Barry Ward (Dún Laoghaire, Fine Gael)
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919. To ask the Minister for Children, Disability and Equality her views on the adequacy of the aspect of the core funding childcare scheme, related to the time thresholds for each band (details supplied); the actions she will take to address these concerns; and if she will make a statement on the matter. [63355/25]

Norma Foley (Kerry, Fianna Fail)
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Core Funding is a supply-side payment to early learning and childcare services to support them with their operating costs, and is designed to support affordability, quality and sustainability in the sector. Core Funding has 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.

An allocation of over €405 million for the Scheme was secured in Budget 2026. This is an increase of €52 million on the 2025 allocation of €353 million – representing a 15% year-on-year increase and a 56% increase over the 2022 allocation of €259 million.

A key feature of Core Funding is the introduction of a system of fee management, to ensure that affordability measures and increased investment are passed on to parents/guardians. This began with an effective fee freeze from September 2022. In return for significant funding through the scheme, Partner Services agree not to raise their fees above what was charged to parents as on 30 September 2021. Maximum fee caps were then introduced for new entrants beginning in Year 3 of the Scheme. The maximum fee caps have since been reduced and extended to all new and existing Partner Services in Year 4.

The Department is aware that there has been some confusion in relation to the new maximum fee caps regarding the fee bands. In the press release issued on 5 June 2025, it was announced that the new maximum fee caps are facilitated by the Common Fee Structure, which organises Service Types by weekly hours into six Fee Bands, from Band A (less than 10 hours) up to Band F (50 hours or more).

Each Fee Band in the structure has a corresponding maximum allowable fee under Core Funding. This is reflected in the quote above as “a full day place of between 40-50 hours per week” when using Band E as an example of a typical full day care place. Statutory regulations categorise full-time provision as anything more than five hours per day, or 25 hours per week. Most full-day services fall into Band E and this is why Band E was used as the reference point in this instance.

As demonstrated in the Fee Cap Table included in the press release, and featured below, full day care consisting of 50 or more hours per week is capped at €354, or €257.70 when NCS subsidies are applied.

Fee caps are stepped down on a pro rata basis, meaning there is a maximum amount a service can charge at each Fee Band, from Band A (less than 10 hours per week) up to Band F (50 hours or more per week). The hours per week and associated maximum fee at each Fee Band refer to the care purchased by a parent for their child on a weekly basis.

For example, if a child is enrolled in a childcare afterschool session within a Core Funding Partner Service that runs for anywhere between 20 hours and 29 hours 59 minutes per week, then this falls under Band C as per the above. The maximum fee that could be charged for care under Band C is €177 per week. The out-of-pocket cost, or copayment, is dependent on the number of National Childcare Scheme (NCS) subsidy hours availed of. This subsidy is available at a rate of €2.14 per hour, up to 45 hours per week.

The Government is committed to ensuring access to affordable, quality early learning and care (ELC) and school-age childcare (SAC), with an investment of €1.48bn in the 2026 budget. This funding will allow the Department to build on recent progress in the gradual reduction of fees for parents, while also supporting supply and the quality of provision. New caps on maximum fees came into effect in September 2025 for all services in Core Funding, building on a range of enhancements to the National Childcare Scheme and Core Funding in recent years, reducing fees to parents.

Fee caps on all Partner Services represent the latest progression in the phased development of the Core Funding fee management system, with further improvements planned for the years ahead.

The landmark investment through Budget 2026 includes €20.6 million in brand new funding for a full programme year to support providers in adhering to the fee management conditions, including reductions in the maximum fee caps in Year 5.

More broadly, the Government has committed to reduce monthly fees to €200 over its lifetime. The steps in achieving this ambition over the coming years will be set out in the Action Plan on Accessible, High Quality, Affordable Early Learning and Care and School-Age Childcare, which the Department is continuing to develop. In line with the commitment in the Programme for Government, the Action Plan will be informed by a broad consultation process.

Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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920. To ask the Minister for Children, Disability and Equality if she will address concerns regarding the escalating cost of childcare, raised in correspondence (details supplied); and if she will make a statement on the matter. [63356/25]

Norma Foley (Kerry, Fianna Fail)
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The Government has committed to reduce monthly fees to €200 over its lifetime. The steps in achieving this ambition over the coming years will be set out in the Action Plan on Accessible, High Quality, Affordable Early Learning and Care and School-Age Childcare, which the Department is continuing to develop. In line with the commitment in the Programme for Government, the Action Plan will be informed by a broad consultation process.

While work on developing the Action Plan is ongoing, we are not waiting until its publication to deliver on key commitments in the Programme for Government. The investment of €1.48bn secured in the 2026 budget for early learning and care and school-age childcare will allow the Department to build on recent progress in the gradual reduction of fees for parents, while also supporting supply and the quality of provision.

Budget 2026 enables Core Funding to continue to support fee-control measures and will also allow for growth in the sector. The allocation for Core Funding in 2026 will ensure fees remain at 2021 levels for a majority of providers. As well as this, there will be a new maximum fee cap set to reduce costs for families paying the highest fees across the country. Further details of the new, lower maximum fee caps will be announced in the coming months.

The 2026 allocation for Core Funding will also support implementation of the recently announced Employment Regulation Orders, which led to a 10% increase in the minimum rate of pay for educators from 13 October.

Further steps will be detailed in the Action Plan, which will look at affordability, access and quality of the early learning and care and school-age childcare system.

One of the main vehicles for delivering the Programme for Government’s affordability commitments is the Core Funding scheme. Core Funding is a supply-side payment to early learning and childcare services to support them with their operating costs, and is designed to support affordability, quality, and sustainability in the sector.

A key feature of Core Funding is the introduction of a system of fee management, to ensure that affordability measures and increased investment are passed on to parents/guardians. This began with an effective fee freeze from September 2022. In return for significant funding through the scheme, Partner Services agree not to raise their fees above what was charged to parents as on 30 September 2021. Maximum fee caps were then introduced for new entrants beginning in Year 3 of the Scheme. The maximum fee caps have since been reduced and extended to all new and existing Partner Services in Year 4.

Work is under way in the Department to design new fee management measures for Year 5. Full details of Core Funding 2026/27 will be made available to the sector in 2026.

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. 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.

A forward planning model is in development which will be central to the 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.

As announced in the context of Budget 2026, €36 million will be available in 2026 for early learning and childcare capital programmes. This will include acquisitions of new buildings through the State-led early learning and childcare programme, investment in expansion of existing early learning and childcare operators through the Building Blocks scheme and a number of quality initiatives including supports to childminders.

The 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 fourth programme year, funds services based on the number of places available.

Budget 2025 secured funding for the fourth programme year (2025/6) to facilitate a further 3.5% increase from September 2025. Budget 2026 has made provision for the fifth programme year (2026/7) for a further expansion in supply of 4.2%.

The Building Blocks Extension Grant Scheme was launched in late 2024 with a closing date in January 2025. A total of seventy-eight applications were received with fifty applicants approved to progress to the next stage of the grant process. The scheme will deliver up to 1,500 places from next year.

With reference to your constituent’s query on The National Childcare Scheme (NCS), an evaluation of the 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 to help parents with their childcare costs. The findings from this evaluation will also inform the work of the Department in working towards the Programme for Government commitment to monthly childcare fees over the lifetime of this Government.