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Child Care Services.

Dáil Éireann Debate, Tuesday - 9 October 2007

Tuesday, 9 October 2007

Questions (138, 139, 140, 141, 142, 143, 144, 145, 146)

Michael Ring

Question:

221 Deputy Michael Ring asked the Minister for Health and Children when full information packs on the proposed NCIP community childcare subvention scheme 2008 to 2010 will be made available to community based childcare operators; if she will extend the deadline for applications to the new scheme in view of the lack of information currently available; and if she will make a statement on the matter. [22359/07]

View answer

Written answers

As signalled at the launch of the National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP, a new scheme to support community childcare services with a focus on disadvantage will be introduced on 1 January 2008 and will continue to complement the universal supports in place for all parents in the form of Child Benefit and the Early Childcare Supplement. The Community Childcare Subvention Scheme (CCSS) has been allocated €153 million over the next 3 years representing a 16% increase in funding over the EOCP staffing scheme. Under the new scheme, services will be grant aided according to the service they provide and the profile of the parents benefiting from their service. In turn, the subvention received by the services will be reflected in the reduced fees for parents who qualify as disadvantaged under the scheme.

Following the Government decision in July 2007 to adopt the new Scheme, officials in my Office wrote to all of the community childcare services in receipt of existing grant support to advise them of the changes being introduced and inviting them to attend information seminars which were arranged in a number of venues around the country for late September and early October. These have taken place and have provided very useful feedback. The details of the new scheme, the rates of subvention which will be available to community childcare services in respect of disadvantaged parents, and the timeframe within which the new arrangements are being implemented, were also outlined. The information seminars are being followed up by updated information packs, which take account of some of the issues raised and responded to at the seminars. These are expected to issue shortly along with the forms which the services will need to complete as part of the application process.

Under the new scheme, parents with children in such services and in receipt of most social welfare payments (or participating in a scheme such as Community Employment which demonstrates an underlying entitlement to same) will see a €80 weekly subvention in respect of full daycare (with pro-rata reductions in respect of shorter hour services). Parents in receipt of Family Income Supplement (FIS), will see a €30 weekly subvention in respect of full daycare (with pro-rata reductions). A further subvention of €30 per week will be paid where the subvented child is a baby, in recognition of the higher costs associated with the care of children aged under 1 year. Parents who do not qualify under either of these categories will be charged the cost price for their childcare service, however, as community not-for-profit services will, generally, have availed of capital grant aid under the EOCP or NCIP removing the requirement to cover rent and/or a mortgage, and as the services are run on a not-for-profit basis, this should still be significantly below the market price.

It is considered that the new scheme will provide an effective framework for the continued targeting of additional resources towards disadvantaged parents and their children while continuing to support community childcare services generally. The scheme has been informed by and takes account of a number of enhancements recommended by the report of the Value for Money Review of the EOCP. These include the fact that the subvention to services will be more responsive to the level of service provided as well as the degree of parental disadvantage supported and the ceiling for funding, which existed under the previous scheme, is being removed. Account will also be taken of all of the operational costs of the service rather than staffing costs alone. Services, including full-time, part-time and sessional ones, which at present are, in some cases, inaccessibly priced for disadvantaged parents, will be available to them at more appropriate rates under the new scheme.

The transitional arrangements which accompany the introduction of the new scheme, will ensure that existing grant recipients can continue to be funded at their current levels until 1st July 2008. This is to ensure that existing childcare services are facilitated to adjust to the new scheme, including making any adjustments necessary to their fee structures. As signalled when I announced the new scheme in July this year, the transitional period between now and 1 July 2008 will also be used to monitor and review the impact it will have on individual groups, on the basis of the more detailed and comprehensive data which is due to be received from applicants in November. If appropriate, any adjustments necessary to the scheme to secure the best outcomes for childcare services and for disadvantaged parents and their children will be considered on the basis of this data and well in advance of the commencement of the new funding levels in July 2008.

Michael Ring

Question:

222 Deputy Michael Ring asked the Minister for Health and Children the number of community based childcare providers currently availing of the staffing grants available under the equal opportunities childcare programme, on a county basis. [22360/07]

View answer

Under the Equal Opportunities Childcare Programme 2000-2006 (EOCP), which is co-funded under the EU Social Fund (ESF), targeted support was provided through the staffing support grant scheme whereby community based not-for-profit childcare providers with a focus on disadvantage were awarded grant aid towards their staffing costs to allow them provide services to families which otherwise would not have been able to afford the full economic cost of the service. The following table shows the number of childcare providers in receipt of staffing grants, on a county basis.

