675. Deputy Daniel Ennis asked the Minister for Children, Disability and Equality if she is aware of any early learning and childcare providers leaving core funding since the most recent price cap reduction from €198 per week to €183.70 per week; and if she will make a statement on the matter. [53083/26]

While the Department cannot mandate providers to participate in the Scheme, every effort has been made to carefully design Core Funding to meet the policy objectives including to achieve high levels of participation by providers.

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.

However, if an existing Partner Service decides not to enter a contract for the new programme year starting on 1 September, they, as private businesses, would no longer be subject to the provisions of the Core Funding Agreement and, by extension, the required minimum notice period to the scheme administrator and parents/guardians. They are also not required to provide a reason for choosing not to reapply for Core Funding to the scheme administrator.

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.

Adherence to the Core Funding fee management system is a primary condition of receiving the significant State funding that is available through the scheme. The fee management system requires compliance with the fee freeze and maximum fee caps. This is to ensure that the State’s significant investment through the Scheme is not absorbed by unnecessary fee increases.

Fee Caps were first introduced in September 2024, applying only to First-Time Partner Services, meaning services that were contracting to the scheme for the first time in year 3 of Core Funding (September 2024 – August 2025). This established a ceiling of affordability beyond which services would not be able to participate in Core Funding. These maximum fee caps were then lowered and extended to all Partner Services in September 2025.

In June, the new maximum fee caps were confirmed for September 2026. 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 from September 2026. When universal subsidies under the National Childcare Scheme are deducted, this decreases to €183.70 per week. The majority of services are already charging less than the maximum fees. Approximately 12% of services will be required to lower at least one fee.

Budget 2026 allocated over €21 million in brand new funding to support providers in adhering to the Core Funding fee management conditions. The new maximum fee cap and increased State investment are important steps towards the Government’s commitment to progressively reduce the cost of early learning and childcare to €200 per month per child during the lifetime of the Government.