Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

954. To ask the Minister for Children, Disability and Equality her views on whether the existing core funding model is fit-for-purpose; and if she will make a statement on the matter. [38889/26]

Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

955. To ask the Minister for Children, Disability and Equality her views on whether the core funding model is suitable for childcare centres based in Dublin and other areas where rent is significantly higher; and if she will make a statement on the matter. [38890/26]

Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

956. To ask the Minister for Children, Disability and Equality the position regarding any review of the core funding model to allow for significant discrepancies in operation costs for childcare centres based in Dublin and other areas where rent is significantly higher; and if she will make a statement on the matter. [38891/26]

Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

957. To ask the Minister for Children, Disability and Equality the position regarding any review of the core funding model that would allow for greater flexibility to account for specific circumstances in cases whereby the existing model is forcing providers to leave the scheme; and if she will make a statement on the matter. [38892/26]

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

I propose to take Questions Nos. 954, 955, 956 and 957 together.

Core Funding is a supply-side grant to early learning and childcare providers towards their operating costs. It is designed to promote affordability for parents and sustainability for providers through increased funding to the sector, paid on a consistent and equitable basis.

The introduction of Core Funding in 2022 brought a significant increase in investment for the sector, with €259m of funding paid directly to services in year 1 of the scheme, and it is important to note that €210.8m of this was entirely new funding.

The annual allocation has increased each year since and has exceeded €390 million for year 4 of the Scheme, which started in September. This represents an increase of over 50% in Core Funding in three years.

Further investment in Core Funding was announced in Budget 2026. The additional funding being made available in 2026 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 €90.1 million on the current full year allocation, giving rise to a significant increase of 23%.

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 across the sector, as set out under the updated Employment Regulation Orders.

The calculation of a services Core Funding grant contains multiple elements – the Base Rate, Graduate Premiums, Targeted Measures and the new Staff Funding Additional Contribution.

It is important to note that although there are various elements used to derive the grants for individual services, the eligible areas of expenditure of the Core Funding grant are much broader. Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlined in the Funding Agreement. The Staff Funding Additional Contribution is the only element of the grant which has a prescribed use.

Since the Scheme was introduced, its effectiveness has been subject to ongoing assessment, which has facilitated the iterative evolution of this scheme.

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 the coming months.

This review will provide a robust mechanism that will allow the Department, on an ongoing basis, to conduct more robust assessments of the efficacy and efficiency of Core Funding. 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.

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

It is acknowledged that rent may be a cost pressure to Dublin based providers; however, it should be noted that Dublin based providers also operate from an overall higher income base than their counterparts in other parts of the country. This is evidenced by the median fees charged to parents across the country – as captured below:

The annual changes to the allocation model and in the conditions attached to the funding has ensured the Scheme remains responsive, balancing the needs of providers while seeking also to meet a range of other objectives.

Regardless of whether the early learning and childcare service which their child attends is participating in Core Funding, both the Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS) are currently available to parents.

These schemes have made a significant impact on improving affordability of early learning and childcare for families.

The Department is confident in the adequacy of Core Funding for this sector. However, in addition to the increased levels of Core Funding since the scheme was introduced, there are wider financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability.