Dáil Éireann Debate, Monday - 7 September 2026
2806. Deputy Barry Ward asked the Minister for Children, Disability and Equality if her attention has been drawn to the withdrawal of a childcare facility from the core funding model (details supplied); and the actions she will take to support parents with the knock-on price increase. [59549/26]
Amharc ar fhreagraI am aware that a small number of services, including the provider referred to, are regrettably considering withdrawing from Core Funding.
The Department, through the local Childcare Committees (CCCs), has engaged directly with this service to highlight the benefits of staying in Core Funding, not only for their service but also for the families who avail of them. I am pleased to inform the Deputy that the Department has been advised that this service intends to enter Core Funding for the upcoming programme year.
I wish to advise the Deputy that the relevant CCC engages with any service provider who indicates an intention to withdraw from Core Funding, to ensure that the provider has all relevant information to hand prior to making any decisions and to ascertain whether a particular issue with a provider can be resolved. The Department directs these actions in light of the positive outcomes for all parties involved if such providers remain in or return to Core Funding.
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 are required to comply with the rules of the Core Funding scheme, including the associated fee management measures and minimum notice periods. In line with the Core Funding Partner Service Agreement, a service that is 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 associated fee management measures and required minimum notice periods. They are also not required to provide a reason for choosing not to reapply for Core Funding to the scheme administrator.
As per the table below, the projected full-year Core Funding allocation for the provider referred to for year 4 of the scheme is €298,419.76, representing an increase of 41% since joining the scheme. The projected allocation for this programme year figure includes funding specifically ringfenced for improvements to staff pay, to support the Employment Regulation Order that came into effect on 13 October 2025.
|
- |
2022/2023 Core Funding received |
2023/2024 Core Funding received |
2024/2025 Core Funding received |
2025/2026 Core Funding Contract Value (July 2026) |
Difference in grant value between 2022/2023 and 2025/2026 |
% change in grant value between 2022/2023 and 2025/2026 |
|
Provider |
€212,318.86 |
€241,783.33 |
€269,149.85 |
€298,419.76 |
€86,100.90 |
41% |
The introduction of Core Funding in 2022 brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, of which €210.8 million was entirely new funding to the sector.
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 €482 million in year 5, which started in September). This represents an increase of 86% in Core Funding in four years.
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.
Participation in Core Funding is optional, but it remains open to all Tusla-registered providers, subject to their agreement to the terms and conditions of the Core Funding Agreement. 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.
The Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS) are currently available to parents regardless of whether or not the early learning and childcare service their child is attending is participating in Core Funding.
ECCE is a universal programme which provides 2 years of free preschool to children in the eligible age range of 2 years and 8 months to 5 years and 6 months. The Department funds private early learning and care service providers to provide the ECCE programme at a standard rate of €69 per week per child attending the ECCE programme.
The NCS has undergone a number of enhancements in recent Budgets with the minimum NCS subsidy steadily rising from €0.50 in 2022 to €2.14 in September 2024 alongside extensions to eligibility. Additionally, since September 2024, the NCS has been open to Tusla-registered childminders who wish to participate in the scheme. Families availing of childminders who are participating in the NCS can claim a subsidy towards their costs. Further enhancements to the income-assessed subsidy are being introduced from September 2026, raising the base threshold from €26,000 to €34,000 and the maximum threshold from €60,000 to €68,000, with additional increases to the multiple child discounts.[]
[]The Phase 1 report of Shaping the Future: the Early Years Action Plan was published in December 2025. The report sets out the next steps in the delivery of a number of Programme for Government commitments relating to Early Learning and Care (ELC) and School Age Childcare (SAC). 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.
The Phase 1 report (published last December) documents actions that will be undertaken in 2026 using the Department’s existing policy tools. The short-term actions in Phase 1 build on recent reforms to the National Childcare Scheme and Core Funding, and use existing policy mechanisms to strengthen affordability, access and quality.
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. Phase 2 actions will include a roadmap to reduce parental fees to a maximum of €200 per month over the lifetime of the Government.
