Pádraig Rice (Cork South-Central, Social Democrats)
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1897. To ask the Minister for Children, Equality, Disability, Integration and Youth if she is aware that providers are having to withdraw from the core funding scheme for early learning and care and school age childcare (details supplied); if she is considering a review of the core funding scheme and increasing the funding provided; and if she will make a statement on the matter. [20408/25]

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 to the sector.

Core funding increased by 11% to reach €287 million for the second year of the scheme (September 2023 to August 2024) and increased by a further 15% to €331 million for the current and third year of the scheme (September 2024 to August 2025). The allocation of this additional funding in year 2 and 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

This process was introduced to ensure that services who have fees which may not be sustainable were given the opportunity to apply for a fee increase. This process closed for applications on 29 November 2024.

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:

Some providers may choose to no longer participate in Core Funding and therefore, as private businesses, they are free to set their own fees.

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

While a service 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.

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.

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.

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.

The scope of that review will be considered in the context of broader and related commitments in the Programme for Government to improve affordability, access, availability and quality.