Barry Heneghan (Dublin Bay North, Independent)
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264. To ask the Minister for Children, Equality, Disability, Integration and Youth her plans to deal the lack of childcare spaces in Dublin Bay north; to provide the number of childcare facilities in Dublin Bay north; the projected need for childcare spaces from 2025 to 2030; and if she will make a statement on the matter. [16264/25]

Norma Foley (Kerry, Fianna Fail)
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Improving access to quality and affordable early learning and childcare is a key priority of Government.

Demand for early learning and childcare beyond sessional pre-school provision is highly elastic and shaped very substantially by families' individual composition, circumstances, and preferences; employment patterns and income; and the price and availability of services.

Last year, a Supply Management Unit within the Early Learning and Childcare Division was established, and the Programme for Government articulates an intention that the unit be resourced and transformed into a Forward Planning and Delivery Unit to identify areas of need, forecast demand, and deliver public supply within the childcare sector where required.

A forward planning model is in development which will be central to my Department's plans to achieve the policy goals set out in the Programme for Government to build an affordable, high-quality, accessible early learning and childcare system, with State-led facilities adding capacity.

My Department continues to support the ongoing development and resourcing of Core Funding which has given rise to a significant expansion of places since the scheme was first introduced. Core Funding, which is in its third programme year, funds services based on the number of places available, whether or not they are filled.

This provides stability to services, and reduces the risk associated with opening a new service or expanding an already existing service. For the current programme year, the allocation for Core Funding allows for a 6% increase in capacity. Additional funding was secured in Budget 2025 to facilitate a further 3.5% increase from September 2025, in the fourth programme year.

The Government is also supporting the expansion of capacity through capital funding. The Building Blocks Extension Grant Scheme was launched on the 4th of November 2024. Applications for this scheme have now closed and an appraisal process has begun. The primary focus of the Extension Grant Scheme is to increase capacity in the 1–3-year-old, pre–Early Childhood Care and Education, age range for full day care.

Appraisal of applications for this scheme will consider the supply and demand in the area around the proposed projects and seeks to prioritise funding for areas with the biggest supply/demand mismatch. €25m will be made available this year to deliver additional capacity under the Scheme and I expect to announce the outcome of the application process in the coming weeks.

My Department funds 30 City/County Childcare Committees, which provide support and assist families and early learning and childcare providers. The network of 30 City/County Childcare Committees across the country can assist in identifying vacant places in services for children and families who need them and engage proactively with services to explore possibilities for expansion among services, particularly where there is unmet need.

Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee for assistance.

Administrative data from the Early Years Platform indicates that as of 1 February 2025, there were 158 early learning and childcare services registered for at least one DCEDIY funded programme or scheme in the Dublin Bay North constituency (as determined by the electoral (amendment) Act 2023).

Emer Currie (Dublin West, Fine Gael)
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265. To ask the Minister for Children, Equality, Disability, Integration and Youth the reason for the exclusion of capital expenditure when assessing the profitability of childcare service providers; if this practice will be reviewed; and if she will make a statement on the matter. [16267/25]

Norma Foley (Kerry, Fianna Fail)
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Fee management was introduced with the substantial investment of Core Funding following the recommendations of the Expert Group, approved by Government, to first limit increases in fee rates. The Fee Increase Assessment process and the introduction of a fee cap are the first steps to further advance this system of fee management in line with the recommendations outlined in Partnership for Public Good.

The exact calculation used for this process was outlined in the Fee Increase Assessment Service Specific Outline letter, which was sent to Partner Services alongside their decision letter. As explained in this letter, the assessment uses the financial data which the service has already submitted as part of their contractual obligations for Core Funding 2022/2023 to avoid having services duplicate tasks, and services were not required to resubmit financial data for the assessment.

The calculation used to determine if a service can be approved for a fee increase is the same for all services to ensure fairness. Services existing fee structures reflect their different business models/operational approaches that existed prior to the introduction of Core Funding and prior to the standardisation of minimum rates of pay by the independent Joint Labour Committee and the Employment Regulation Orders that they negotiated. Financial reporting requirements under Core Funding was a recommendation of the Expert Group in their report ‘Partnership for the Public Good’ who identified the need for robust data to underpin the funding policy. This Financial Reporting requirement was included in the Core Funding Partner Service Agreement.

For year 1 and 2, the transitional phase, the financial reporting requirements were significantly simplified and streamlined. Specifically, in the transitional phase, the financial reporting requirement is for an income and expenditure report based on a significantly reduced set of Core Funding Chart of Accounts nominal codes. The change from a trial balance (the original requirement and the requirement for year 3), which would capture the accountancy elements referenced by the Deputy, to an income and expenditure template was following constructive engagement with members and nominees of the Early Learning and Childcare Stakeholder Forum (ELCSF) provider representatives and accountancy bodies.

Capital expenditure, with the exception of capital equipment expenditure, was not included on the transitional financial reporting requirements as per the request of the members of the representative groups on the Early Learning and Childcare Stakeholder Forum, however loan repayments, including costs of loans related to the premises from which the service operates from are included in the Income and Expenditure report. The viability surplus of 9% which is added to the costs of the individual services that have been provided by the service and should therefore be reflective of lease and property purchase costs associated with the service. Non premises capital expenditure by nature is a once off expense and the purpose of the Fee Increase Assessment process for the current programme year is to ensure that services can viably cover their operational costs at service level.

