Norma Foley (Kerry, Fianna Fail)
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In 2018, Crowe was commissioned by the then Department of Children and Youth Affairs to undertake an independent review on the cost of providing quality early learning and childcare (ELC) in Ireland. The brief for the Review included:

• analysing the current costs of providing ELC and the factors that impact on these costs;
• the development and delivery of a model of the unit costs of providing ELC that allows analysis of policy changes and variation in cost-drivers, including the potential impact of professionalisation; and
• providing an objective, high-level market analysis of the ELC sector in Ireland, including analysis of fee levels charged to parents.

The project has provided a robust evidence base for the development of policy and implementation of initiatives to support the delivery of high quality ELC in Ireland.

The final report, Independent Review of the Cost of Providing Quality Childcare Services in Ireland, was published in 2020. The draft final report, cost modelling tool and guidance were subject to peer review.

This review found that, on average, 60% of the income to the sector is from public funding although this varies substantially across the sector, meaning 40% of income came from private sources – primarily parental fees.

Data on provider income and cost was also collected in 2021 and 2022 by Pobal to enable similar analysis. Analysis of data collected in 2021 shows broad consistency with 2018 data.

Core Funding was introduced in September 2022, and one of the key conditions of receiving this funding is transparent financial reporting. Partner Services, those services signed up to Core Funding, are required to provide validated financial returns to the Department for each programme year that they participate in. As part of a transitional arrangement, the reporting requirement for the first two years of the scheme, 2022/2023 and 2023/2024, were reduced to require just an income and expenditure report. These reports were submitted by registered accountants. The deadline for submission of the 2023/2024 returns was 18 April 2025, however the functionality remains in place for a small number of services to submit their overdue income and expenditure reports.

Early insights from the 2023/2024 submissions suggest that roughly 30% of income reported between 1 September 2023 and 31 August 2024 originated from parental fees. The universal subsidy under NCS was €1.40 per hour for the duration of this reporting period, increasing to €2.14 from September 2024. Investment in Early Learning and Childcare in 2023 was €1.025 billion, exceeding the First 5 target investment five years ahead of schedule. In 2024, investment in this sector increased to €1.1 billion.

Investment in Early Learning and Care Childcare is now at unprecedented high levels, with €1.37 billion provided in Budget 2025. This investment provides for improved affordability for parents, capacity growth within the sector and provides additional supports for children and families who are experiencing disadvantage. This is a further investment of €266m, or 24% on 2024, with a continued freeze on fees for the majority of parents.

Officials are currently preparing for an analysis of the data from the 2022/2023 and 2023/2024 validated financial returns with a view to publishing a report outlining aggregate insights by the end of quarter 1 2026. It is intended that this report will include county breakdowns of key insights, including sources of income.