1034. Deputy Barry Ward asked the Minister for Children, Disability and Equality the mechanisms in place to engage with childcare providers that indicate they plan to withdraw from the core funding scheme. [64942/26]

I am aware that a small number of providers are regrettably considering withdrawing from the Core Funding scheme.

If a Partner Services wishes to withdraw from the Core Funding Programme, they must provide 3 months’ notice to the Scheme Administrator. This must be done by submitting a Service Request on the Early Years Early Years Hive outlining the withdrawal date and the reason for the withdrawal.

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 parents. They are also not required to provide a reason for choosing not to reapply for Core Funding to the Scheme Administrator.

Services may choose to leave the scheme mid-year with reasons stated as being denied a fee increase, temporary closures, financial difficulties, administrative requirements and personal reasons such as retirement.

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. I am hopeful that the providers may reconsider their decision.

As Core Funding is an optional scheme, service providers have the autonomy and business freedom to withdraw from or choose not to participate in Core Funding, even though this will result in the loss of the significant financial support it offers them and the substantial benefits and certainty it brings to families.

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 year 1 to over €480 million in year 5). This represents an increase of 86% in Core Funding in four years.

The increased allocation will support capacity growth across the sector, adherence to fee management conditions, and improvements in staff pay and sustainability.

In addition to this increased allocation, being in Core Funding unlocks additional supports for services to access, including:

• access to wider financial supports where a service is experiencing financial difficulty or has concerns about their viability;

• access to enhanced support for services caring for concentrated numbers of children facing disadvantage through Equal Start; and

• opportunities to apply for capital grants through the Department.

As noted above, there are wider financial supports available from the Department where a service is experiencing financial difficulty or has concerns about their viability, which can be accessed through their local City/County Childcare Committee (CCC) while remaining within Core Funding.

Once a service engages with their local CCC they will be able to avail of sustainability supports through the case management process.

As part of the Case Management process, CCCs assist services with issues and difficulties that arise. This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, financial support, as well as more specialised advice and support appropriate to individual circumstances.

I do not want any service to be faced with financial sustainability issues and officials in the Department are committed to working with any such service to support them in delivering early learning and childcare for the public good.

I would encourage any service experiencing financial difficulty and who would like support to contact their CCC to access case management supports. Contact details for the CCCs can be found at: www.gov.ie/en/department-of-children-disability-and-equality/campaigns/city-and-county-childcare-committees/

Participation in Core Funding is optional, but it remains open to all Tulsa registered providers, subject to their agreement to the terms and conditions of the Core Funding Agreement. Access to Core Funding remains open to all Tusla-registered providers, subject to their agreement to the terms and conditions of the Core Funding Agreement. Withdrawn services and services that have chosen not to reapply are welcome to reapply to the scheme at any point.

The Department will continue to engage with the sector and continue to develop the scheme so that it can continue to see the high uptake levels it has seen this year, and indeed since it was launched in 2022.

Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee for assistance. For information, the Department has a list of all Core Funding Partner Services which is updated regularly on the Department's website under: www.gov.ie/en/department-of-children-disability-and-equality/publications/how-to-find-a-partner-service/