Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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174. To ask the Minister for Children, Disability and Equality if she will provide an update on the application by Glanmire, County Cork to the recently announced public childcare fund; and if she will make a statement on the matter. [29091/26]

Norma Foley (Kerry, Fianna Fail)
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I recently announced €135 million in capital investment in buildings for high-quality, accessible State-led early learning and childcare. The process will begin in 2026 with investment in buildings in what will be a ground-breaking initiative for this government. Capital funding will be used to acquire and/or fit out the building, depending on requirements.

Up to eight buildings will be selected for investment this year and the State-led initiative will provide thousands of places up to 2030 using the €135 million provided in the National Development Plan. The level of investment will ramp up over the lifetime of the Government.

There will be a particular focus in the new State-led facilities on providing places for 1–3-year-old children, with capacity for these children to continue in the service until they start school, because this is where the need is greatest. The aim of delivering additional supply of this type in suitable locations will include both rural areas and urban areas which are not well served at the moment.

A suite of appraisal tools have been developed, including a forward planning model, in order to select projects that align with programme objectives. Local City and County Childcare Committees will be supporting the development of projects. In the first instance, anyone who might have a suitable premises or project is requested to contact their local City/County Childcare Committee.

Cork City CCC has submitted a preliminary appraisal form relating to a project located in Glanmire which, along with other preliminary appraisal forms currently received, is under consideration at the moment.

No final decisions have yet been made on the specific projects, but I look forward to sharing details of projects as they are agreed.

Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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175. To ask the Minister for Children, Disability and Equality to outline the proposals to address the gap in levels of funding for childcare against the increased costs borne by providers. [29118/26]

Norma Foley (Kerry, Fianna Fail)
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Core Funding offers supply-side funding to services to support them with their operational costs. Core Funding operates alongside all other early learning and childcare programmes and constitutes additional income to services on top of these programmes (and parental fees) towards their operating costs.

When first introduced in 2022, Core Funding had an annual allocation of €259 million, of which €210.8 million was entirely new funding to the sector.

That annual allocation has increased each year since and exceeds €390 million for the fourth and current year of Core Funding. This represents an increase of over 50% in Core Funding in three years. The additional funding is supporting further capacity growth, and significant improvements to pay and conditions in this valued sector.

Within the Core Funding allocation for the 2025/26 programme year, €45 million has been ringfenced to support employers in meeting the costs of further increases to the minimum rates of pay in the sector, as set out under the Employment Regulation Orders.

This ringfenced allocation supports an average 10% increase to minimum hourly rates of pay for all roles outlined in the Employment Regulation Order that came into effect on 13 October 2025.

The allocation for Core Funding for year 5 of the Scheme will increase again by 23% to over €480 million. This allows us to support further improvements in pay for staff, and support services in adhering to reduced maximum fee caps from September 2026 – ensuring sustainability and stability for the sector.

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.

Core Funding 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.

The Department will explore further changes for year 5 of the scheme – from September 2026 - based on the operation of year 4 of the Scheme as well as stakeholder input and income and cost data from providers.

Full details of Core Funding 2026/2027 will be made available to the sector in the coming months.

The Department will also continue to oversee the Case Management process through which local City/County Childcare Committees and Pobal work together to assess and provide support to early learning and care services experiencing difficulties.

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

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. Any service experiencing financial difficulty and who would like support should contact their CCC to access case management supports.

I am confident in the adequacy of Core Funding in supporting the sector to meet rising costs.