Core Funding 2025/2026 – Questions & Answers for Early Years and SAC Providers

22 Aug 2025

1. What is Core Funding?

Core Funding is one of the key supports under Together for Better, the Government’s funding model for Early Learning and Childcare. It sits alongside the ECCE programme, the National Childcare Scheme (NCS), AIM and Equal Start. The purpose of Core Funding is to strengthen the sector in several ways. It helps keep childcare more affordable for families by requiring providers to freeze their fees and to offer ECCE and NCS schemes. It supports quality by improving pay and conditions for staff, including graduate supports, and it provides financial stability for services through predictable income. For the 2025/2026 programme year, Core Funding runs from 1 September 2025 to 31 August 2026.

2. Who can apply?

· Core Funding is available to community and privately owned Early Learning and Childcare (ELC) services and School Age Childcare (SAC) services registered with Tusla.

· Childminders are also eligible if they were registered with Tusla in September 2024 under previous regulations, have remained continuously registered, and are now registered under the 2024 Childminding Regulations.

· Drop-in only services are not eligible.

3. When does the programme run and what are the key dates?

· The programme year runs from 1 September 2025 to 31 August 2026.

· Applications open in June 2025, and the August Review and Confirm process takes place between 1 and 31 August 2025.

· Payments begin in September and are made monthly in advance.

4. What is new in Year 4 (2025/26)?

The 2025/26 programme introduces several important changes.

Service Profile Changes

New mandatory questions on wheelchair accessibility.
Staff section updated:
- Some job titles removed from "Out of Ratio" staff.
- New mandatory staff fields.
- Update Due Dates must be cleared before applying

Base Rate Increases

Base rate payments have increased slightly across all age groups. The minimum allocation for centre-based services has risen to €14,400 per year, and the €5,000 flat-rate top-up remains for sessional-only services.

All Early Learning & Care (ELC) base rates rise to cover rising costs, supporting affordability while maintaining a fee freeze. Capital costs remain excluded.

Targeted Measures:

Flat rate top-up: €5,000 for sessional-only services.
Minimum allocation: €14,400 (↑ €400 from Year 3).
Maximum allocation: reduced to €450,000.

Graduate Premiums

No change; €4.44/hr for graduate educators and managers.

Staff Funding Additional Contribution (NEW)

Ahead of new EROs rates, a new Staff Funding Additional Contribution has been introduced on step 4 of the summary page from 1st August with a €0.00 until the EROS have been agreed, to provide additional hourly funding ring-fenced for staff pay and conditions.

Up to €45m ring-fenced to cover increased staff pay from Employment Regulation Orders (EROs).
Calculated based on minimum staffing hours (max €1.14/hr).
Must be spent only on staff pay/conditions.

Auto-population for Returning Services

The application process on the Early Years Hive has been improved with auto-population for returning services, and new mandatory questions about accessibility and staff roles are now included.

5. How is funding calculated?

· Funding is made up of several elements. The Base Rate is calculated based on staffed child places, hours of operation, weeks open and the value assigned per age group.

· There is a minimum guarantee of €14,400 and a maximum cap of €450,000 for the base rate.

· Sessional-only services receive a €5,000 flat rate.

· Services that employ graduate Lead Educators or Managers may receive additional premiums, and the new Staff Funding Additional Contribution supports staff pay.

· All these amounts are combined to form the service’s total Core Funding allocation, which is paid monthly in advance.

6. What must providers do before applying?

Before applying, providers must upload Tusla registration certificates to the Early Years Hive, ensure each facility has a Service Reference Number, complete the Annual Early Years Sector Profile (AEYSP) for 2024/2025, and complete their Service Profile. The Service Profile must be accurate and kept up to date throughout the year, as changes can affect funding.

Key Steps Before Applying:

Tusla registration(s) must be uploaded.
Annual Early Years Sector Profile (AEYSP) 2024/25 must be completed.
Service Profile must be up to date.

7. How does Tusla registration link to the application?

The Early Years Hive checks application details against Tusla’s Register. This ensures that service type and capacity match. If discrepancies exist, services must upload evidence, such as a recent Tusla certificate or letter. If there are no differences, no additional documents are required.

Application Process

Part A: Service Profile (mandatory updates).
Part B: Core Funding Application Module (4 steps).
Applications lock once submitted (until approved/referred back).
Parent Statement must be created, displayed, and shared with parents.
Quality & Inclusive Practice Plan (QIPP) required if contracting before 31 Oct.

8. What are the rules around fees?

· Fee freeze continues, fees cannot exceed the level charged on 30 September 2021 (or the date of first contracting into Core Funding for newer services).

· New service types or additional services must always be optional and proportionate in cost.

· Deposits must be refundable once a child’s place is confirmed. Services cannot request regular or routine donations.

· Each service must also provide a Parent Statement, outlining fees and subsidies, which must be displayed and shared with parents.

Common Fee Structure: (6 Fee Bands based on weekly hours).

Maximum Fee Caps introduced (Sept 2025):

9. What reporting is required?

· Providers must submit financial reports using the Department’s chart of accounts through the CFCRRS platform.

· They must also complete a Quality and Inclusive Practice Plan and report, and keep the Parent Statement and Fee Table up to date.

· Throughout the year, providers must complete the Review and Confirm process on the Hive, ensuring information is accurate. Missing this step may pause funding.

10. What are the rules about Staff Capacity?

· Capacity Definition: Number of children service can accommodate, based on staff ratios (not enrolments).

· Base rate linked directly to staffed capacity.

· Typical Week: Applications must reflect an average week.

· Material/significant changes (>4 weeks) must be updated.

· Relief/Cover staff should not be assigned to rooms unless always present.

· Overlapping sessions are not allowed – sessions must be split to avoid overlap.

11. What happens if a service withdraws?

If a provider withdraws from Core Funding, they must inform both the Department and parents. Funding stops immediately, and if conditions of the scheme were not met, repayment of some funding may be required.

12. Other Rules & Notes