Written answers

Wednesday, 22 January 2025

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of James GeogheganJames Geoghegan (Dublin Bay South, Fine Gael)
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1278. To ask the Minister for Children, Equality, Disability, Integration and Youth in the context of the draft Programme for Government commitment to review and increase core funding for childcare services, if he can detail the actions that will be taken to entice childcare providers who have exited core funding back into core funding thereby ensuring the fee cap is maintained for the benefit of all parents; if he will provide a forum for engagement with childcare providers who have exited core funding; and if he will make a statement on the matter. [1754/25]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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I cannot comment on what steps the new Government will take to achieve the measures highlighted in the draft Programme for Government as I am not a party to that agreement. However, in my time as Minister I have taken measures to ensure that Core Funding is as attractive as possible for providers to ensure children and families can benefit from the conditions of the scheme including the fee management measures.

The introduction of Core Funding in 2022 brought a significant increase in investment for the sector. This increased year on year and is now worth €331 million in the current year (September 2024-August 2025).

This allowed for the Base Rates for all age groups to increase for the third programme year for all services, meaning all services have seen an increased level of funding for the same level of provision.

Targeted measures which were introduced in the second programme were increased again in year. This means smaller and sessional only services have seen greater increase in funding.

In light of concerns raised about the fee freeze by some providers charging low fees, in addition to the increase in Core Funding in year 3, a new Fee Increase Assessment and process was introduced. This process allowed for services charging fees below the average in their county to apply to increase their fees up to an approved level by my Department.

In addition, officials in my Department engage with members and nominees of the Early Learning Childcare Stakeholder Forum and have committed to continued engagement with the sector on the future development to the Core Funding scheme.

In line with Budget 2025, Core Funding will be worth approximately €390 million in year 4 of the scheme, contingent on updated Employment Regulation Orders.

I do not want any service to be faced with financial sustainability issues and officials in my Department are committed to working with any such service to support them in delivering early learning and childcare for the public good. As such, in addition to the increased level of Core Funding for year 3 of the scheme and fee management developments, there are wider financial supports available from my Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed while remaining within Core Funding.

I encourage services to avail of these supports as an alternative to withdrawing from Core Funding and removing the benefits of this Scheme to parents.

However, Core Funding will remain open to these providers should they subsequently commit to offering services under the conditions and investment levels on offer through Core Funding.

I anticipate that these measures to support providers, will secure the highest level of participation in the scheme possible when the fee caps are introduced from September this year, so that the majority of children and families can benefit from the affordability and fee management measures brought about by the scheme.

As the Deputy will appreciate, it is to my successor as Minister and the new Government to continue this work.

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