Core Funding Ireland 2026 is one of the most important financial lifelines available to early years and school-age childcare providers across the country. Now in its fourth year, the scheme has grown significantly with over €390 million allocated for the 2025/2026 programme year and more than 4,400 services, approximately 92% of all eligible providers, signed up as Partner Services.
But the scheme has also changed considerably since it launched in 2022. The 2025/2026 programme year has brought new fee cap rules that now apply to all providers, a new Staff Funding Additional Contribution linked to Employment Regulation Orders, updated financial reporting requirements, and a strengthened link between Core Funding participation and the Shaping the Future Early Years Action Plan.
Whether you are a long-standing Core Funding partner reviewing your position for the year ahead, or a newer provider trying to understand how the scheme works, this guide covers everything you need to know for 2026.
The Staff Funding Additional Contribution was introduced at €0.00 from 1 August 2025 and will only be activated and paid out once the Joint Labour Committee agrees new Employment Regulation Orders for the sector. Once the EROs are confirmed, providers will receive this funding backdated from the date of introduction and it must be spent on staff pay and conditions only.
Providers who believe the fee cap creates a sustainability risk for their service can apply through their local City or County Childcare Committee for a review. The Department maintains an established case management process for services experiencing genuine financial difficulties.
Importantly, Core Funding cannot be used for capital expenditure. If a provider withdraws from the scheme, funding stops immediately and any conditions that were not met may result in a requirement to repay a portion of funding received.
What Is Core Funding and What Is It Designed to Do?
Core Funding is one of five key funding streams that make up Together for Better, the Irish Government’s overall funding model for early learning and childcare. The other four streams are the ECCE Programme, the National Childcare Scheme, the Access and Inclusion Model, and the Equal Start Programme. Core Funding was introduced in September 2022 to replace the previous DCYA sustainability grant. Its three main objectives are:- To make childcare more affordable for families by requiring providers to freeze their fees
- To improve staff pay and conditions across the sector through stable, predictable income
- To support quality by funding graduate educators and managers through premium payments
Who Is Eligible for Core Funding in 2026?
Core Funding is available to community and privately owned Early Learning and Childcare services and School Age Childcare services registered with Tusla. From the 2025/2026 programme year, childminders are also eligible if they meet all three of the following conditions:- They were registered with Tusla in September 2024 under the previous childminding regulations
- They have remained continuously registered since that date
- They are now registered under the 2024 Childminding Regulations
- A current Tusla registration certificate uploaded to the Hive
- A Service Reference Number for each facility
- The Annual Early Years Sector Profile completed for the previous programme year
- An accurate and up-to-date Service Profile
How Is Core Funding Calculated?
Your total Core Funding allocation is made up of several individual components, all calculated on the Early Years Hive and paid monthly in advance. Here is a breakdown of each element for the 2025/2026 programme year:| Funding Element | Detail for 2025/2026 |
| Base Rate | Calculated using staffed child places, hours of operation, weeks open and the value assigned per age group. Minimum allocation is €14,400 (up €400 from Year 3). Maximum allocation is €450,000. |
| Sessional Flat Rate | Services registered with Tusla as sessional only receive a €5,000 flat rate top-up. |
| Graduate Lead Educator Premium | €4.44 per hour for graduate educators working as Lead Educators. No change from Year 3. |
| Graduate Manager Premium | €4.44 per hour for graduate managers. No change from Year 3. |
| Staff Funding Additional Contribution | A new element introduced from August 2025. Up to €1.14 per staff hour, ring-fenced exclusively for staff pay and conditions. This funding is tied to the Employment Regulation Orders and will only be released once new ERO rates are confirmed. |
| ERO Ring-Fenced Fund | Up to €45 million ring-fenced across the sector to support providers in meeting increased staff wages once new EROs are agreed. |
The Fee Cap: What It Means for Your Service in 2026
One of the most significant changes in the 2025/2026 programme year is the extension of the fee cap to all Partner Services. In previous years, the fee cap only applied to services joining Core Funding for the first time. From September 2025, it applies to every service in the scheme without exception. The fee cap structure is based on how many hours of childcare your service provides per week. The maximum permissible fee for a full-time place of between 40 and 50 hours per week is now €295 per week. Parents can reduce this further using National Childcare Scheme subsidies.| Weekly Hours Band | Maximum Permissible Fee |
| 50 or more hours per week | €295 |
| 40 to 49 hours per week | €295 |
| 30 to 39 hours per week | Proportionally capped |
| 20 to 29 hours per week | Proportionally capped |
| Sessional only (under 3.5 hours per session) | Flat rate rules apply |
Conditions, Compliance and Reporting Obligations
In return for Core Funding, providers are required to meet a set of ongoing conditions throughout the programme year. Failure to meet these conditions can result in funding being paused, reduced or recouped.Conditions providers must meet
- Freeze fees at or below the capped level and not increase fees without prior departmental approval
- Participate in both the ECCE programme and the National Childcare Scheme where eligible
- Maintain your Tusla registration and remain compliant with the 2016 Early Years Regulations
- Keep your Service Profile on the Early Years Hive accurate and up to date throughout the year
- Complete the Review and Confirm process at each required window, typically August, November and February
- Spend the Staff Funding Additional Contribution on staff pay and conditions only, once released
- Display your fees and Parent Statement clearly where parents can see them
