Ivana Bacik (Dublin Bay South, Labour)
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1409. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will make a statement on the efficacy of the core funding agreement in relation to the freezing of fees for parents; if there has been a reduction in the number of early years providers which are signing up to the scheme; and if he will make a statement on affordability of childcare for parents. [1111/24]

Roderic O'Gorman (Dublin West, Green Party)
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Investment in early learning and childcare is at unprecedented levels with public funding for the first time reaching more than €1.1 billion in 2024 for early learning and childcare – a clear demonstration from Government of the value of the sector.

Core Funding is in operation since 15 September 2022 and has achieved very significant success in terms of the high levels of participation. With 95% participation of eligible services in year 1 and to date, 94% or over 4,300 providers have signed up for Core Funding Year 2, with applications still open. There are officially more services contracted for Core Funding year 2 than there were at the peak of Core Funding year 1.

Participation in Core Funding is optional but it remains open to all registered providers subject to their agreement to the terms and conditions of the funding.

One of the key features of Core Funding is the introduction of a system of fee management. Provision for the effective fee freeze is included within the Core Funding Partner Service Agreement to ensure that the affordability benefits from the NCS and ECCE are passed on to parents/guardians. This action is guided by the recommendations of the Expert Group, as approved by Government, to ensure that the introduction of fee management to the sector is done in a sustainable and considered manner.

Budget 2024 allocated additional funding for Core Funding. This increase on the 2023 allocation will support continued implementation of the scheme for the second programme year (September 2023 to August 2024) and into the third programme year from September 2024. In year 3 of the scheme, the value of Core Funding will increase by 15% or €44m to €331m.

Special supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City or County Childcare Committee (CCC). This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, as well as more specialised advice and support appropriate to individual circumstances.

I would encourage any service experiencing financial difficulty and who would like support to contact their City/County Childcare Committee (CCC) to access case management supports.

Additionally, I would encourage any parent with concerns or questions about fees to contact their local CCC for support and guidance. Contact details for the CCCs can be found at myccc.ie.