Norma Foley (Kerry, Fianna Fail)
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The Department is fully committed to promoting affordability for parents through Core Funding. One of the primary vehicles through which this is delivered is Core Funding, a a supply-side grant to early learning and childcare providers towards their operating costs. The Scheme is designed to promote affordability for parents and sustainability and stability for providers through increased funding to the sector.

When first introduced in 2022, Core Funding had an annual allocation of €259 million; €210.8 million of which was entirely new funding to the sector. That annual allocation has increased each year since and has exceeded €390 million for the current fourth year of the Scheme. This represents an increase of over 50% in Core Funding in three years.

The Department announced further investment in Core Funding in Budget 2026. The additional funding will see the allocation for Core Funding in the next programme year which begins in September 2026 increase to over €480 million. That is an additional €87.6 million on the current full year allocation, or a 22% increase.

A key condition of receiving the significant State funding that is available through the Scheme requires that a Partner Service adhere to the Core Funding fee management system, which includes a freeze on fees at 2021 levels and fee caps. This is to ensure that the State’s significant investment through the Scheme is not absorbed by unnecessary fee increases.

In addition to the year on year increases in the Core Funding allocation, the Department has made changes to improve the sustainability of providers through, for example, targeted measures for small and sessional services, and a fee increase assessment and approval process for services with fees frozen at unsustainably low rates.

The 2025/2026 Core Funding Partner Service Funding Agreement allows for the recommencement of a further Fee Increase Assessment-type exercise. The details of this undertaking are being developed by the Department and will be made available once finalised.

The Department is conscious of the importance of promoting affordability for parents without compromising the viability of businesses in the sector, and appropriate safeguards are carefully considered during planning for new developments.

The allocation for Core Funding’s fifth programme year will include €20.6m in brand new full-year funding to support services to maintain fee management conditions, such as the fee freeze and new maximum fee caps supporting affordability for parents. This will guarantee that Core Funding’s monetary protections will continue to be passed on to families while ensuring sustainability and stability for the sector.

Full details of Core Funding programme year 2026/2027 will be made available to the sector later this year.

Partner Services facing sustainability concerns can also avail of supports through the Department’s established case management process, through which local City and County Childcare Committees and Pobal work together to assess and provide support including financial support to services experiencing difficulties.

All services are encouraged to avail of these supports if they are facing difficulties with the sustainability of their business. Contact details for the CCCs can be found at the City and County Childcare Committees page on gov.ie.