Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I thank Deputy Currie. Her passion for this issue has been very clear throughout her contributions this morning and previously. I will relay the points she has raised to the Minister, Deputy Foley, who has responsibility for this area. The introduction of core funding in 2022 brought a significant increase in investment for the sector of €259 million, paid directly to services in the first year of the scheme, of which €210.8 million was entirely new funding. Now in its third year of operation, core funding is worth €331 million. The increases implemented from September last year facilitate increases in the base rate for all age groups. The strengthening of targeted measures was introduced in 2023 to support sessional and smaller services and growth in the sector. Fee management was introduced, with the substantial investment of core funding, following the recommendations of the expert group in the Partnership for the Public Good report.

For Deputy Currie's information, a total of 1,147 services submitted applications to the fee increase assessment team in 2024. As of 5 February 2025, a total of 1,098 decisions have been issued to eligible services. Additionally, of the 1,147 applicants, a total of 811 have been approved to increase at least one fee, which equates to a success rate of 73.86%.

Parents and guardians and their children can only avail of the benefits and protections that core funding creates, such as the effective fee freeze, at 2021 levels, if their service has chosen to participate in the scheme as a partner service. It is a matter for providers to decide whether they wish to withdraw from the core funding scheme, the significant financial supports it provides to providers and the certainty it provides to parents through the associated fee management measures. However, the Minister, Deputy Foley, is confident that given the level of investment and the associated supports, services should not need to take this step. While a provider may withdraw from core funding, they will remain eligible in the programme year to provide the national childcare scheme, the early childhood care and education programme and the community childcare subvention plus saver programme.

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