Norma Foley (Kerry, Fianna Fail)
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The introduction of Core Funding in 2022 brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, of which €210.8 million was entirely new funding.

Core Funding increased by 11% (to €287 million) in year 2 and by a further 15% in year 3 (to €331 million). This facilitated the following changes from 2 September 2024, which built on the targeted measures that were introduced in the second year of the scheme to support smaller and sessional only services:

• The base rates for all age groups increased 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 (a pre-school service offering a programme for a total of not more than 3.5 hours per session) increased from €4,075 to €5,000. This strengthens supports to sessional-only services, who typically operate for shorter hours per week and fewer weeks per year.
• The minimum base rate allocation increased from €8,150 to €14,000. This is the minimum amount of funding a centre-based service (not childminders) has received through their base rate and ensures a minimum guaranteed income for services. This increase supports smaller services and services operating in rural areas, who may be prone to fluctuations in demand.
• The maximum base rate allocation has decreased from €600,000 to €500,000. Services will not receive funding through the base rate beyond this maximum value. Any service receiving more than this maximum value will see their base rate funding reduce to this level.

Moreover, as part of the progressive development of the fee management system under Core Funding, the Department introduced new developments to fee management in year 3 of Core Funding.

While the fee freeze remains in place for a majority of services for year 3 of the scheme, in light of concerns about the fee freeze raised by some providers charging low fees, a fee increase assessment process was introduced, whereby services with fees below the average in their county could apply to increase their fees up to an approved level by the Department.

A fee cap was also introduced for services joining Core Funding for the first time - creating a maximum price that can be charged for early learning and childcare, thereby bringing the highest fees charged down. This fee cap will be extended to all services from September 2025

The table below provides information on the Core Funding received by the service in question for year 1 and 2 of Core Funding as well as the estimated grant in year 3 of the scheme:

Service name	2022/23 Core Funding grant value (incl. Interim Funding and funding guarantee)	2023/24 Core Funding grant value	2024/25 estimated Core grant
Service name	2022/23 Core Funding grant value (incl. Interim Funding and funding guarantee)	2023/24 Core Funding grant value	2024/25 estimated Core grant
Junior Genius Childcare Limited	€534,966.22	€624,436.28	€562,836.56

In addition to this funding, there are wider financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed while remaining within Core Funding.

All services are encouraged to avail of these supports as an alternative to withdrawing from Core Funding and removing the benefit of Core Funding to children and their families.

My Department is aware that Junior Genius has decided to withdraw from Core Funding. This service has the autonomy to make the decision that to withdraw is of greater value to them than committing to offering services under the conditions and investment levels on offer through Core Funding.

The Agreement for the provision of Core Funding in Programme year 3 (2024/2025), states the service must give 3 months’ notice of their intention to withdraw to the scheme administrator, and 3 months’ written notice to parents/guardians. I have been informed by Pobal, the scheme administrator that this service has provided them with the 3 months’ notice.

While this provider intends to withdraw from Core Funding, they remain eligible in this programme year to provide the National Childcare Scheme, the Early Childhood Care and Education programme and the Community Childcare Subvention Plus Saver programme.