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 the Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed while remaining within Core Funding.

Emer Currie (Dublin West, Fine Gael)
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266. To ask the Minister for Children, Equality, Disability, Integration and Youth if she has, since taking office, examined the current overall funding model for formal childcare services in Ireland; if she believes that the model requires reform; if it will be formally reviewed; and if she will make a statement on the matter. [16268/25]

Norma Foley (Kerry, Fianna Fail)
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An Expert Group was convened in 2019 to review the funding model for early learning and childcare and make recommendations for a new funding model. The Expert Group engaged in a widespread programme of stakeholder consultation as part of this two year project, engaging with parents, providers, the workforce, and other stakeholders.

In December 2021, Government adopted all 25 recommendations contained in an Expert Group report, Partnership for the Public Good: A New Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC).

The funding model – Together for Better – was launched in September 2022 and comprises existing strands of funding (the Early Childhood Care and Education (ECCE) Programme, the National Childcare Scheme (NCS), the Access and Inclusion Model (AIM) and two new strands of funding – Core Funding and Equal Start.

The existing strands of this funding model have been subject to on-going review

An independent review of the ECCE programme, conducted by Stranmillis University Belfast, was published in 2024.

An independent review of the NCS was conducted and published in 2021 by Frontier Economics, with plans underway to commission another review of that Scheme later this year.

An independent review of AIM was published in 2019 (by RSM Limited) and again in 2024 (by the University of Derby).

In addition, there is a commitment to commission an independent review of Equal Start once it is in place three years.

Moreover, since Core Funding was introduced in 2022 bringing a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, the effectiveness of the scheme in meeting its objectives has been subject to ongoing review and the scheme itself has evolved year on year.

Core funding increased by 11% to reach €287 million for the second year of the scheme (September 2023 to August 2024), with the allocation of this additional funding in year 2 of the scheme was informed by the emerging data from Year 1 as well as data from an independent financial review of sessional services and feedback from stakeholders. In year 2, new targeted supports - aimed at improving the sustainability of smaller and sessional services – were introduced. These include a flat rate allocation of €4,075 for all sessional-only services, and a minimum base rate allocation of €8,150, which will benefit small, part time and school-age services.

Core Funding increased by another 15% to €331 million for the current and third year of the scheme (September 2024 to August 2025). Again, the allocation of this additional funding in year 3 of the scheme was informed by the emerging data from previous years as well as feedback from stakeholders. Targeted supports for small and sessional services in Year 2 of Core Funding were enhanced in Year 3. Specifically, the flat rate allocation was set at €5,000 (increased from €4,075 in Year 2) for sessional-only services, and the minimum base rate allocation was set at €14,000 (increased from €8,150 in Year 2). Moreover, while the fee freeze continued in Year 3 for most services, and in response to concerns raised by some providers, there was also changes to fee management in Year 3, including:

• A fee increase process for certain providers
• A fee cap

Emer Currie (Dublin West, Fine Gael)
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267. To ask the Minister for Children, Equality, Disability, Integration and Youth the overall breakdown of State, parent and other expenditure in the childcare sector in Ireland, each year from 2019 to 2024 and to date in 2025, including total overall expenditure, in tabular form; and if she will make a statement on the matter. [16269/25]

Norma Foley (Kerry, Fianna Fail)
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My Department funds a broad range of Early Learning and Care (ELC) and School Age Childcare (SAC) schemes, including the Early Childhood Care and Education (ECCE) Programme, National Childcare Scheme (NCS), Access and Inclusion Model (AIM), Equal Start, and Core Funding.

A range of supports are also provided to improve the quality of ELC and SAC services, through the Better Start National Early Years Quality Development Service, City and County Childcare Committees and other Support Organisations, with funding also provided to ensure the appropriate administration of State funding.

The table below provides my Department’s expenditure on ELC and SAC between 2019 and 2024.

Expenditure on the Early Learning and Care and School Aged Childcare Sector

The 2025 budget allocation of €1.37 billion for ELC and SAC reflects an ongoing commitment to increase investment in the sector, which will continue to improve affordability for parents, facilitate capacity growth, and provide additional supports for children and families who are experiencing disadvantage. The table below provides a breakdown of the 2025 budget allocation. Expenditure figures for 2025 will not be available until year end.

2025 Budget Allocation for the Early Learning and Care and School Aged Childcare Sector

Financial returns are currently being submitted by Core Funding Partner Services for the 2023/24 programme year, which details their income and expenditure during this programme year. These submissions will be analysed by officials in my Department, which should provide up to date insights on the income sources and cost drivers of services. For year 1 and 2, the transitional phase, the financial reporting requirements were significantly simplified and streamlined. Specifically, in the transitional phase, the financial reporting requirement is for an income and expenditure report based on a significantly reduced set of Core Funding Chart of Accounts nominal codes. The change from a trial balance to an income and expenditure template was following constructive engagement with members and nominees of the Early Learning and Childcare Stakeholder Forum (ELCSF) provider representatives and accountancy bodies. From next year (year 3 of Core Funding), Partner Services will be required to submit a trial balance, which will help my Department to better understand the financial operations of services.