1.2.2 Funding

1.2.2 Funding

Government funding for the early years sector has increased significantly

ELC and SAC services are owned and run privately, and operate either on a ‘not-for-profit’ or ‘for-profit’ basis. However, Government funding for early learning and care, which is managed by DCEDIY, has increased significantly in recent years. As of 2020, DCEDIY funding stood at €638m up from €260m in 2015 (Table 1.1). In 2022, funding will reach €716 million. This excludes the significant spending on COVID-19 supports for the sector, including the Employment Wage Subsidy Scheme. First 5 commits to reaching funding levels of approximately €1 billion by 2028.

Table 1.1: Budget allocations for early learning and care and school age childcare €m, 2015-2020

Early Learning Care and School Age Childcare Outturn	2015 (€m)	2016 (€m)	2017 (€m)	2018 (€m)	2019 (€m)	2020 (€m)
	260	344	464	485	574	638

Source: Department of Children, Equality, Disability, Integration and Youth

Note: Sector-specific expenditure in 2020 was reduced significantly as a result of COVID-19, which resulted in temporary closure and reduced participation in ELC and SAC settings. The table above does not show whole-of-Government supports in 2020 through the Temporary Wage Subsidy Scheme and the Employment Wage Subsidy Scheme.