County

Number of Facilties in Receipt of Staffing Grants

Carlow

12

Cavan

24

Clare

16

Cork

97

Donegal

44

Dublin

188

Galway

70

Kerry

43

Kildare

7

Kilkenny

20

Laois

13

Leitrim

24

Limerick

36

Longford

14

Louth

17

Mayo

49

Meath

10

Monaghan

25

Offaly

13

Roscommon

20

Sligo

20

Tipperary

33

Waterford

19

Westmeath

18

Wexford

29

Wicklow

16

Total

877

Michael Ring

Question:

223 Deputy Michael Ring asked the Minister for Health and Children if she will reverse the abolition of the staffing grants for community based childcare providers with the proposed introduction of the NCIP community childcare subvention scheme 2008 to 2010, due to the serious effect this will have on childcare places in rural Ireland particularly for the smaller community childcare providers in rural areas. [22361/07]

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Michael Ring

Question:

224 Deputy Michael Ring asked the Minister for Health and Children the possible effect on community based childcare providers particularly the smaller providers based in rural areas, with the introduction of the new subvention scheme under the NCIP community childcare subvention Scheme 2008 to 2010. [22362/07]

View answer

I propose to take Questions Nos. 223 and 224 together.

The main supports the Government makes available to parents to assist them with their childcare costs are Child Benefit and the Early Childcare Supplement. The latter payment, which is in recognition of the higher childcare costs of pre-school children, is the responsibility of my Office, and it alone amounts to expenditure of over €400m in a full year. These payments are universal and benefit all parents, regardless of their income, labour market status or the type of childcare they choose and regardless of whether they live in urban or rural areas. In addition to these universal supports, Government childcare policy has also recognised the need to target additional supports towards disadvantaged families.

Under the Equal Opportunities Childcare Programme 2000-2006 (EOCP), which is co-funded under the EU Social Fund (ESF), targeted support was provided through the staffing support grant scheme whereby community based not-for-profit childcare providers with a strong focus on disadvantage were awarded grant aid towards their staffing costs to allow them to operate reduced fees to disadvantaged parents. Funding under this scheme was originally awarded for a limited period during which services were expected to move towards sustainability. This funding was subsequently continued to the end of 2007, where it was considered necessary to enable services to continue to make their services accessible to disadvantaged parents. This continuation funding was subject to the condition that tiered fee structures were implemented by the services in question.

As signalled at the launch of the National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP, a new scheme to support community childcare services with a focus on disadvantage will be introduced on 1 January 2008 and will continue to complement the universal supports in place for all parents. The Community Childcare Subvention Scheme (CCSS) has been allocated €153 million over the next 3 years representing a 16% increase in funding over the EOCP staffing scheme. Under the new scheme, services will be grant aided according to the service they provide and the profile of the parents benefiting from their service. In turn, the subvention received by the services will be reflected in the reduced fees for parents who qualify as disadvantaged under the scheme.

In practice, this will mean that parents with children in such services and in receipt of most social welfare payments (or participating in a scheme such as Community Employment which demonstrates an underlying entitlement to same) will see a €80 weekly subvention in respect of full daycare (with pro-rata reductions in respect of shorter hour services). Parents in receipt of Family Income Supplement (FIS), will see a €30 weekly subvention in respect of full daycare (with pro-rata reductions). A further subvention of €30 per week will be paid where the subvented child is a baby, in recognition of the higher costs associated with the care of children aged under 1 year. Parents who do not qualify under either of these categories will be charged the cost price for their childcare service, however, as community not-for-profit services will, generally, have availed of capital grant aid under the EOCP or NCIP removing the requirement to cover rent and/or a mortgage, and as the services are run on a not-for-profit basis, this should still be significantly below the market price.

