Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1567. To ask the Minister for Children, Disability and Equality the percentage of early years and SAC services that have signed up to the current core funding scheme 2025-2026; and the way in which that percentage relates to previous years. [59495/25]

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1568. To ask the Minister for Children, Disability and Equality in relation to services that have chosen not to participate in core funding if any work is being carried out to collate the reasons these services have chosen not to sign up to core funding; if not, if she will consider collating this data to ascertain that the reason services have not signed up to core funding is available; and if she will make a statement on the matter. [59496/25]

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

I propose to take Questions Nos. 1567 and 1568 together.

The percentage of early learning and childcare services signed up to Core Funding depends on the base number of total eligible services, which fluctuates each year and throughout the year. For this reason, percentage of uptake does not reflect a fixed quantity and is not a reliable indicator of the overall number of services signing up to Core Funding.

As of 31 October 2025, 4,520 services, out of a total of 4,896 eligible services, are signed up to the fourth year of Core Funding (September 2025 – August 2026). This represents 92% of all eligible services. This is the highest number of services signed up to Core Funding since it was launched in 2022.

On this same date last year, 4,280 services had signed up to Core Funding, out of a total 4,710 eligible services. This represents nearly 91% uptake among eligible services; however, the overall pool of eligible services was smaller.

The table below compares the number and percentage of services in Core Funding with previous years.

Year 4 of Core Funding has seen more services operating in the sector than at any previous time.

Core Funding remains open year-round to applicants and we will continue to see this number grow.

I am aware that a small number of service providers have regrettably chosen to withdraw from Core Funding.

If a Partner Services wishes to withdraw from the Core Funding Programme, they must provide 3 months’ notice to the Scheme Administrator. This must be done by submitting a Service Request on the Early Years Early Years Hive outlining the withdrawal date and the reason for the withdrawal.

However, if an existing Partner Service decides not to enter a contract for the new programme year starting on September 1, they, as private businesses, would no longer be subject to the provisions of the Core Funding Agreement and, by extension, the required minimum notice period to parents. They are also not required to provide a reason for choosing not to reapply for Core Funding to the Scheme Administrator.

In relation to withdrawals specifically, services may choose to leave the scheme mid-year for a multitude of reasons including being denied a fee increase, temporary closures, financial difficulties, administrative requirements and personal reasons such as retirement. Many services have left and later re-joined the scheme.

The Department is committed to ongoing engagement on this matter.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1569. To ask the Minister for Children, Disability and Equality the status of the proposed core funding evaluation; the terms of reference for the evaluation; and the time period that evaluation covers. [59497/25]

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

An evaluation of the first year of Core Funding and the development of an evaluation framework for Core Funding is currently underway. This project will examine the early implementation of Core Funding and make recommendations for future evaluations of the grant. Findings from the project are expected in Quarter 4 2025.

More specifically, this paper will present an analysis of the first year of Core Funding, activities, and expenditure – covering the period of 15 September 2022 to 31 August 2023. Furthermore, it will set out an evaluation framework for Core Funding so that subsequent medium and long-term evaluations can ensure the scheme is meeting its intended objectives and that it is an efficient use of exchequer funding. Where relevant, it will also highlight data gaps that exist, and further data that may require collection to comprehensively evaluate the scheme.

This project is being undertaken by Irish Government Economic and Evaluation Service or IGEES policy analysts working in the Research and Evaluation Unit of the Department.

IGEES is an integrated cross-government service established in 2012 with the objective of enhancing the role of economics and value for money analysis in public policy making. It is part of the Department of Public Expenditure, NDP Delivery and Reform.

It is envisaged that the future evaluations have a broader scope and will be governed by a steering group. The terms of reference for future evaluations will be informed by the recommendations arising from the evaluation of the first year of the grant.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1570. To ask the Minister for Children, Disability and Equality the status of the NCS review and the terms of reference for that review; and her views on same. [59498/25]

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

The evaluation of the National Childcare Scheme (NCS) is due to start in the coming months. This evaluation will examine how the Scheme has performed to date and a Request for Tender will be published in November 2025.

