The Transition Fund will provide up to €6.4 million per month to services for the period of time between the end of the Employment Wage Subsidy Scheme (EWSS) in April and the introduction of a strategic new approach to funding the sector from September, Core Funding.

In return for an agreement that fees will not increase above those which were charged in September 2021, this substantial level of funding will be offered to providers. Services that have increased their fees above September 2021 rates will be required to reduce them to September 2021 rates or below in order to qualify for the funding. This means that parents will not be faced with fee increases, and the full affordability effects of the National Childcare Scheme, and the universal Early Childhood Care and Education (ECCE) Pre-school Programme, will be felt by parents.