Dáil Éireann Debate, Tuesday - 23 June 2026
601. Deputy Niall Collins asked the Minister for Children, Disability and Equality for an update on issues raised in correspondence (details supplied); and if she will make a statement on the matter. [46946/26]
Amharc ar fhreagraI acknowledge the concerns and viewpoints of providers and parents regarding the operation of the Core Funding scheme, and I wish to assure them that the Department has taken steps to ensure the scheme responsive to the needs of both.
I am aware that a small number of services are regrettably considering withdrawing from the Core Funding scheme.
The Department, through the local Childcare Committees (CCC), engages directly with any such service to highlight the benefits of staying in Core Funding, not only for their service but also for the families who avail of them. This engagement has borne fruit on numerous occasions in the past and I remain hopeful of a similarly positive engagement in this regard.
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.
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.
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.
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 €90 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.
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.
Core Funding has enjoyed high participation from the sector since its launch in September 2022. As of 15 June, there were 4,647 services signed up to the fourth year of Core Funding which represents 93% uptake by eligible 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: it shows that the vast majority of families will continue to benefit from the scheme’s fee management conditions.
The Department is always exploring the potential for further changes to enhance Core Funding. Any changes for future programme years would be based on the operation of year 5 of the Scheme starting in September as well as stakeholder input.
Moreover, 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.
Phase 2 of Shaping the Future is in development and will be published by year end.
