Dáil Éireann Debate, Monday - 7 September 2026
2807. Deputy Barry Ward asked the Minister for Children, Disability and Equality the position regarding the engagement her Department has had with the management of a childcare facility (details supplied) prior to its withdrawal from the core funding model. [59550/26]
Amharc ar fhreagra2808. Deputy Barry Ward asked the Minister for Children, Disability and Equality the position regarding the engagement her Department has had with the management of a childcare facility (details supplied) since its withdrawal from the core funding model with a view to continuing its participation in this scheme. [59551/26]
Amharc ar fhreagraI propose to take Questions Nos. 2807 and 2808 together.
I am aware that a small number of services, including Star Tots Creche, 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, Star Tots Creche’s projected full-year Core Funding allocation 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.
|
Name of provider |
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 |
|
Star Tots Creche |
€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.
