More early years providers in Cork withdraw from core funding

At least 10 Cork early years providers have withdrawn from core funding in the last three years and have not rejoined, meaning significant cost increases for families, new data from Pobal shows.

Core Funding is a state-provided grant in Ireland for Early Learning and Childcare and School Age Childcare providers, which sees the operators paid by the state rather than parents.

Cork providers have previously expressed concern at the low level of capitation provided through the scheme, saying it is insufficient to cover costs of running the service and paying staff.

The high level of administrative work required for the scheme is also putting particularly smaller services under staffing pressure, they said.

Overall, more than 50 Irish services have left the sector since 2022, with nine of these in Cork, documentation provided to The Echo under the Freedom of Information act shows.

Providers to withdraw from the scheme include two this summer, ahead of the 2025/2026 academic year.

One of these was in Cobh and one in Glounthaune, while in 2024, one service in Mallow and one in Friar’s Walk withdrew.

No Cork services withdrew from the scheme ahead of the 2022/2023 academic year, but five withdrew the following year, in Macroom, Midleton, Dripsey, Vicarstown and Kerry Pike.

At least one further service, which catered to 450 children in Carrigtwohill, has since withdrawn from core funding, Cork Fianna Fáil TD Pádraig O’Sullivan said.

“There are about 300 families with 450 children affected, and they are faced with the prospect of a 34% hike in fees because the provider has decided to go outside of the core scheme,” he said.

Minister for children, Norma Foley, revealed in the Dáil recently that as of August 5, a total of 553 childcare services were registered with Pobal in Cork.

She said that 26 services left Core Funding but later rejoined, and added: “The fourth year of Core Funding began on 1 September 2025 and uptake continues to remain on par with the same point in previous years.

“Every year there are a number of services which sign up to Core Funding in the weeks following the commencement of the programme year.

“For this reason, it is not yet possible to make an accurate assessment regarding whether further services have made the decision to no longer participate in Core Funding.”