Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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846. To ask the Minister for Children, Equality, Disability, Integration and Youth the action being taken by her Department in relation to core funding given the feedback of many providers and the closure of a high number of childcare facilities due to funding issues; and if she will make a statement on the matter. [17551/25]

Norma Foley (Kerry, Fianna Fail)
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Core Funding, which was introduced in 2022, operates alongside all other early learning and childcare programmes and constitutes additional income to services on top of these programmes, and parental fees.

The scheme is designed to meet the combined objectives of:

• Improved affordability for parents through the introduction of fee management
• Contractual requirements on providers to offer the National Childcare Scheme and/or the ECCE programme
• Improved quality through better pay and conditions for the workforce by supporting agreement on an Employment Regulation Order through the Joint Labour Committee;
• Supporting the employment of graduate staff; and
• Improved sustainability and stability for services.

My Department continues its engagement with the sector via feedback sessions with service providers, Pobal, the scheme administrator and also County/City Childcare Committee's. 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.

As a result of such extensive engagement and feedback, key achievements of the scheme to date include:

• High participation rates among services, with 93% of providers participating in year 3 of the scheme and a higher number of providers in absolute terms when compared to previous years;
• A fee freeze in the majority of services;
• A 29% increase in the number of services offering the NCS since 2022;
• Supported the agreement of Employment Regulation Orders in 2022 (that resulted in improved pay for more than 70% of those working in the sector) and again in 2024 (that resulted in improved pay for more than 50% of those working in the sector)
• Extended support for graduate-led provision outside the ECCE programme, with almost 3,000 services now receiving Graduate Premiums;
• Improved stability of funding for services contributing to the lowest number of service closures in the last 6 years; and
• A significant expansion of capacity, with analysis showing the increased capacity is the type of capacity that is in highest demand relative to supply.

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.

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).

However, services whose fees have been frozen at a level that may not be sufficient to sustain their business, even with increased funding available through Core Funding, had the opportunity to apply for a Fee Increase Assessment.

Only services currently charging low fees (fees below the average in their county) were eligible to apply.

The Fee Increase Assessment process must balance 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 Public Good service for their community.

As per data received on 28 March 2025 from Pobal, the scheme administrator, since the introduction of Core Funding in 2022, a total of 11 services who have withdrawn from Core Funding have closed their doors.

Tusla, the independent statutory regulator for early years services, including pre-school, childminding and school age services, is responsible for maintaining the register of services under the Child Care Act 1991. Where an early years service ceases operation, the registered provider is required by law to advise Tusla of this and the service will then be removed from the public register. Tusla provides my Department with the verified figures on new service openings and closures a month in arrears. This allows time for verification. The most recent available figures are therefore up to the end of February 2025.

Every year, while some services close, new services open. During 2024 there was a net increase of 226 in the total number of pre-school and school-age services. Below is the data from 2020 on, provided by Tusla.

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.

This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, financial support for services, as well as more specialised advice and support appropriate to individual circumstances.

These supports can be accessed by any Core Funding Partner Service by contacting their local County/City Childcare Committee.

The new Programme for Government, which was published on 15 January 2025, commits to review and increase Core Funding, ensure that providers’ fees are open, transparent and equitable and readily available to parents, and to maintaining the fee cap.