Richard Bruton (Dublin Bay North, Fine Gael)
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28. To ask the Minister for Children, Equality, Disability, Integration and Youth how many childcare providers have applied for fee increases within core funding; the size of the fee increases approved to date; and if he will make a statement on the matter. [43485/24]

Roderic O'Gorman (Dublin West, Green Party)
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Core Funding Partner Services’ fees are currently frozen at levels set by individual providers on or before 30 September 2021.

While Core Funding represents a significant increase in income for services, and allows for the introduction of the fee management system, there is a notable difference in fees charged across the sector, and I recognise that some services may be operating with a fee that is not sufficient to sustain the business even with increased State investment.

For the third Core Funding programme year, which began in September, I introduced the Fee Increase Assessment process to support services in such circumstances.

This measure balances the need of parents for stability with their early learning and childcare costs and the need for providers to operate viable businesses in order to continue providing this service for the public good in their community, and my Department has therefore placed limits on the scale of any approved increase.

The Fee Increase Application process opened on 31 July this year.

Only services currently charging fees below the average in their county are eligible to apply. There is an assessment to ensure there is a demonstrable need for a fee increase before approval is granted.

As of 22 September, 964 services have applied for a fee increase, with 741 services deemed eligible to move onto the application stage of the process. There is a rolling approval rate of 75%.

Where a demonstrable need to increase a fee is confirmed, the resulting increase will not exceed €0.74 per hour (the increase to the National Childcare Scheme subsidy from September 2024). For example, an offering of 45 hours will not be eligible for an increase of more than €33.30. The maximum amount approved for a fee increase is €33.30.

Officials in my Department will issue a letter to Partner Services who have been approved for a fee increase. This letter will include the new maximum fee which can be charged by the service. The service must show this letter to parents/guardians before any fee increase takes place. A Partner Service will have to update the Partner Service Parent Statement. This must be circulated to parents within 10 working days of the sanctioned detailed fee increases being provided to parents.