Shane Moynihan (Dublin Mid West, Fianna Fail)
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541. To ask the Minister for Children, Disability and Equality if her Department will consider adjusting core funding allocations for services caring for children aged zero to one years of age in recognition of the higher staffing ratio of 1:3 and to incentivise the creation of additional baby room places to meet growing demand; and if she will make a statement on the matter. [49813/25]

Norma Foley (Kerry, Fianna Fail)
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A key priority of my Department is to support improved accessibility to childcare places, including capacity for babies and toddlers. Core Funding has served as a key vehicle in addressing this insufficiency of supply and making the provision of these places more attractive.

Since its introduction in 2022, Core Funding has provided increased levels of funding to services delivering care to these age ranges, to support these services to meet the higher operational costs created by the higher ratios set out in regulations, and to incentivise increased capacity for babies and younger children under three.

This funding is distributed through the Core Funding base rate which has been incrementally increased over the programme years. The hourly rate underpinned by a place for an individual baby aged 0-1 years for the new programme year (2025/2026) is €1.90 – this represents a 14.5% increase in the hourly rate for this age group, when compared to the 2022/2023 programme year.

Early learning and childcare capacity is increasing. Data from the Annual Early Years Sector Profile 2023/2024 shows that the estimated number of enrolments increased by 19% from two years previously. 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 Care and School Age Childcare remains higher than available supply, particularly for younger children and in certain parts of the country.

The Programme for Government commits to resourcing and transforming the Supply Management Unit into a Forward Planning and Delivery Unit within my Department to identify areas of need, forecast demand and deliver public supply within the childcare sector where required.

The Forward Planning and Delivery Unit within this Department has now been allocated additional resources and staff and is pursuing an ambitious programme of work. A forward planning model, under the remit of this unit, is in development which will be central to this 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.

The forward planning model being developed draws on administrative data to map the child population and location of funded services, and GIS mapping tools to model the link between children and services. This will enable the Department to identify areas of need and model the benefits associated with proposed interventions. It will be used to inform future interventions and decisions on supply requirements, including investment decisions.

Although higher levels of funding for an individual place are offered for younger age ranges, an individual staff member can ultimately underpin higher amounts of funding for places which cater to older children. While expansion in provision for the older age ranges is welcome and needed, officials in this Department will continue to assess the need to increase funding for the younger age ranges, using the best data available to them to make evidence-informed decisions.

It should be noted that a key strategy of First 5: A Whole-of-Government Strategy for Babies, Young Children and their Families is to facilitate parents to care for their child at home during the first year. Research indicates this is preferential in terms of children’s outcomes.

As the Government continues to introduce greater supports for parents to avail of more maternity, paternity and parental leave, there is likely to be a reduction in the numbers of very young children in Early Learning and Care. The combined durations of Maternity, Paternity and Parents’ Leave and Benefit now equate to 46 weeks’ paid leave for a two-parent family. This is supplemented by an entitlement to 16 weeks of unpaid Maternity Leave, 26 weeks of unpaid parental leave per parent, as well as annual leave entitlements.

Such progress is welcome and further supports will be considered in the context of the development of the new First 5 Implementation Plan for 2026-2028. This is in line with the Programme for Government commitments to both examine the extension of Parent’s Leave and Benefit, and to introduce Pay Related Parent’s Benefit (and to explore other payments where a similar model could be applied).