Press release – Minister O’Gorman welcomes strong commitment from early learning and childcare services to Core Funding for third year running

Published: 10th October, 2024

• Over 4,200 services have now applied for a third year of Core Funding, committing to working in partnership with the State to deliver early learning and childcare for the public good.

• Uptake continues to increase, with applications remaining open for the scheme worth €331 million to the sector in the third programme year.

• A fee increase assessment process has been introduced to balance the need of parents for stability with their early learning and childcare costs and the need for providers to operate viable businesses to continue providing this public good service in their communities.

• Significant further investment for this year of the scheme, with increased targeted supports for sessional and small Partner Services have been introduced and further increases in year 4 of the Scheme, announced in Budget 2025, which will see the total allocation increase to over €390 million for the fourth year of the scheme.

• Additional supports such as sustainability funding remain available through case management.

Roderic O’Gorman Minister for Children, Equality, Disability, Integration and Youth today announced that over 90% of early learning and childcare services have applied for the third year of Core Funding to date.

For the third year of operation, Core Funding has increased by 15% to €331 million to ensure the benefits of Core Funding will continue to be felt by children and their families and services across the full programme year.

The 90% uptake rate is in line with previous years of Core Funding, and services can sign up to Year 3 of the scheme at any time over the course of the programme year (September 2024-August 2025).

This year the scheme will continue to support increases to capacity and accessibility for parents whilst also ensuring improved quality and sustainability of Partner Services. Some of the new developments to the scheme in year 3 include higher payments to all providers and an increase in flat rate and minimum payment, benefitting smaller and sessional-only services.

In addition, there are changes to the fee management process. Up to now, services availing of Core Funding have not been allowed to raise their fees above what was charged to parents on 30 September 2021 (or at the point of first signing up for Core Funding if the service did not exist on 30 September 2021).

The fee freeze will remain in place for the majority of these services for year 3 of Core Funding, though there are two new developments.

Firstly, services whose fees have been frozen at a level that may not be sufficient to sustain their business will have the opportunity to apply for a fee increase. Secondly, a cap on fees will introduced for services joining Core Funding for the first time in the third year. This will subsequently be extended to all services from September 2025.

Read full press release here: gov.ie – Minister O’Gorman welcomes strong commitment from early learning and childcare services to Core Funding for third year running (www.gov.ie)