Written answers

Monday, 9 September 2024

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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1547.To ask the Minister for Children, Equality, Disability, Integration and Youth the core funding levels of support per hour to childcare providers and the payments for specific additional elements delivered, which will apply for the coming school year; the level of increase in each case compared to last year; and the estimated number of providers and children served by those who have continued operating under the scheme and by those who have left the scheme.[35815/24]

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

The majority of Core Funding is distributed based on a service's capacity - the opening hours, opening weeks and the age group of children for whom services are provided as well as number of places available.

Year 3 of the scheme (September 2024 – August 2025) sees significant further investment with the budget increasing by 15% to €331m. The increased measures include:

  • The Base Rates for all age groups increasing, with larger increases in funding for places offered to children under the age of three.
  • The flat rate for services registered on the Tusla Early Years Register as sessional only is increasing from €4,075 to €5,000.
  • The minimum Base Rate allocation is increasing from €8,150 to €14,000. This is the minimum amount of funding a centre-based service (not childminders) will receive through their Base Rate and ensures a minimum guaranteed income for services.
  • The maximum Base Rate allocation is decreasing from €600,000 to €500,000.
The increase in base rates is demonstrated in the table below.

Table 1: Core Funding Base Rates in years 2 and 3 for full day (5+ hours per day) and part-time (3.5 – 5 hours per day)

Age Range Number of child places per staff member Year 2 Base Rates Year 3 Base Rates Percentage Increase on Year 2 Base Rates
0-1 years 3 €1.69 €1.86 10.1%
1-2 year 5 €1.10 €1.23 11.8%
2-3 years 6 €0.95 €1.06 11.6%
3-6 years 8 €0.71 €0.76 7.0%

Table 2: Core Funding Base Rates in years 2 and 3 for sessional services

Age Range Number of child places per staff member Year 1 Base Rates Year 2 Base Rates Year 3 Base Rates Percentage Increase on Year 2 Base Rates Percentage Increase since Year 1
0-1 years 3 €1.66 €1.69 €1.86 10.10% 12.00%
1-2.5 years 5 €1.07 €1.10 €1.23 11.80% 15.00%
2.5-6 year 11 €0.65 €0.68 €0.72 5.90% 10.80%

Table 3: Core Funding Base Rates in years 2 and 3 for school-age childcare services

Age Range Number of child places per staff member Year 1 Base Rates Year 2 Base Rates Year 3 Base Rates Percentage Increase on Year 2 Base Rates Percentage Increase since Year 1
4-15 years 12 €0.55 €0.57 €0.59 3.50% 7.30%

Up to now, services availing of Core Funding have not been allowed to raise their fees above what was charged to parents on 30 September 2021 (or at the point of first signing up for Core Funding if the service did not exist on 30 September 2021).

While this fee freeze will remain in place for the majority of services for year 3 of Core Funding, my Department has introduced:

  • a new Fee Increase Assessment and Approval Process whereby a Partner Service meeting certain criteria may apply to increase their fees up to an approved level, and
  • a cap on fees for services joining Core Funding for the first time this year. This will extend to all services from September 2025.
In year 1 over 4,200 providers entered the scheme at its peak. In year 2 over4,350 servicesparticipated in Core Funding and subscribed to theeffective fee freeze, and more than 150,000 children in these services benefitted fully from enhancements to the National Childcare Scheme (NCS).

To date, over 4,000 providers have either started or submitted their Core Funding application – a figure that on par with this time last year.

Core Funding remains open to all eligible providers to apply.

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