Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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816. To ask the Minister for Children, Disability and Equality the reason an early learning centre in Tullow County Carlow (details supplied) was declined for a fee increase. [39073/25]

Norma Foley (Kerry, Fianna Fail)
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In 2024, Core Funding services were allowed to apply for a fee increase. In this Fee Increase Assessment process, Core Funding Partner Services who were charging fees below the county average were eligible to apply to be assessed for a fee increase.

This Fee Increase Assessment process balanced the need of parents for stability with their early learning and childcare costs and the need for providers to operate viable businesses in order to continue providing this Public Good service for their community.

In order to determine a services viability their expenditure must be taken into account, and this expenditure varies from service to service.

My Department officials made a number of key adjustments to the expenditure data in calculating the Full Time Equivalent Fee for a child. A time related adjustment of 5.67% was made, reflecting that the expenditure data available to my Department, related to the 2022/2023 programme year and an adjustment of 9% was made, reflecting a surplus was needed to ensure service viability.

If a service has fees that support their expenditure +15.18%, they were not granted permission to increase. This process is about supporting viability.

However, the outcome of the process was determined by analysis of a service’s financial data, projected enrolments for Year 3 and their existing fee levels. As such, results varied by the individual circumstances of services. Following the conclusion of the process, any increase was certified by the Department in the form of a written decision letter confirming approval.

The process sought to begin addressing disparity within the sector, with some services having been frozen at much lower rates than others following the introduction of the fee freeze in 2021. The county thresholds served to identify these services that may have been frozen at particularly low levels.

The county thresholds were published on announcement of the Fee Increase Assessment process in July 2024, and were based on the average fee being charged at each Fee Band level in each county. To be eligible for assessment, the applicant service had to list at least one fee below their county threshold on their 2024/2025 Fee Table.

Once accepted into the process, the applicant service still needed to demonstrate an objective need to increase their fees through the aforementioned calculation, with only those fees which fell below the thresholds being assessed for an increase.

Please see the County thresholds for Carlow and Fee Bands below.