Dáil Éireann Debate, Tuesday - 26 May 2026
996. Deputy Albert Dolan asked the Minister for Children, Disability and Equality whether consideration is being given to increasing ECCE and core funding scheme rates in light of rising operational costs, staffing pressures, insurance costs and the increasing level of additional needs support being provided by early years services; and if she will make a statement on the matter. [39708/26]
Amharc ar fhreagraIn relation to ECCE Programme, consideration is not currently being given to the capitation rates payable to service providers.
In relation to the Core Funding grant to early learning and childcare providers towards their operating costs, funding for that scheme will increase approximately by 23% for year 5 of the scheme or to over €480 million - commencing from September.
This increased investment will allow for further increases in capacity across the sector, with €21.4 million specifically set aside to support Partner Services in adhering to enhanced Core Funding fee management conditions, from September 2026.
The increased allocation in Year 5 of the scheme also includes €45 million to support service meet possible additional cost associated with future improvements to current Employment Regulation Orders rate if negotiated by the Early Years Service Joint Labour Committee.
The majority of Core Funding is distributed to services via the Base Rate, which is based on a service’s staffed capacity – the opening hours, operating weeks, the age group for whom services are provided, and the number of places available. Core Funding allocations are based on staffed places, not on child registrations and attendance levels. Places do not have to be filled in order to be allocated Core Funding, but for capacity to be funded, there must be enough staff in place to satisfy the minimum staff to child ratios as set in the Regulations made under the Child Care Act 1991. This provides services a guaranteed minimum income, supporting stability where attendance may be fluctuating.
The base rates in Core Funding have been developed using the various components associated with the cost of delivery of service provision such as: staff pay and conditions (including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions); administrative staff/time, and non-staff overhead costs. These components have been factored into the calculation of the budget for Core Funding since the scheme began in 2022. The Core Funding Base Rate is also adjusted, year on year, in line with increasing costs.
The Department has also 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.
Since the scheme was introduced, its effectiveness has been subject to ongoing assessment, which has facilitated the iterative evolution of this scheme. The annual changes to the allocation model and in the conditions attached to the funding has ensured the Scheme remains responsive, balancing the needs of providers while seeking also to meet a range of other objectives. Among these objectives is ensuring taxpayers’ money is being used in a way that sustains services while not excessively increasing their private profit.
