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.
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 2022 to over €390 million in 2025). This represents an increase of over 50% in Core Funding in three years.
As of 8 June, 4,648 services are contracted to Core Funding programme year 2025/2026, which is 93.3% of all eligible services. Over 70% of services who left the scheme at one point have returned to the Scheme. 336 eligible services are currently not participating. These services are welcome to join Core Funding at any stage. The Department/CCC can support services with further information on how to join.
Core Funding has enjoyed high participation from the sector since its launch in September 2022.
Currently, services that partake in the National Childcare Scheme (NCS) are not required to take part in Core Funding, reducing the impact of the NCS as some families are not benefiting from the fee-control measures (fee-freeze and fee caps) or additional funding for quality provision that is provided by Core Funding. This will also be the case for the coming programme year 2026/2027.
Shaping the Future: The Early Years Action Plan, Phase 1 report (published on the 17 of December 2025) sets out measures to achieve key Programme for Government commitments on the affordability, quality, and accessibility of early learning and care and school-age childcare. The Action Plan adopts a phased approach that enables action to be taken in 2026 while allowing adequate time for a broad public consultation and analysis on longer-term actions, which will be set out in a second report to be published by the end of 2026.
To deliver on the Programme for Government commitment to progressively reduce parental fees to €200 per month, the Phase 1 report of Shaping the Future states that a roadmap will be set out in Phase 2 to ensure that all publicly funded providers are supported to take part in Core Funding.
As noted in the Phase 1 report, this will include measures to reduce the administrative burden for providers of participating in publicly funded schemes.
Tax credits/ deductions have previously been considered in the context of work by the Department to reduce the cost of early learning and childcare to parents. Research by an Inter-Departmental Group in 2016 showed that supply-side measures (such as subsidies paid directly to providers to reduce fees to parents), rather than demand-side measures (such as tax credits to parents), represented the most effective use of Exchequer investment. This conclusion was based on international experience and on the ability to leverage quality and control fees for parents through supply-side measures.