There has been an immediate call from early childhood care providers to increase capitation for the early childhood care and education, ECCE, programme, from €69 to €76 per week, at a cost of €30 million per annum. I have been contacted by several providers in Mayo who state that their businesses will no longer be viable if increased capitation is not put in place. Despite positive support for employees in early childhood care in this year's budget, the Federation of Early Childhood Providers is asking for more funding to cover the costs of administrating core funding. Children with additional needs are only funded to get support during the ECCE preschool session. Early childhood care providers say the related funding stream aims must be expanded. The Federation of Early Childhood Providers has balloted its members and is now planning two closure days next month. This will have a severe impact on working families. I ask the Minister to engage with these groups to see if a solution can be found.

With the support of the Minister for Public Expenditure and Reform, I achieved a €346 million increase in the budget for childcare. In 2023 we will spend more than €1 billion on childcare for the first time ever. That is going to deliver, on average, a 25% cut in fees for parents. Importantly for providers, this also allows us to put more money into core funding. Core funding in this academic year will grow by €52 million and in the second academic year will grow to €287 million. ECCE services are funded by core funding as well. It is important to refer to that ECCE services benefit from core funding. The majority will see significant increases in income under core funding. That will allow them to pay their staff better under the employment regulation order, ERO, that has been negotiated, allowing for the expansion of services across the country and assisting them to meet their overheads as well.