Running a creche or preschool in Ireland means keeping track of more than nappies, ratios and rotas. It also means keeping on top of Core Funding, the State grant that has reshaped how early learning and childcare services are paid since 2022. If you are a creche owner, preschool manager or school age childcare provider, understanding core funding Ireland early years rules is not optional. It affects your fees, your staffing budget and your standing with the Department.
This guide walks through where Core Funding stands in 2026, what changed in Year 4, what DCEDIY (now the Department of Children, Disability and Equality) expects from participating services, and the compliance documents you need close at hand. Whether you are applying for the first time or simply want a refresher before the next Review and Confirm window, this article covers what you need to know.
What Is Core Funding and Why Does It Matter
Core Funding is a State grant introduced in September 2022 for Early Learning and Care (ELC) and School Age Childcare (SAC) providers registered with Tusla. It sits alongside other supports such as the Early Childhood Care and Education (ECCE) programme, the National Childcare Scheme (NCS), the Access and Inclusion Model (AIM) and Equal Start, together forming the Together for Better funding model.
The scheme exists for three main reasons. First, it helps keep fees affordable for parents by requiring participating services to freeze their charges. Second, it supports quality by contributing to staff pay, including graduate premiums for qualified educators and managers. Third, it gives services a more predictable income stream than relying on parent fees alone, which supports the long term sustainability of the sector.
Unlike ECCE or NCS, Core Funding is not paid per child. It is calculated on staffed capacity, meaning the number of children a service can care for based on its opening hours, operating weeks and staff to child ratios, rather than how many children are actually enrolled at any given time.
Core Funding Year 4: Where Things Stand for 2025/2026
Core Funding Year 4 runs from 1 September 2025 to 31 August 2026. State investment reached a record level of over €390 million for the year, an increase of more than €60 million on the previous programme year.
A number of changes arrived with core funding year 4 worth knowing about:
- Base Rate increases. The minimum annual allocation for centre based services rose to €14,400, an increase of €400 on Year 3, while the maximum allocation was set at €450,000. Sessional only services continue to receive a flat rate top up of €5,000.
- Staff Funding Additional Contribution. This new element was introduced to help services meet the cost of updated minimum pay rates agreed through the Joint Labour Committee process, with a maximum hourly rate of €1.14 once new Employment Regulation Orders are confirmed.
- Graduate premiums. These remain unchanged at €4.44 per hour for graduate Lead Educators and Managers.
- New mandatory fields. The Service Profile now asks about wheelchair accessibility and includes updated staff role categories, so providers should expect a slightly longer profile update than in previous years.
Looking slightly ahead, the Department has already signalled that Core Funding Year 5, beginning September 2026, will bring a further budget increase to around €480 million along with lower maximum fee caps, so providers should keep an eye on Departmental updates as the current programme year draws to a close.
DCEDIY Core Funding Requirements: Who Can Apply and What You Must Do
The Department, still widely referred to by its former name DCEDIY though it now operates as the Department of Children, Disability and Equality, sets clear eligibility rules. Core Funding is open to community and privately owned ELC and SAC services registered with Tusla, and to childminders who were registered with Tusla in September 2024 and have remained continuously registered under the current Childminding Regulations. Drop in only services do not qualify.
Before applying, providers must have several pieces in place:
- Current Tusla registration certificates uploaded to the Early Years Hive portal.
- A completed Annual Early Years Sector Profile (AEYSP) for the previous year.
- An up to date Service Profile, since inaccurate or outdated details can directly affect the funding calculation.
Once these are confirmed, services must also be contracted to ECCE and/or NCS, unless registered solely as a pre-school sessional service, and must sign a Funding Agreement with the Department. For a fuller breakdown of the current year's rules in question and answer format, our own Core Funding Q&A for 2025/2026 is a useful companion to this guide.
Understanding the Early Years Fee Cap Ireland Rules
Fees have been frozen at their September 2021 level for participating services since Core Funding began, and that freeze continues into Year 4. In practice, this means a service cannot increase fees above what it charged on 30 September 2021, or the date it first joined Core Funding if that came later, unless it increases the hours or days on offer proportionately, or receives specific approval through a Fee Review process.