- Issue updated Parent Statements to families if your fees or conditions change
- Submit validated financial returns including a full trial balance within six months of the end of the programme year
Financial reporting
From Year 3 onward, all Core Funding Partner Services are required to submit financial returns including a full trial balance. This is validated externally and must be submitted no later than six months after the end of the programme year. The Department has committed to providing support and guidance to providers of all sizes on meeting this requirement.Review and Confirm windows
The Review and Confirm process is completed through the Early Years Hive at set intervals during the year. At each window, providers must verify that their Service Profile is still accurate, confirm that their application status is at Approved, and action any Update Due items before the window closes. If your Review and Confirm is not completed on time, Core Funding payments may be paused.What Changed in the 2025/2026 Programme Year
The 2025/2026 year brought the most significant set of changes to Core Funding since the scheme launched. Here is a summary of the key updates every provider needs to be aware of:- Fee cap extended to all Partner Services, previously applied to new entrants only
- Total allocation increased to over €390 million, up more than 18% on Year 3
- Minimum base rate allocation increased to €14,400, up €400 from Year 3
- New Staff Funding Additional Contribution introduced, ring-fencing up to €45 million for staff pay
- Mandatory questions on accessibility and staff roles added to the application process on the Hive
- Auto-population of application details introduced for returning services to reduce administrative burden
- Fee cap set at a maximum of €295 per week for full day provision of 40 to 50 hours per week
Core Funding Application Timeline
For the 2026/2027 programme year, here is the typical application and review timeline providers should plan around:- June 2026: Applications open on the Early Years Hive for the new programme year
- July to August 2026: August Review and Confirm window opens (1 to 31 August)
- September 2026: New programme year begins and monthly payments commence
- November 2026: November Review and Confirm window
- February 2027: February Review and Confirm window
- March 2027 approximately: Financial returns submission deadline for 2025/2026 programme year
Staying Compliant While Availing of Core Funding
Participating in Core Funding means agreeing to a higher level of regulatory scrutiny. Your Tusla compliance record, your staffing and qualification levels, and your service documentation all feed directly into your eligibility and your ongoing funding allocations. At Early Years Shop, we provide a range of resources that help Irish early years providers stay compliant and inspection-ready throughout the full Core Funding programme year, including:- Records, Policies and Toolkits built specifically around the 2016 Regulations required for Tusla compliance
- Quality and Compliance resources to support your QRF self-evaluation and Core Funding quality obligations
- Risk Assessment Packs to keep your safety documentation current and complete
- Staff records templates and management tools to support your staffing documentation for Hive reporting
- Posters and Signs to display your Parent Statement, fees and other required information clearly for families
Can I still increase my fees if I am in Core Funding?
Not without prior approval. Once you are a Core Funding Partner Service, your fees are subject to the fee cap structure and you cannot increase them unilaterally. If you believe your current fees are unsustainable, you can contact the Department of Children, Disability and Equality through your local City or County Childcare Committee to request a review. The Department approved approximately 850 fee increase requests during the 2024/2025 programme year.
What happens if I withdraw from Core Funding?
If you withdraw from Core Funding, your funding stops immediately. You must notify both the Department and all affected parents. If conditions of the scheme were not met during your participation, you may be required to repay a portion of the funding you received. You must also re-issue updated Parent Statements to families showing the change in your funding status.
Can Core Funding be used to pay for building works or equipment?
No. Core Funding cannot be used for capital expenditure. This includes building works, structural improvements, and major equipment purchases. If you need capital investment, the Building Blocks Scheme offers separate grant funding for equipment, minor capital works and major capital projects for existing Core Funding Partner Services.
What is the Staff Funding Additional Contribution and when will I receive it?
The Staff Funding Additional Contribution is a new element of Core Funding introduced in August 2025. It was initially set at €0.00 per hour and will only be paid out once new Employment Regulation Orders for the sector are agreed by the Joint Labour Committee and given statutory effect. Once the EROs are confirmed, this funding will be paid at a rate of up to €1.14 per staff hour and must be used exclusively for staff pay and conditions.
Does participating in Core Funding affect my Tusla inspection outcome?
Yes, indirectly. Core Funding participation requires you to maintain Tusla registration and comply with the 2016 Regulations throughout the programme year. If a Tusla inspection finds significant non-compliance, your Core Funding status can be reviewed. Staying inspection-ready and staying Core Funding compliant go hand in hand.
Core Funding has transformed the financial landscape for early years providers in Ireland. At over €390 million for 2025/2026, it represents a level of State investment in the sector that was unimaginable just a decade ago. But with that investment comes responsibility.
Providers who get the most out of Core Funding are those who understand the scheme fully, keep their documentation in order, manage their Review and Confirm windows carefully, and stay ahead of the changes that come with each new programme year.
The changes coming in 2026 around admissions policies, the ERO staff funding contribution, and the ongoing fee cap obligations mean that staying informed is more important than ever. Use this guide as your reference point and make sure your service is in the strongest possible position going into the year ahead.