It is considered that the new scheme will provide an effective framework for the continued targeting of additional resources towards disadvantaged parents and their children while continuing to support community childcare services generally. The scheme has been informed by and takes account of a number of enhancements recommended by the report of the Value for Money Review of the EOCP. These include the fact that the subvention to services will be more responsive to the level of service provided as well as the degree of parental disadvantage supported and the ceiling for funding, which existed under the previous scheme, is being removed. Account will also be taken of all of the operational costs of the service rather than staffing costs alone. Services, including full-time, part-time and sessional ones, which at present are, in some cases, inaccessibly priced for disadvantaged parents, will be available to them at more appropriate rates under the new scheme.

The Community Childcare Subvention Scheme will not discriminate against rural services and the number of parents in rural areas supported by the new scheme is not expected to be lower than in urban areas. Per capita, the majority of the social welfare benefits which are referenced by the new schemes are availed of by more people outside the Dublin area than in it and parents in receipt of Farm Assist will attract the higher level of subvention. Data available from EOCP grant applications also suggests that the costs of running a rural service, and therefore the costs charged to parents, are lower than those for services in urban areas.

Transitional arrangements have been made under which existing grant recipients will continue to be funded at their current levels until 1st July 2008. This is to ensure that existing childcare services are facilitated to adjust to the new scheme, including making any adjustments necessary to their fee structures. As signalled when I announced the new scheme in July this year, the transitional period between now and 1 July 2008 will also be used to monitor and review the impact it will have on individual groups, on the basis of the more detailed and comprehensive data which is due to be received from applicants in November. If appropriate, any adjustments necessary to the scheme to secure the best outcomes for childcare services and for disadvantaged parents and their children will be considered on the basis of this data and well in advance of the commencement of the new funding levels in July 2008.

Ciaran Lynch

Question:

225 Deputy Ciarán Lynch asked the Minister for Health and Children if her attention has been drawn to the concerns raised regarding his proposal to restructure community childcare under the National Childcare Investment Programme Community Childcare Subvention Scheme 2008 to 2010; her views on whether the proposed restructuring will result in additional charges being placed on parents, additional operating costs for community childcare providers that will have to be recouped locally and a reduction of service and the possible closure of some community childcare centres; and if she will make a statement on the matter. [22380/07]

View answer

Ciaran Lynch

Question:

251 Deputy Ciarán Lynch asked the Minister for Health and Children if her attention has been drawn to the concerns raised regarding the proposal to restructure community childcare under the NCIP community childcare subvention scheme 2008 to 2010; if the proposed restructuring will result in additional charges being placed on parents and additional operating costs for community childcare providers that will have to be recouped locally and a reduction of service and the possible closure of some community childcare centres; and if she will make a statement on the matter. [22426/07]

View answer

Kathleen Lynch

Question:

260 Deputy Kathleen Lynch asked the Minister for Health and Children if her attention has been drawn to the concerns that community childcare facilities have expressed regarding the new NCIP community childcare subvention scheme; her views on whether many community childcare facilities will experience considerable financial shortfalls under the new funding guidelines and that this could lead to the closures of some facilities; her further views on whether working parents on low incomes will be penalised through the ending of the equal opportunities childcare programme as the new NCIP subvention scheme is only available to social welfare recipients or those on family income supplement; and if she will make a statement on the matter. [22468/07]

View answer

I propose to take Questions Nos. 225, 251 and 260 together.

Under the Equal Opportunities Childcare Programme 2000-2006 (EOCP), which is co-funded under the EU Social Fund (ESF), targeted support was provided through the staffing support grant scheme whereby community based not-for-profit childcare providers with a strong focus on disadvantage were awarded grant aid towards their staffing costs to allow them to operate reduced fees to disadvantaged parents. Funding under this scheme was originally awarded for a limited period during which services were expected to move towards sustainability. This funding was subsequently continued to the end of 2007, where it was considered necessary to enable services to continue to make their services accessible to disadvantaged parents. This continuation funding was conditional on a strong focus on disadvantage and that tiered fee structures were implemented by the services in question which ensured that childcare places subsidised were targeted towards those most in need.

As signalled at the launch of the National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP, a new scheme to support community childcare services with a focus on disadvantage will be introduced on 1 January 2008 and will continue to complement the universal supports in place for all parents. The Community Childcare Subvention Scheme (CCSS) has been allocated €153 million over the next 3 years representing a 16% increase in funding over the EOCP staffing scheme. Under the new scheme, services will be grant aided according to the service they provide and the profile of the parents benefiting from their service. In turn, the subvention received by the services will be reflected in the reduced fees for parents who qualify as disadvantaged under the scheme.