From September 2025, a new maximum fee cap was introduced for all Partner Services, on top of the existing freeze. Under this cap, the highest fee that can be charged for a full day place of 40 to 50 hours per week is €295. This measure was designed to reduce the widest fee disparities across the sector, and it affects around 10 percent of providers whose fees previously sat above this level.
Every participating service must also issue parents with a clear Parent Statement, setting out the fees charged and the subsidies applied, and this statement must be displayed and kept up to date throughout the year.
Core Funding Compliance Documents Every Provider Needs
Good documentation is the backbone of a smooth Core Funding application and an even smoother Fee Review or Tusla inspection. At minimum, your files should include:
- Your current Tusla registration certificate for each facility, along with its Service Reference Number.
- The signed Core Funding Partner Service Funding Agreement.
- A completed and displayed Parent Statement and Fee Table.
- Evidence of your Quality and Inclusive Practice Plan (QIPP), required for services contracting before 31 October.
- Financial reports submitted through the Department's chart of accounts on the CFCRRS platform.
- Records supporting your Service Profile, particularly around staffing and staffed capacity.
Keeping these organised in one place, whether a physical folder or a digital system, saves considerable time when the annual Review and Confirm window opens or when a Fee Review is triggered. Our Records, Policies and Toolkits range and Quality and Compliance collection are built to help early years services keep this kind of paperwork consistent, and services managing NCS alongside Core Funding may also find our ECCESoft Early Years Management System useful for tracking funding compliance in one place.
How to Complete Your Childcare Provider Core Funding Application
The application itself is completed on the Early Years Hive portal and runs in two parts. Part A covers the Service Profile, where mandatory details such as staffing, accessibility and operating hours are confirmed or updated. Part B is the Core Funding Application Module itself, completed across four steps covering service details, staffing, fees and a final summary.
A few practical points are worth flagging before you start:
- Applications lock once submitted and cannot be edited again until approved or referred back by the Department, so it pays to review every section carefully first.
- Services that submit their application and August Review and Confirm form by 31 August have their base rate capped at the approved figure from that review.
- Relief and cover staff should only be included where they are consistently present, and overlapping sessions are not permitted; sessions must be split so ratios remain accurate.
If any discrepancy appears between your application and Tusla's own register, such as a mismatch in registered capacity, you will be asked to upload supporting evidence like a recent Tusla certificate before the application can proceed.
Common Mistakes to Avoid
A few recurring issues cause unnecessary delays for providers each year. Submitting an application with an outdated Service Profile is one of the most common, since capacity and staffing details drive the entire Base Rate calculation. Missing the Review and Confirm window is another, as this can pause funding until it is completed. Providers also sometimes overlook that Core Funding cannot be used for capital expenditure, and that withdrawing from the scheme requires formal notice to both the Department and parents, along with a re-issued Parent Statement.
FAQ
Is Core Funding the same as the National Childcare Scheme?
No. Core Funding is a grant based on staffed capacity, while NCS is a subsidy paid based on individual children's attendance and family circumstances. Most services participate in both.
Can a new service join Core Funding partway through the year?
Yes, subject to Departmental approval, though the fee freeze reference date becomes the date the service first contracts into the scheme rather than September 2021.
What happens if my fees are above the new maximum cap?
Services above the cap introduced in September 2025 must reduce their fees to the relevant band maximum, and this reduced fee then becomes the new reference point for future changes.
Does Core Funding cover capital costs like renovations or equipment?
No. Core Funding is explicitly for operational costs and cannot be used for capital expenditure.
Where can I find the official application guidelines?
The Department publishes updated Applicant Guidelines each programme year, and providers should also check the Early Years Hive portal directly for the most current documents and deadlines.
Final Thoughts
Core Funding has become one of the central pillars of running a sustainable early years service in Ireland, and Year 4 brought meaningful changes to base rates, staff pay support and fee caps. Staying on top of DCEDIY core funding requirements, keeping your compliance documents current, and understanding exactly where your service sits under the early years fee cap Ireland rules will save you time and stress at application and review stages alike. With Year 5 already on the horizon, now is a sensible moment to get your records in order for what comes next.
