Barry Ward (Dún Laoghaire, Fine Gael)
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15. To ask the Minister for Children, Disability and Equality if her attention has been drawn to the concerns of parents with children attending a childcare centre (details supplied); the actions she will take to engage with management of this childcare centre on these concerns; and if she will make a statement on the matter. [49128/25]

Barry Ward (Dún Laoghaire, Fine Gael)
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My question relates to a childcare provider in Dublin who has indicated it is withdrawing from the market. Has the Minister plans to do anything to prevent such things as this happening and thereby increasing the costs hugely for parents using those facilities?

Norma Foley (Kerry, Fianna Fail)
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I am aware of the facility to which the Deputy refers. As he indicated in the question, Once Upon a Time has regrettably chosen to withdraw four of its ten services from core funding. They are Once Upon a Time services in Ballymount, Dublin 2, Dundrum and Shankill, with six other sites remaining in the core funding. The Department, through the local childcare committee, has engaged directly with the provider in question to highlight the benefits of staying in core funding not only for their services but also for the families who avail of them. The provider has not reversed the decision to date.

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 one to more than €390 million in year four. Moreover, the annual changes to the allocation model and in the conditions attached to the funding has assured that the scheme remains responsive, balancing the needs of providers while seeking also to meet a range of other objectives. Among those objectives is ensuring taxpayers' money is used in a way that sustains services while not excessively increasing private profit.

Core funding translated into €1.5 million in year one of the scheme for Once Upon a Time services. It then rose to €2.1 million in year two and to €2.5 million in year three when all ten of the services in the chain participated. The Department projects that core funding for these services would be in the region of €3.3 million for year four of the scheme which would be an increase of 109% on funding for the chain since 2022. However, Once Upon a Time, regrettably, decided to withdraw four of its ten services from the scheme in year four, forgoing an estimated €1.1 million in core funding for those services.

As core funding is an optional scheme, this company has the autonomy and business freedom to choose not to join core funding, even though this will result in the loss of the significant financial support it offers and the substantial benefits and certainty it brings to the families accessing the services. For this coming programme year Once Upon a Time remains eligible to provide the national childcare scheme, the early childcare and education programme and the community childcare subvention plus saver programme.

Barry Ward (Dún Laoghaire, Fine Gael)
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I accept what the Minister said. This scheme is optional for companies and I understand why that is the case. I also understand that we campaigned on this issue last year and we promised the parents we would deliver serious cuts to the cost of childcare, reducing it to €200 per month.

There are 11 centres throughout Dublin. As the Minister mentioned, the owners of this facility have changed the facilities in three, one of which is in my constituency in Shankill but there are two others in my constituency in Dún Laoghaire and Cherrywood. Parents in my area are really worried that the contagion, if I can call it that, is going to spread to their facilities. The increase in cost is going to be up to €340 per child per month. It is totally unacceptable. We need to take action. I accept the Minister has engaged but it does not seem to be working. Can we make sure it is going to work?

Norma Foley (Kerry, Fianna Fail)
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Core funding remains open and Once Upon a Time may reapply for the withdrawn services during the year and can join the overwhelming majority of providers. Already 90% of all providers are involved in core funding, which is a 5% increase on the number of providers involved in core funding this time last year. The opportunity remains open to Once Upon a Time to reapply for the services it has withdrawn. The Department is always exploring the potential for further changes to enhance core funding. Any changes for year five, starting 26 September, would be based on the operation of year four of the scheme, starting this month as well as stakeholder input. The issues faced by families accessing Once Upon a Time services will inform that work.

I also want to acknowledge the fourth year of core funding began on 1 September 2025 and as of that date, 4,336 services have signed up for the fourth year. Core funding has been designed with maximum participation of providers in mind, as reflected in the year-on-year growth of investment in this scheme from 259 in year one to 390 in year four.

Barry Ward (Dún Laoghaire, Fine Gael)
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I accept everything the Minister said. The owners of this facility say that the core funding model traps services in outdated, frozen fee structures while the cost of delivering quality childcare has continued to rise. I want this scheme to work. I want to make sure that the Minister's engagement with this company works and that we bring them back into the fold. However, the reality is there are parents in my area who are genuinely concerned that they are facing fees in the region of €1,400 per month, per child. It is an astonishing amount. It is a massive burden on parents throughout the country, which is why we all campaigned to bring that down to €200 per child per month. That is what we are trying to do. Does the Minister agree that if the companies are not buying into it - and yes, it is their option to do that - does that not massively compromise our ability to reduce the cost of childcare? They have changed it in respect of three centres but there are 11 in Dublin. Is the Minister not concerned that if she is not successful in engaging with these companies that it will compromise this policy?

Norma Foley (Kerry, Fianna Fail)
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I reiterate that the Government is absolutely committed to the €200 per month payment as outlined in the programme for Government over its lifetime. I took note of the Deputy's commentary that this provider and other providers are suggesting that core funding "traps services". That is not an accurate phrase to use insofar as I can point to the fact that core funding provided €1.5 million in year one of the scheme for Once Upon a Time services. That increased to €2.1 million in year two and indeed €2.5 million was made available in year three through core funding to those services. I am not so sure trapping the service is accurate nor indeed is it accurate when we reflect upon the fact that at this point in the year 90% of services have all engaged with the core funding model and have signed up to the core funding model. Clearly, the vast majority of services we have, believe in the core funding model, notwithstanding that we can always improve the situation. They have subscribed to the core funding model.

Barry Ward (Dún Laoghaire, Fine Gael)
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I thank the Minister.