I propose to take Questions Nos. 130 and 131 together.
An Expert Group was established in September 2019 to develop a new funding model for the sector. Under their terms of reference, the Expert Group was not asked to propose changes to the current model of delivery (i.e. privately-operated provision), rather that the Group should seek to further achieve policy objectives of quality, affordability, accessibility and contributing to addressing disadvantage in a privately-operated system through increased public funding and public management.
In December 2021, Government adopted the 25 recommendations contained in the Expert Group report, Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare. The recommendations were accepted in full by Government and implementation of this new funding model is well underway. This new funding model will support delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families. To achieve this, there is a need for greater State investment and greater public management of provision.
Of the 25 recommendations, three are grouped under the title 'Role of the State'. In particular, the final recommendation states that, “[I]n the medium term, the Minister should mandate the Department to examine whether some element of public provision should be introduced alongside private provision .”
Taken together, these recommendations reflect a key theme of the report, which is the importance of strengthened State involvement and enhanced public management in the sector, in conjunction with increased State funding. This is underpinned by a cultural shift to a partnership relationship between providers and the State that reflects the public good dimension of early learning and childcare, with new responsibilities on both sides.
In September 2022, I launched Together for Better, the new funding model for early learning and childcare. This new funding model supports the delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families as well as stability and sustainability for providers. Together for Better brings together three major programmes, the Early Childhood Care and Education (ECCE) programme, including the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS) and the new Core Funding scheme.
Core Funding, which began in September 2022, is the new funding stream worth €259 million in full year costs to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.
The new funding model being implemented aims to transform the sector to one that is increasingly publicly funded and publicly managed, delivering a service for the public good, through a partnership between the State and providers, to the benefit of children, parents, practitioners, and society overall.
This is the start of a multi-annual investment plan. It, along with other Budget 2023 announcements realises the First 5 target of investment of €1 billion five years ahead of schedule. Core Funding introduces a strategic way of funding the sector and begins to implement the recommendations of the Expert Group to develop a new funding model.
Together for Better begins a journey that I am confident will see exceptional standards of early learning and childcare achieved, delivering Government commitments in Partnership for the Public Good , expanding the sector and growing capacity through public management and investment, and ensuring positive outcomes for children, their families, and society overall.