I am aware that a small number of service providers have regrettably chosen to withdraw from the Core Funding scheme.
As of 3 November 2025, there were 5,035 services listed as being open on the Early Years Platform, of which 177 (4%) had left Core Funding at one point over the lifetime of the scheme to this date and continue to operate outside of this scheme.
According to data provided by Pobal on 16 June, since November 2025, 6 services have withdrawn from Core Funding at one point in the current programme year. Of these 6 services, 2 services have rejoined Core Funding following their initial withdrawal.
The Department, through the local Childcare Committees, engages directly with any such services to highlight the benefits of staying in Core Funding, not only for their services but also for the families who avail of them.
As Core Funding is an optional scheme, service providers have the autonomy and business freedom to withdraw from Core Funding, even though this will result in the loss of significant financial support it offers them and the substantial benefits and certainty it brings to the families accessing the services.
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. This represents 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 and will support Partner Services in adhering to the fee management conditions of the grant including reductions in the maximum fee caps from September 2026.
In addition to the year-on-year increases in the Core Funding allocation, the Department has introduced a range of other enhancements to the Scheme in recent years to improve protection for families through, for example, new deposit rules and maximum fee caps.
It should be noted that uptake of Core Funding remains strong. 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.
Improving access to quality and affordable early learning and childcare is a key priority of Government.
Early learning and childcare capacity is increasing. Data from the Annual Early Years Sector Profile 2024/25 shows that the estimated number of enrolments increased by approximately 25% from the 2021/22 programme year.
However, it appears that demand for early learning and childcare remains higher than available supply in certain parts of the country, particularly for younger children.
One of the ways Government is supporting the expansion of capacity is through capital funding.
The Building Blocks Extension Grant Scheme is designed to increase capacity for full day places for children aged 1–3. Core Funding Partner Services could apply for capital funding to physically extend their premises or, in the case of community services, to construct or purchase new premises. The scheme will deliver up to 1,500 full-day care places.
A further Building Blocks scheme is now open for applications. This round of capital funding will fund extensions to existing premises to allow for increased numbers of children to be offered places on a full-time basis. Community and private providers who are currently Core Funding partner services will be eligible to apply for this scheme.
Separately, I recently announced €135 million of capital investment over the coming five years for State-led services to provide high-quality, accessible early learning and childcare. The process will begin in 2026 with investment in buildings in what will be a ground-breaking initiative. Up to eight buildings will be selected for investment this year. The State-led initiative will provide thousands of places up to 2030.
The Phase 1 report of Shaping the Future: the Early Years Action Plan was published on 17th December. The report sets out the next steps in the delivery of a number of Programme for Government commitments relating to early learning and childcare. A central objective of Shaping the Future is to reduce parental fees to an upper limit of €200 per month over the lifetime of the Government.
The Phase 1 report focuses on short-term actions to be undertaken in 2026 within the budgetary resources available for the year. In line with the Programme for Government commitment, a broad public consultation process is currently underway. Results of this consultation, as well as additional analysis, will inform Phase 2 of the Action Plan. Phase 2 actions will be published later in 2026 and will be undertaken from 2027 through to the end of 2029.