdraw or not contract into Core Funding, they remain eligible to provide the National Childcare Scheme and the Early Childhood Care and Education programme.
The ECCE Programme, which provides two years of pre-school without charge, enjoys participation rates of 96%. Over 70% of families on low-income report that they would not be able to send their child to pre-school without this Programme.
The National Childcare Scheme (NCS) complements the ECCE Programme, providing subsidies – both universal and targeted - to reduce the costs to parents for children to participate in early learning and childcare.
The NCS has undergone a number of enhancements in recent years to further improve affordability for parents. These include the extension of the universal subsidy to all children under 15 and two increases to the minimum hourly subsidy, which is now worth a minimum of €96.30 per week for 45 hours. The NCS increases since 2022 are there to benefit all families using registered childcare.
These schemes have made a significant impact on improving affordability of early learning and childcare for families and work more favourably for parents when they are offered as part of Together for Better, where parents are protected though Core Funding’s fee management framework.
The Department has also published the ‘Shaping the Future: Early Years Action Plan’ (Phase 1 Report). It sets out plans to achieve key Programme for Government commitments on the affordability, quality, and accessibility of early learning and childcare.
The Action Plan adopts a phased approach that allows for actions in 2026 to improve affordability, accessibility and quality, while also ensuring adequate time for a broad public consultation on longer term actions.
The report is available at: Shaping the Future: Early Years Action Plan https://www.gov.ie/en/department-of-children-disability-and-equality/publications/shaping-the-future/
It should be noted that uptake of Core Funding remains strong. As of 5 May, 93% of all eligible providers have signed up to the fourth year of Core Funding, which equates to over 4,630 services. These are the highest numbers of Partner Services in Core Funding at any point since the scheme was launched in 2022.
I am encouraged by this rate of participation; the vast majority of families will continue to benefit from the scheme’s fee management conditions.
The Department will continue to engage with the sector and continue to develop the scheme so that it can continue to see the high uptake levels it has seen this year, and indeed since it was launched in 2022.
Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee 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] https://www.gov.ie/en/department-of-children-disability-and-equality/publications/how-to-find-a-partner-service/