The purpose of the evaluation is to answer the following research questions:

1. Is the NCS, as part of the wider funding model, making high quality early learning and childcare more accessible and affordable for all children, but especially children in lowest income groups/most disadvantaged households

2. How has the NCS been impacted by the wider early learning and childcare funding and policy environments

3. Is the NCS facilitating labour market participation, in particular female labour market participation across all income groups

4. Are there improvements to the NCS to improve accessibility and affordability for families, especially those in the lowest income groups/most disadvantaged households

The final evaluation report will inform potential enhancements to the NCS, to continue to support families with their early learning and childcare costs.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1571. To ask the Minister for Children, Disability and Equality if she will consider, in line with recommendation 7 of the Oireachtas Joint Committee on Children, Equality, Disability, Integration and Youth report on challenges facing the ECEC sector (March 2024), unification of the existing funding schemes. [59499/25]

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

Core Funding is a supply-side grant to early learning and childcare providers towards their operating costs. It is designed to deliver:

• Affordability for parents through ensuring no increases in fees and offering NCS and ECCE to all eligible children;
• Quality in services, including through better terms and conditions for staff and supporting graduate leadership in services; and
• Sustainability for providers through substantially increased funding to the sector, paid on a consistent and equitable basis.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1572. To ask the Minister for Children, Disability and Equality whether consideration has been given to reviewing the entire funding system as a whole, inclusive of the following annually accessible funding streams: ECCE, NCS, LINC, AIM, Core Funding and Graduate Uplift; if she will consider a whole-picture review instead of the current pattern of reviewing each scheme separately; and her views in relation to same. [59500/25]

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

In 2021, Government approved the recommendations of Partnership for the Public Good, a report on a new funding model for early learning and care. This report was prepared by an Expert Group, which was independently chaired and included national and international experts in ELC and SAC systems, funding and quality; economics; and relevant policy experts from the Government Departments involved in implementing the new funding model.

According to the group’s terms of reference, the group was asked to review the overall approach to funding early learning and childcare services. Included in scope was the total funding package, including the interaction between the existing major funding schemes and new funding approaches, changes to existing funding schemes, and new criteria for allocating funding.

The development of the new funding model was supported by a significant programme of research. The research partner of the Expert Group produced a series of working papers examining Ireland’s approach to this sector in an international context. The Group also engaged in an extensive and detailed stakeholder consultation process.

The new funding model, Together for Better, comprises four elements – Core Funding, Equal Start, the ECCE programme, and NCS. As articulated by the Expert Group, these funding streams form an interlocking and integrated model of funding. Implementation of the recommendations commenced in 2022 and significant progress has been made each year in delivering the recommended reforms. These reforms have been guided by the overall vision of the report to develop a sector that is increasingly publicly funded and publicly managed, delivering a service for the public good, through a partnership between the State and providers, to the benefit of children, parents, practitioners, and society overall.

The Programme for Government outlines the commitment to "undertake a broad consultation and publish a detailed Action Plan to build an affordable, high-quality, accessible early childhood education and care system".

Officials in the Department are continuing to develop this Action Plan which will look at affordability, access and quality of the early learning and care and school-age childcare system. These three attributes – affordability, accessibility and quality – are closely connected and the ways in which they interact is complex. It will be essential that we make progress in all three areas in parallel in order to deliver on our vision. Officials are working on an integrated approach to minimise the risk of unintended consequences and to identify opportunities to address multiple policy challenges at the same time.

Officials in the Department are also developing plans for the broad consultation with stakeholders.

I will provide further detail on the Action Plan and the consultation process at the earliest opportunity

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1573. To ask the Minister for Children, Disability and Equality if any changes to the ECCE scheme are to be expected, in line with the recommendations of the independent review of the ECCE programme in Ireland (April 2024), the enhancement of daily hours or improved ratios for younger children; and her views in relation to same. [59501/25]

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

As noted by the Deputy, an independent review of the ECCE Programme was completed in 2024. The final report was published last October. The review examined how the Programme is currently functioning and overall, the report indicated the remarkable success of the ECCE programme which has transformed early learning experiences and development opportunities for young children in this country.

