Written answers

Tuesday, 29 July 2025

Department of Children, Disability and Equality

Childcare Services

Photo of Tom BrabazonTom Brabazon (Dublin Bay North, Fianna Fail)
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2284. To ask the Minister for Children, Disability and Equality the steps being taken to support the financial viability of community-based childcare providers facing rising operational costs. [41161/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
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Investment in early learning and childcare is now at unprecedented levels with public funding exceeding €1.37 billion in 2025, clearly demonstrating Government commitment to this area.

Core Funding has seen consistent increased State investment to the sector year on year, and is set in year 4 to be worth over €390 million contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.

€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.
The Core Funding base rate factors in some key conditions, to ensure services viability, including, costs associated with staff pay, costs associated with administrative staff/time and non-pay costs such as utilities needed to run the service.

Services have flexibility in how they spend their grant, provided it aligns with the approved areas of expenditure outlined in the Core Funding Partner Service Funding Agreement (the Core Funding Contract).

In September 2024, the Department commenced the rollout of Equal Start, a major model of supports to ensure children experiencing disadvantage can access and meaningfully participate in early learning and childcare.

Equal Start is designed to be developed and rolled out in phases. Services with the highest level of need are targeted in the early phases.

Since September 2024, Equal Start settings have been receiving funding for additional staffing hours that can be used to support engagement between the settings and families, as well as other child and family support services. An allocation of more than €11,700,000 was provided for Staffing Supports payments in Budget 2025.

Funding for additional measures will be requested in budgets during the lifetime of Equal Start. Equal Start supports will be fully rolled out in three phases over a five-year period, with full implementation within the lifetime of First 5 – by 2028.

I am confident that there is a sufficient level of investment and associated supports to make participation attractive. Indeed, 99% of community services participate in core Funding.

My Department oversees a system of case management through which local City or County Childcare Committee (CCC) assist services with issues and difficulties that arise.

The sustainability fund for community service providers is a support mechanism introduced to ensure the stability of early learning and childcare services for those participating in the Core Funding model.

This funding, is provided by the Department to services that have identified a particular issue that has serious consequences for their viability. The fund is accessed through a collaborative process involving the service, their local City/County Childcare Committee (CCC), and Pobal, who assess financial eligibility and need.

Once a service engages with their local CCC they will be able to avail of supports through the case management process.

I would encourage any service experiencing financial difficulty and who would like support to contact their CCC to access case management supports. Contact details for the CCCs can be found at www.gov.ie/en/department-of-children-disability-and-equality/campaigns/city-and-county-childcare-committees/ .

Photo of Tom BrabazonTom Brabazon (Dublin Bay North, Fianna Fail)
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2285. To ask the Minister for Children, Disability and Equality the actions her Department is taking to improve pay and working conditions in the childcare sector to address recruitment and retention issues. [41162/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
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I acknowledge many early learning and childcare services report recruitment and retention challenges. In general, these challenges are not caused by insufficient supply of staff, but by high levels of turnover, which is linked to pay and working conditions.

Data from the 2024 Annual Early Years Sector Profile survey shows the national turnover rate for the sector was approximately 25.8%, with 28% of the turnover rate due to staff moving from one provider to another. However, it should also be acknowledged that the number of educators/practitioners working in the sector increased by 10% between 2023 and 2024.

However, while Government is the primary funder of the sector, the State is not an employer of staff and neither I, nor my Department, set pay or working conditions. The Joint Labour Committee process is the mechanism by which employer and employee representatives can negotiate minimum pay rates, which are set down in law through Employment Regulation Orders. Outcomes from the Joint Labour Committee process are supported by Government through Core Funding, which has seen its allocation increase from €259 million in year 1 to €350 million for the coming year 2025/2026. An additional €45 million has been ring-fenced to support employers meet the costs of further increases to the minimum rates of pay. This allocation is conditional on updated Employment Regulation Orders.

Through the Joint Labour Committee process and supported through the Government’s Core Funding scheme, Employment Regulation Orders have been signed into law in September 2022 and June 2024 to progressively increase wage rates in the sector for staff at different grades. The associated increases in minimum rates of pay saw increases for over 70% and 52% of staff working with children in the sector.

In June 2025, new proposals for increases to minimum rates of pay for Early Years Educators and School-Age Childcare Practitioners were put forward by the Joint Labour Committee members. A public consultation on these draft proposals is currently under way as provided for under the Industrial Relations Act 1946.

These proposals are a welcome first step in the process of developing improved Employment Regulation Orders for the sector. The Programme for Government commits to continue to implement Employment Regulation Orders to attract and retain early years educators.

My officials also continue to discuss issues of recruitment and retention with stakeholders through a Sub-Group of the Early Learning and Childcare Stakeholder Forum.

The general consensus of the Group is that pay is the single biggest issue but the Group has identified other actions, which my Department is now following through on, including:

  • a Student Fast-track Process for recognition of studies to work in service out-of-term,
  • the assessment of unfinished qualifications, where people who may have started a relevant qualification but did not get to finish it, can have what they completed assessed for meeting qualification requirements,
  • an agreement to promote careers in the sector.

