Aidan Farrelly (Kildare North, Social Democrats)
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1778. To ask the Minister for Children, Equality, Disability, Integration and Youth if she will provide clarity on the mechanism for the roll out of the 45million euro that has been ringfenced for wages; and the way in which it will be distributed in the context of pay in the childcare provider sector. [21094/25]

Norma Foley (Kerry, Fianna Fail)
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The level of pay for staff in the sector does not reflect the value of their work for children, families, society and the economy.

As the State is not the employer of staff in the sector, neither I nor my Department can set their pay or determine working conditions.

The Joint Labour Committee is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in Employment Regulation Orders.

I acknowledge the Joint Labour Committee is independent in its functions, and I do not have a role in its statutory negotiation processes.

However, outcomes from the Joint Labour Committee process are supported by Government through Core Funding which, in the programme year 2025/26 will increase by 6% to €350 million.

An additional €45 million has been ringfenced to support employers meet the costs of further increases to the minimum rates of pay and is contingent on updated Employment Regulation Orders.

This ringfenced funding will be distributed to providers as a new, standalone element of the Core Funding grant calculation. This is to mitigate against the risk of any delays to the establishment of updated Employment Regulation Orders.

Should updated Employment Regulation Orders not be in place on 1 September 2025, the remainder of the Core Funding allocation, comprising the base rates, the graduate premiums and targeted measures for small and sessional services can proceed without delay.

The details of the allocation for Core Funding Year 4 will be published in the coming weeks.

Mark Wall (Kildare South, Labour)
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1779. To ask the Minister for Children, Equality, Disability, Integration and Youth the number of childcare providers who have withdrawn from core funding since 2020; and if she will make a statement on the matter. [21092/25]

Norma Foley (Kerry, Fianna Fail)
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Core Funding was introduced in September 2022.

The Scheme is designed to improve affordability for parents through the introduction of fee management and contractual requirements on providers to offer the National Childcare Scheme and/or the ECCE programme.

The Scheme aims to improve quality through better pay and conditions for the workforce by supporting agreement on Employment Regulation Orders by the Joint Labour Committee.

It also aims to improve sustainability of services.

Over 92% of services are currently signed up in year 3, with applications still open.

Participation in Core Funding is optional, but it remains open to all registered providers subject to their agreement to the terms and conditions of the funding.

As of 7 April, 33 services have withdrawn from Core Funding since its introduction. One of which has subsequently since re-entered the Scheme.

In addition, there are 140 services who remain open and operational, who had previously contracted into Core Funding in year 1 or 2, and have not contracted into Core Funding for the current programme year.

While my Department cannot mandate providers to participate, every effort has been made to carefully design Core Funding to meet the policy objectives including to achieve high levels of participation by providers.

It is a matter for providers to decide whether they wish to withdraw from Core Funding, the significant financial supports it offers to providers and the certainty it gives to parents through the associated fee management measures. However, I am confident that given the level of investment and associated supports, services should not need to take this step.

Where a provider withdraws 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.