Emer Currie (Dublin West, Fine Gael)
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1953. To ask the Minister for Children, Equality, Disability, Integration and Youth for an update on Programme for Government commitments since taking office to review and increase core funding for childcare providers;; and if she will make a statement on the matter. [16252/25]

Norma Foley (Kerry, Fianna Fail)
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Since Core Funding was introduced, the effectiveness of the scheme in meeting these objectives has been subject to ongoing review and the scheme itself has evolved year on year.

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. 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.

Core Funding increased by another 15% to €331 million for the current and third year of the scheme. 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, which increased from €4,075 in year 2 for sessional-only services, and the minimum base rate allocation was set at €14,000, which 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 were also changes to fee management in year 3, including a fee increase process and the introduction of a fee cap.

Budget 2025 makes additional funding available for year 4 of Core Funding. These increases will bring the full year allocation for year 4 of Core Funding to €350.64 million. A further €45 million for the full 2025/2026 programme year has been ring-fenced specifically to support employers to meet the costs of further increases to the minimum rates of pay in the sector. Combined, and contingent on the third successive Employment Regulations Orders, the Core Funding allocation will exceed €390 million in year 4. Again, the allocation of this additional funding in year 4 of the scheme is being informed by the emerging data from previous years as well as feedback from stakeholders.

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.