Erin McGreehan (Louth, Fianna Fail)
Link to this: Individually | In context

126. To ask the Minister for Children, Equality, Disability, Integration and Youth the steps she is taking to ensure pay increases for childcare workers and an increase in core funding to match this. [32393/25]

Norma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context

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. This funding increased by 11% in year 2 (to €287 million). The scheme increased by a further 15% in year 3 (to €331 million).

I secured additional funding of nearly €20 million in Budget 2025 for Year 4 of Core Funding. This brings the full year budget for Core Funding Year 4 to a minimum of €350 million.

In addition, a maximum of €45 million in State funding to support services to meet costs of increased minimum rates of pay in the sector will be made available to services from September 2025 onwards. This maximum of €45 million is contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders.

From September 2025, when year 4 of Core Funding begins, over €390 million will be available through Core Funding. The increased Core Funding available from September facilitates:

• Support for providers in meeting the costs of increases in minimum pay rates as a result of newly negotiated Employment Regulation Orders by the independent Joint Labour Committee;
• Increased funding for early learning and care capacity offered to ensure Partner Services can keep pace with rising costs without needing to increase fees charged to parents;
• An increase to the minimum amount of funding a centre-based service will receive, increasing to €14,400 per year from the current level of €14,000;
• A reduction in the maximum allocation for a services capacity to €450,000 to best spread a limited budget across the entire sector; and
• Funding to support capacity growth of 3.5% across the sector.

James Geoghegan (Dublin Bay South, Fine Gael)
Link to this: Individually | In context

127. To ask the Minister for Children, Equality, Disability, Integration and Youth her plans to reduce the number of childcare providers leaving the core funding model; the means by which she plans to protect parents and children affected; and if she will make a statement on the matter. [32281/25]

Norma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context

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.

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

Over 92% of services are currently signed up to year 3 of Core Funding.

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 the 11 June, 13 services have withdrawn from the current programme year. Of those services 5 submitted an application but withdrew before the programme year began.

As per the latest data, there are 140 services who remain open and operational, who had previously contracted into Core Funding year 1 or 2, and have not contracted into Core Funding for the current programme year.

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 - which will exceed €390 million in year 4 of the Scheme - 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.

Supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City/County Childcare Committees.

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.

Additionally, the Department funds 30 City/County Childcare Committees, which provide support and assist families and early learning and childcare providers. The network of 30 City/County Childcare Committees across the country can assist in identifying vacant places in services for children and families who need them and engage proactively with services to explore possibilities for expansion among services, particularly where there is unmet need.

Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee for assistance.