Photo of Tom BrabazonTom Brabazon (Dublin Bay North, Fianna Fail)
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2286. To ask the Minister for Children, Disability and Equality the plans in place to expand access to crèche and after-school services in the Dublin 3, 5, 9, 13 and 17 areas. [41163/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
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Improving access to quality and affordable Early Learning and Care and School Age Childcare is a key priority of Government.

Early learning and childcare capacity is increasing. Data from the Annual Early Years Sector Profile 2023/24 shows that the estimated number of enrolments increased by approximately 19% from the 2021/22 programme year. Core Funding application data shows that between Year 1 and Year 3 of the scheme, annual place hours increased by over 15%. The Tusla register of services demonstrates a net increase in the numbers of registered early learning and childcare services in 2024. However, it appears that demand for early learning and childcare remains higher than available supply in certain parts of the country, particularly for younger children.

Demand for early learning and childcare beyond sessional pre-school provision is highly elastic and shaped very substantially by families' individual composition, circumstances, and preferences; employment patterns and income; and the price and availability of services.

My Department continues to support the ongoing development and resourcing of Core Funding which has given rise to a significant expansion of places since the scheme was first introduced. Core Funding, which is in its third programme year, funds services based on the number of places available.

This provides stability to services, and reduces the risk associated with opening a new service or expanding an already existing service. For the current programme year, the allocation for Core Funding allows for a 6% increase in capacity. Additional funding was secured in Budget 2025 to facilitate a further 3.5% increase from September 2025, in the fourth programme year.

The Government is also supporting the expansion of capacity through capital funding. The Building Blocks Extension Grant Scheme is designed to increase capacity in the 1–3-year-old, pre–Early Childhood Care and Education, age range for full day care. Core Funding Partner services could apply for capital funding to physically extend their premises or to construct or purchase new premises.

50 applications will be progressing to the next stage of the Building Blocks Extension Grant Scheme. These 50 applications come from a mix of Community Extension (24), Private Extension (7), Community Purchasing (4) and Community Construction (15) projects, which, when completed, will deliver 1,500 additional full time childcare places for 1–3-year-olds. I look forward to seeing how these projects progress over the coming months.

The Programme for Government outlines the wider ambition to build an affordable, high-quality, accessible early childhood education and care system with State-led facilities adding capacity. This includes additional resources for forward planning; the development of a capital programme to invest in state-owned early learning and childcare facilities; co-ordination with the school building programme; supports for services operating within schools; and developing planning guidance to ensure that early learning and childcare buildings are provided and put into use. This work will be supported through capital investment under the revised National Development Plan.

A Forward Planning and Delivery Unit in my Department has been allocated additional staff and is pursuing an ambitious programme of work. A forward planning model is in development which will be central to my Department's plans to achieve the policy goals set out in the Programme for Government to build an affordable, high-quality, accessible early childhood education and care system, with State-led facilities adding capacity.

My Department also 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.

Photo of Tom BrabazonTom Brabazon (Dublin Bay North, Fianna Fail)
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2287. To ask the Minister for Children, Disability and Equality the new supports being considered to help working families access affordable childcare while balancing employment responsibilities. [41164/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
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The Programme for Government commits to “progressively reduce the cost of childcare to €200 per month per child.” This commitment will be achieved over the lifetime of the Government. Initial steps have already been taken. Work is also under way to develop an Action Plan to build an affordable, high-quality, accessible early learning and childcare system, informed by stakeholder consultation. This will include future steps to reduce the cost of early learning and childcare further to €200 per month over the lifetime of the Government.

First 5 is Ireland’s Whole-of-Government Strategy for babies, young children and their families. It focuses on the period of early childhood, from the antenatal period to age five, and takes a joined-up, cross-government approach to supporting babies, young children and their families during these critical early years.

The Strategy has a pivotal focus on providing a broader range of options for parents to balance working and caring. For example, in First 5’s current phase of implementation (2023-2025) the right to request flexible working for parents and carers was introduced through the Work Life Balance and Miscellaneous Provisions Act 2023. Further supports will be considered in the context of the development of the new Implementation Plan for 2026-2028.

Many families currently use the National Childcare Scheme (NCS) to help reduce the cost of early learning and childcare, with almost 220,000 children receiving NCS subsidies in 2024. The NCS is designed to be flexible and responsive to families’ needs, offering subsidies based on an hourly rate, with a maximum number of hours per week depending on family circumstances. This allows for subsidised sessional, part-time, or full-time care arrangements, depending on what best suits the needs of working parents.

The NCS has undergone a number of enhancements in recent years to further improve affordability for parents. These include the extension of the universal subsidy to all children under 15 years of age and two increases to the minimum hourly subsidy, which is now worth a minimum of €96.30 per week for 45 hours.

Children in childminding settings that have come forward for registration, following changes to the childminder Tusla registration requirements last September, can also benefit from NCS subsidies.

In recognition of the continued pressures faced by families balancing employment responsibilities and caring for their children, my Department will shortly begin an evaluation of the NCS . A key focus of this evaluation will be on how the Scheme has performed to date and to identify enhancements to improve the affordability and accessibility of childcare for working families.

