2504. Deputy Denise Mitchell asked the Minister for Children, Disability and Equality if she is aware that a creche (details supplied) has withdrawn from core funding; the measures that can be taken to help keep fees for parents low while ensuring the creche remains sustainable; and if she will make a statement on the matter. [25415/26]

Under the Core Funding Partner Service Funding Agreement, Partner Services must comply with the rules of the Core Funding scheme, such as the associated fee management measures and minimum notice periods. In line with the Core Funding Partner Service Agreement, services considering withdrawing from the scheme during a programme year must give 3 months’ notice of their intention to withdraw to the scheme administrator, and 3 months’ written notice to parents/guardians. As of 8 April 2026, this service has not yet provided notice of its intention to withdraw to the Scheme Administrator.

The Department, through the local Childcare Committees, engages directly with any such service to highlight the benefits of staying in Core Funding, not only for their services but also for the families who avail of them.

As Core Funding is an optional scheme, service providers have the autonomy and business freedom to choose not to participate in or withdraw from Core Funding.

As per the table below, Charlie’s Childcare Limited has 6 services registered for Core Funding in 2025/26, the projected full-year Core Funding allocation across these 6 services is €1,358,275.

This represents a total cumulative increase of 303% since the scheme was first introduced. It should be noted that this service provider has operated 3 services for the full duration of Core Funding to date, and for these services, it has experienced a cumulative 87% increase when comparing year 1 to year 4 funding.

The projected allocation for this programme year figure includes funding specifically ringfenced for improvements to staff pay; to support the Employment Regulation Order that came into effect on October 13, 2025.

Core Funding is a supply-side grant to early learning and care (ELC) and/or school-age childcare (SAC) providers towards their operating costs. It is designed to deliver, among other things, sustainability for providers through substantially increased funding to the sector, paid on a consistent and equitable basis.

A key condition of receiving the significant State funding available through the Core Funding Scheme requires that Partner Services adhere to the Core Funding fee management system, including a freeze on fees at 2021 levels and fee caps. These measures support the Department’s ongoing policy developments in relation to achieving standardisation of fees charged to parents and of income received by Partner Services.

While the State cannot mandate providers to participate in the scheme, Core Funding has been designed with maximum participation of providers in mind as reflected in the year-on-year growth of investment in the Scheme (rising from €259 million in the first year of the scheme to over €390 million for the current fourth year of the scheme). This represents an increase of over 50% in Core Funding in four years.

The allocation for Core Funding for year 5 of the Scheme will increase again by 23% to over €480 million. This will support the maintenance of fees at 2021 levels in Year 5 (guaranteeing that Core Funding’s monetary protections will continue to be passed on to families), 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 Department has also 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.

There are wider financial supports available where a service is experiencing financial difficulty or has concerns about their viability. These supports can be accessed through the Department’s case management process, which can be accessed while remaining in Core Funding.

All services have been encouraged to avail of these supports as an alternative to withdrawing from Core Funding and removing the benefit of Core Funding to children and their families.

The Department has also published ‘Shaping the Future: Early Years Action Plan’ (Phase 1 Report). It sets out plans to achieve key Programme for Government commitments on the affordability, quality, and accessibility of early learning and childcare (ELC) and school-age childcare (SAC).

The Action Plan adopts a phased approach that allows for actions in 2026 to improve affordability, accessibility and quality, while also ensuring adequate time for broad public consultation on longer term actions.

The report is available at: [Shaping the Future: Early Years Action Plan].

Parents experiencing difficulty in relation to their early learning and childcare needs are encouraged to contact their local City/County Childcare Committee who can support and advise them on options in their area.

The Department has a list of all Core Funding Partner Services which is regularly updated on the Department’s website under [How to Find a Partner Service].