679. Deputy Michael Healy-Rae asked the Minister for Children, Disability and Equality if she will confirm whether providers who have left core funding (details supplied) will be penalised; and if she will make a statement on the matter. [51654/26]

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.

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

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 2022 to over €390 million in 2025). This represents an increase of over 50% in Core Funding in three years.

Core Funding has enjoyed high participation from the sector since its launch in September 2022.

As of July 2026, we are seeing the highest numbers of services participating in the Core Funding scheme since the scheme was launched, with 93% of all eligible providers signed up to the fourth year of Core Funding which equates to over 4,600 services. Over 70% of services who left the scheme at one point have returned to the Scheme.

334 eligible services, from a total of 5296, are currently not participating. These services are welcome to join Core Funding at any stage. The Department/CCC can support services with further information on how to join.

Currently, services that provide the Early Childhood Care and Education (ECCE) programme and/or the National Childcare Scheme (NCS) are not required to take part in Core Funding.