Dáil Éireann Debate, Tuesday - 23 June 2026
625. Deputy William Aird asked the Minister for Children, Disability and Equality the level of core funding that will be available to early learning and childcare providers in programme year 2026/2027; the increase in funding compared with the current programme year; and if she will make a statement on the matter. [47526/26]
Amharc ar fhreagraCore 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.
When first introduced in 2022, Core Funding had an annual allocation of €259 million, of which, €210.8 million was entirely new funding to the sector.
That annual allocation has increased year-on-year and exceeds €390 million for the fourth, and current, year of Core Funding. This represents an increase of over 50% in Core Funding over three years.
I was delighted to announce further investment in Core Funding 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.
This increased investment will allow for further increases in capacity across the sector, with over €21 million specifically set aside to support Partner Services in adhering to enhanced Core Funding fee management conditions, from September 2026.
The increased allocation also includes up to a maximum of €45 million to facilitate improved pay for early years educators and school-age childcare practitioners through enhancement of the Employment Regulation Orders in Year 5 of the scheme. Consequently, over 2 years, the Department has made an allocation of €90 million available to support possible increased rates of pay.
In addition to the increasing levels of investment, there are also wider financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability.
Participation in Core Funding is optional, but it remains open to all Tulsa registered providers, subject to their agreement to the terms and conditions of the Core Funding Agreement. Applications for the Core Funding 2026/2027 programme year opened on 8 June 2026.
It is a matter for providers to decide whether they wish to sign up to Core Funding and benefit from the significant financial supports it offers to providers and the certainty it gives to parents through the associated fee management measures.