Core Funding has seen consistent increased State investment to the sector year on year, and is set in year 4 to be worth over €390 million contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.

The new maximum fee cap, to be introduced for all Partner Services from September 2025, will place a limit on the maximum fees that can be charged across all types of provision.

This will reduce costs for families who are facing the highest fees across the country. The freeze on fees will remain in place for all other services whose fees fall below the new fee caps (90%).

Under these new fee caps, the fee for a full day place – of between 40-50 hours per week, the most common full day care operating hours – will be no more than €295 per week (before State subsidies under the National Childcare Scheme and the ECCE programme are deducted), the fee cap for 50+ hours of care is €354. All of the fee caps will reduce the highest fees at each fee band in the country. The majority of services are already charging far less than the new maximum fees. This is an important step towards the reduction of childcare fees to €200 per month over the lifetime of this Government.

In addition, the fee management system introduced through core funding has made sure the investment in affordability is not absorbed by unnecessary fee increases.

Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee for assistance. For your information, my Department has a list of all Core Funding Partner Services which is updated regularly on the “How to Find a Partner Service” webpage, www.gov.ie/en/department-of-children-disability-and-equality/publications/how-to-find-a-partner-service/.

Photo of Tom BrabazonTom Brabazon (Dublin Bay North, Fianna Fail)
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2288. To ask the Minister for Children, Disability and Equality whether the national childcare scheme is being reviewed to better support lower and middle income families who struggle with the cost of childcare. [41165/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
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The National Childcare Scheme (NCS) provides financial support to help parents to meet the cost of childcare and allow children to access Early Learning and School Age Childcare.

The NCS subsidies are progressive in nature. All families can receive a universal subsidy, but the highest subsides are provided to families with the lowest levels of income through an income assessment process.

Also, the NCS sponsorship subsidy allows designated bodies to refer children to early learning and childcare on child welfare, protection, family support or other specified grounds. This childcare place is funded by the Department without charge to the family.

Significant investment has been made in the NCS in recent years with over €529m allocated in Budget 2025. This investment has allowed my Department to further improve affordability for parents through the Scheme. Enhancements have included the extension of the universal subsidy to all children under 15 years of age, and two increases to the minimum hourly subsidy, which is now worth a minimum of €96.30 per week for 45 hours. The sponsorship subsidy was also increased to €5.30 per hour for children over 1.

In addition, since September 2024 childminders have been able to register with Tusla and take part in the Scheme, and families who use childminders are therefore also now able to benefit from NCS subsidies.

An evaluation of the NCS is due to start this year. This evaluation will review how the Scheme has performed to date and identify potential enhancements that could be made to better support families. The income assessed subsidy will be examined as part of this evaluation. Any changes to the NCS will be informed by a thorough review of international literature and comprehensive stakeholder engagement.

Photo of Tom BrabazonTom Brabazon (Dublin Bay North, Fianna Fail)
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2289. To ask the Minister for Children, Disability and Equality the interdepartmental work being done with the Department of Enterprise, Tourism and Employment to support flexible childcare arrangements for working parents. [41166/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
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First 5 is Ireland’s Whole-of-Government Strategy for babies, young children and their families. It focuses on the period of early childhood, from the antenatal period to age five, and takes a joined-up, cross-government approach to supporting babies, young children and their families during these critical early years. It has a pivotal focus on providing a broader range of options for parents to balance working and caring.

Under First 5, my Department and the Department of Enterprise, Tourism and Employment (DETE) have committed to delivering a right to request flexible working available for parents and carers. The right to request flexible working for parents and carers, which was introduced by the Departments through the Work Life Balance and Miscellaneous Provisions Act 2023, was commenced on 6 March 2024. The right to request flexible work can reduce time spent commuting, facilitate caring arrangements and can enable families to spend more time together.

More broadly speaking, many families use the National Childcare Scheme (NCS) to help reduce the cost of early learning and childcare. Under the Scheme, subsidies are awarded as an hourly rate, with a maximum number of weekly hours for which the subsidy applies.

The scheme enables parents and services to agree on subsidised sessional, part time or full-time care arrangements as required. Discussion and agreement between parents and providers on the provision of childcare hours that suit individual families' needs, are a matter for parents and providers.

The NCS is designed to be flexible, recognising that children’s attendance may vary from week to week. Only if a child consistently attends fewer than their agreed hours for a consecutive 12-week period will the subsidy be reviewed. This system ensures public funds are used efficiently while recognising the real-life circumstances of families.

An evaluation of the National Childcare Scheme is due to start this year. This evaluation will review how the Scheme has performed to date and identify potential enhancements that could be made. Part of this evaluation will examine ways in which the National Childcare Scheme can better support working families and promote flexible working arrangements.

Work is also under way to develop an Action Plan to build an affordable, high-quality, accessible early learning and childcare system, informed by stakeholder consultation. This will set out future steps to reduce the cost of early learning and childcare further to €200 per month over the lifetime of the Government.

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