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 billion in 2023 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 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.

Core Funding has increased by 11% to reach €287 million for year 2 of the scheme, providing a sustainable platform for investment with increases for all services.

Budget 2024 allocated an additional €37.4m to 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 Core Funding Programme Year 1, 4 Services, early years and school-age care providers, withdrew their application in 2023.

In Core Funding Programme Year 2, *14 Services, early years and school-age care providers, withdrew their application in 2023. See table below for breakdown.

*Please note that 11 Services that withdrew in August, did so before contract began in programme year 2.

It is matter for providers to decide whether they wish to benefit from this public funding or withdraw from the Scheme and remove the benefits of the Core Funding to parents, in particular the Core Funding Fee Freeze.

However, I am confident that given the level of investment and associated supports, services should not need to take this step.

There is extensive engagement with provider representatives and providers of all types, via various specific consultation activities and through various fora, including through the Early Learning and Childcare Stakeholder Forum.

In addition, 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 strongly encourage services to avail of these case management supports as an alternative to withdrawing from Core Funding and removing the benefits of Core Funding to parents.

Roderic O'Gorman (Dublin West, Green Party)
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My Department is currently collating the information requested and a reply will issue directly to the Deputy as soon as possible.