08/11/2025
There are many reasons Early Years & Afterschool services need to leave Core Funding coming from the Dept of Children and instead put that cost onto parents 💔
Service providers are leaving Core Funding for sustainably of their businesses and not out of greed as so often disrespectfully implied.
If you leave Core Funding you lose not only previously received & entitled funding but opportunities for staff to upskill and also any funding/support towards the ERO (Employment Regulation Order)
Emer Currie TD - Dublin West
Jack Chambers
Paul Donnelly TD
Ruth Coppinger
Cllr. Siobhan Shovlin
Cllr John Walsh
Roderic O'Gorman TD
Councillor Ted Leddy
Social Democrats
Fine Gael
Sinn Féin Ireland
Fianna Fáil
🚨⚠️Irish Early Years Sector Survey Warns of Systemic Breakdown as Government Holds Course⚠️🚨
The Irish early years sector is warning of a systemic breakdown after a meeting with the Department of Children this week offered little relief to providers already reporting profound financial instability, wage pressure, and service attrition. New national survey data presented at the meeting reveals extraordinary levels of dissatisfaction across nearly every operational metric, with more than 95% of providers supporting collective action.
The Federation of Early Childhood Providers (FECP), representing services across the country, said the figures demonstrate not a sector approaching crisis but one already in collapse.
According to the Department, there are now 4,527 registered services nationwide. FECP has requested a detailed breakdown, noting that a significant share appears to be school-age services rather than early years provision, a distinction that materially affects capacity reporting and policy direction.
Funding Increase Falls Short
The Employment Regulation Order (ERO), which took effect in October, was acknowledged by the sector as a marginal support. However, providers say the measure is nowhere near adequate to meet escalating costs.
All services must now review and confirm that wage rates comply with the ERO, a requirement that adds administrative burden without addressing underlying structural underfunding.
The Department confirmed it will maintain its fee management system.
No reopening of fee caps is planned in the immediate term. While officials referenced a potential annual fee review mechanism, the proposal remains speculative, with no detail or timeline.
New Reporting Mandate in 2026
Beginning in February 2026, all partner services will be required to submit a full trial balance — a level of financial monitoring many providers say will add yet another compliance cost as margins narrow further.
The Federation has also requested full accounting of applications to the sustainability fund, including how many services have accessed it and on what basis. No figures were provided at the meeting.
NCS Uptake Driven by School-Age Sector?
The Department reported a 31 percent increase in uptake of the National Childcare Scheme. FECP has again asked for a breakdown, arguing that the rise is primarily in school-age services and does not reflect improved viability within early years settings.
Meanwhile, the Department confirmed there will be no increase in funding for sponsorship chicks next year.
Registration Concerns
More than 3,400 services have completed Tusla re-registration. However, 173 services have not engaged, prompting concern that many have already closed quietly. All services must be re-registered by November 14 or risk losing funding.
Providers raised ongoing frustration around Garda vetting access, asking that copies be issued directly to services. The Department rejected the request, stating that vetting is held by Tusla and not shared with service providers as it was not necessary. A review is underway at the Department of Justice on this process. We have been assured that the disclosure document is the only item we need to have on file.
A recorded tutorial on pensions and auto-enrolment is expected to be posted to The Hive. No release date has been confirmed.
Our Survey Findings:
A Near-Total Rejection of Government Policy
The FECP survey, completed by 479 service owners — with many of our members operating multiple sites — offers a rare unanimity in public-facing sector data.
• 98% say current funding levels are inadequate.
• 97% say projected income for next year will be worse.
• 96% report that they cannot pay themselves properly.
97% say wage allocation does not cover costs, even excluding graduate roles and including pension auto-enrolment.
• 95% support collective action.
The data further reveals that 62% of providers face corporate tax bills exceeding €5,000 annually — despite widespread inability to pay their own wages sufficiently.
Providers describe a system in which the State controls fees, dictates wage standards, increases compliance obligations, and demands new financial disclosures, while the funding to support these obligations fails to materialise.
The result, they say, is that providers are effectively subsidising the national childcare system out of personal income.
“This is not partnership,” one provider said. “It is extraction.”
Operational Strain
ECCE providers reported a seven-week gap between the November and January payments. The Federation asked that January funds be released earlier; the Department said the request is under consideration.
On commercial rates, the Department is in discussions with the Department of Housing. The Federation has called for a direct meeting with the Minister.
The Department says that the newly increased AIM Level 7 rate of €18 per hour is covered within current funding — a claim many providers dispute based on operational budgets.
“Collapse in Motion”
Sector leaders say there is a widening disconnect between Government policy and frontline economic reality.
They note that infant care capacity continues to shrink; burnout and attrition are accelerating; AIM delays are excluding children from support; and closures are quietly spreading.
The FECP survey data, they argue, leaves little room for interpretation:
Stability: collapsed.
Sustainability: gone.
Wage integrity: impossible.
Provider income: insufficient.
Confidence in Government: evaporated.
In other sectors, a 98% rejection rate would trigger emergency intervention.
The Federation argues that early years education deserves equal seriousness.
A Turning Point
The Federation will convene a member meeting on Tuesday November 11th at 7 p.m. to determine next steps.
With 95% of respondents supporting collective action, the sector appears poised for a critical pivot.
“Providers are out of time, out of staff, and out of money,” the Federation said. “The only thing they are not out of is resolve.”
The message, they added, is not one of threatened collapse — but of collapse already underway.
“In any other national infrastructure — hospitals, schools, transport — these numbers would trigger immediate intervention.
Yet early years providers are expected to absorb loss after loss while carrying the workforce that allows the broader economy to function.”
The Federation warned that without immediate structural reform, the Government will “own the collapse of early years education in Ireland.”
The choice now, they say, is simple: intervene — or watch the system fall.
Thank you all for your support,
The FECP Team
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