608. Deputy Duncan Smith asked the Minister for Children, Disability and Equality if she is aware that childcare providers operating 57 hours per week fall within a category that is not required to reduce its fees in line with the lower fee caps being introduced; if she is aware that parents cannot avail of NCS subsidies for those operating hours and therefore do not receive a corresponding benefit (details supplied); if consideration is being given to families who appear to fall into this gap; and if she will make a statement on the matter. [47198/26]

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

When first introduced in 2022, Core Funding had an annual allocation of €259 million; €210.8 million of which was entirely new funding to the sector. That annual allocation has increased each year since and has exceeded €390 million for the current fourth year of the Scheme. This represents an increase of over 50% in Core Funding in three years.

A key condition of receiving the significant State funding that is available through the Scheme requires that a Partner Service adhere to the Core Funding fee management system, which includes a freeze on fees at 2021 levels and fee caps. This is to ensure that the State’s significant investment through the Scheme is not absorbed by unnecessary fee increases. This approach to stabilising fee rates in the sector is in line with the recommendations outlined in Partnership for the Public Good, the Expert Group report which was accepted by all of Government in December 2021.

In June, I announced that the maximum fee caps for all Partner Services in Core Funding will be lowered from September 2026. Under these new fee caps, the fee for a full day place – of between 40-50 hours per week, the most common full day care operating hours – will be no more than €280 per week (before State subsidies under the National Childcare Scheme and the ECCE programme are deducted), the fee cap for 50+ hours of care is €336.

The fee caps are stepped down on a pro rata basis, meaning there will be a maximum amount a service can charge at each Fee Band, from Band A (less than 10 hours per week) up to Band F (50 hours or more per week).

The hours per week and associated maximum fee at each Fee Band refer to the care purchased by a parent for their child on a weekly basis. Fees charged to a parent should be based on the hours that were agreed to between the parent and the service, not the total opening hours of the service.

Any level of care including or exceeding 50 hours per week falls into Band F, with €336 set as the maximum weekly fee. In any case, parents purchasing 57 hours of care per week should not be charged any more than this amount.

All families, regardless of income or work status, are entitled to a universal subsidy of €2.14 per hour for up to 45 hours of care per week. Higher levels of support are targeted at lower-income families through the income-assessed subsidy. Parents who are engaged in work, study, or training may receive subsidies for up to 45 hours per week, while those not so engaged are entitled to a subsidy for up to 20 hours per week.[]

If a parent is concerned that their provider has not followed the above procedure, or in the event that they wish to raise a concern regarding a potential breach in fee conditions, the first step is to reach out to their local City/County Childcare Committee for support and guidance. Contact details for local City/County Childcare Committees can be found at: www.gov.ie/en/publication/52b71-support-for-parents-city-and-county-childcare-committees/.

For information, the Department has a list of all Core Funding Partner Services which is updated regularly on the Departments website under How to Find a Partner Service: www.gov.ie/en/department-of-children-disability-and-equality/publications/how-to-find-a-partner-service/.