The review also identified possible enhancements that could be made in the future. Officials in the Department are exploring these enhancements, and the impact of any potential changes on children, parents, educators and providers. Any changes made on the foot of the ECCE review will be informed by further consultation and engagement with these key stakeholders and may be subject to the outcome of future Estimates processes.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1574. To ask the Minister for Children, Disability and Equality the number of services participating in schemes (details supplied); and the percentage of the entire sector that number correlates to, in tabular form. [59502/25]

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

As at September 2025, 4,896 ELC and SAC centre-based services are in contract with the Department to deliver one or more of its schemes/programmes.

Of these centre-based services, 3,857 deliver ELC only or ELC and SAC combined. 1,038 delivers SAC only and the registration status of 1 centre-based service is to be determined.

Some 754 ELC only centre-based services solely deliver the ECCE programme are therefore not required to contract for the NCS.

Some 1,038 SAC centre-based services solely provide SAC and are not eligible to contract for the ECCE programme or avail of AIM.

The breakdown of centre-based services in contract for these schemes is presented in the table below.

There are also centre-based services, registered with Tusla, though not in contract with the Department for any of its schemes/programmes. Some of these may be fully private. Others may be delivering other non-DCDE schemes/programmes such as the Department of Education and Youth Home Tuition Grant Scheme

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context

1575. To ask the Minister for Children, Disability and Equality the financial breakdown of the core funding in relation to the amount of funding out of €390 million core funding that is intended for pay and graduates, in tabular form. [59503/25]

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

I firmly believe the level of pay for early years educators and school-age childcare practitioners should reflect the value of their work for children, families, society and the economy.

The State is not the employer and therefore does not set the pay or conditions for employees in either early learning and care (ELC) or school-age childcare (SAC) services.

However, there is now, through the Joint Labour Committee process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates for ELC and SAC services, which are set down in Employment Regulation Orders. This is an independent process from the Department and neither I, nor officials, have any role in the proceedings of the JLC and any associated negotiated minimum pay rates, the cost of which is borne by the employer.

Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze or reduce parental fees.

The base rates in Core Funding have been developed using the various components associated with the cost of delivery of service provision such as; staff pay and conditions, including contact and non-contact time, holiday pay, sick pay and other employer costs such as pension contributions; administrative staff/time and non-staff overhead costs. These components have been factored into the calculation of the budget for Core Funding since the scheme began in 2022.

Although, the cost of delivery components such as improvements to staff pay have been used to derive the base rates the eligible areas of expenditure of the Core Funding grant are much broader. Partner Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlines in the Funding Agreement. Employment Regulation Orders set out a legal minimum rate of pay which employers in this sector must meet. However it is open to any employer to pay above these minimum rates.

A total allocation of €207m for the first year of the scheme – 2022/2023 – was allocated as a contribution towards supporting improved pay rates across different categories of staff in the sector and was contingent on the sectors first Employment Regulation Orders taking effect.

Core Funding has seen consistent increased State investment to the sector year on year, and is now worth over €390 million in the fourth year of the scheme. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.

The additional funding made available since 2022 was provided to ensure that Partner Services could continue to keep pace with rising costs and facilitate further improvements to pay and conditions. These increases included an additional €4m in graduate funding in the second year of the scheme which was contingent on the removal of the 3 years’ experience criteria in the definition of a graduate in the Employment Regulation Orders and the ring-fenced €45 million made available in 2025.

Although the wider increases were not directly contingent on the establishment of new Employment Regulation Orders, the additional investment was intended to facilitate further improvements to staff pay and conditions whilst operating within the fee management system enforced through Core Funding to improve affordability for families in a sustainable manner.

For this reason, as well as flexibility granted to Partner Services in the utilisation of their Core Funding grant, an exact breakdown of the funding intended to improve pay and conditions and increase graduate leadership in the sector is not possible.

The Programme for Government commitment is to continue to implement Employment Regulation Orders to attract and retain early years educators.