In practice, this will mean that parents with children in such services and in receipt of most social welfare payments (or participating in a scheme such as Community Employment which demonstrates an underlying entitlement to same) will see a €80 weekly subvention in respect of full daycare (with pro-rata reductions in respect of shorter hour services). Parents in receipt of Family Income Supplement (FIS), will see a €30 weekly subvention in respect of full daycare (with pro-rata reductions). A further subvention of €30 per week will be paid where the subvented child is a baby, in recognition of the higher costs associated with the care of children aged under 1 year. Parents who do not qualify under either of these categories will be charged the cost price for their childcare service, however, as community not-for-profit services will, generally, have availed of capital grant aid under the EOCP or NCIP removing the requirement to cover rent and/or a mortgage, and as the services are run on a not-for-profit basis, this should still be significantly below the market price.

It is considered that the new scheme will provide an effective framework for the continued targeting of additional resources towards disadvantaged parents and their children while continuing to support community childcare services generally. The scheme has been informed by and takes account of a number of enhancements recommended by the report of the Value for Money Review of the EOCP. These include the fact that the subvention to services will be more responsive to the level of service provided as well as the degree of parental disadvantage supported and the ceiling for funding, which existed under the previous scheme, is being removed. Account will also be taken of all of the operational costs of the service rather than staffing costs alone. Services, including full-time, part-time and sessional ones, which at present are, in some cases, inaccessibly priced for disadvantaged parents, will be available to them at more appropriate rates under the new scheme.

The new scheme has clear advantages over its predecessor. There is an increase in the level of funding available under it, and a majority of services will benefit from the changes it introduces. Transitional arrangements have been made under which existing grant recipients will continue to be funded at their current levels until 1st July 2008. This is to ensure that existing childcare services are facilitated to adjust to the new scheme, including making any adjustments necessary to their fee structures. As signalled when I announced the new scheme in July this year, the transitional period between now and 1 July 2008 will also be used to monitor and review the impact it will have on individual groups, on the basis of the more detailed and comprehensive data which is due to be received from applicants in November. If appropriate, any adjustments necessary to secure the best outcomes for childcare services and for disadvantaged parents and their children will be considered on the basis of this data and well in advance of the commencement of the new funding levels in July 2008.

Enda Kenny

Question:

226 Deputy Enda Kenny asked the Minister for Health and Children the change in the funding mechanism for community crèches; if she will provide details of the timing, rationale and the impact of these changes; and if she will make a statement on the matter. [22631/07]

View answer

Michael Creed

Question:

227 Deputy Michael Creed asked the Minister for Health and Children the changes envisaged in the funding of community childcare facilities; if he will elaborate on the NCIP subvention scheme; the consultations that have taken place with community organisations in this regard; and if she will make a statement on the matter. [22668/07]

View answer

I propose to take Questions Nos. 226 and 227 together.

Under the Equal Opportunities Childcare Programme 2000-2006 (EOCP), which is co-funded under the EU Social Fund (ESF), targeted support was provided through the staffing support grant scheme whereby community based not-for-profit childcare providers with a strong focus on disadvantage were awarded grant aid towards their staffing costs to allow them to operate reduced fees to disadvantaged parents. Funding under this scheme was originally awarded for a limited period during which services were expected to move towards sustainability. This funding was subsequently continued to the end of 2007, where it was considered necessary to enable services to continue to make their services accessible to disadvantaged parents. This continuation funding was subject to the condition that tiered fee structures were implemented by the services in question.

As signalled at the launch of the National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP, a new scheme to support community childcare services with a focus on disadvantage will be introduced on 1 January 2008 and will continue to complement the universal supports in place for all parents. The Community Childcare Subvention Scheme (CCSS) has been allocated €153 million over the next 3 years representing a 16% increase in funding over the EOCP staffing scheme. Under the new scheme, services will be grant aided according to the service they provide and the profile of the parents benefiting from their service. In turn, the subvention received by the services will be reflected in the reduced fees for parents who qualify as disadvantaged under the scheme.

In practice, this will mean that parents with children in such services and in receipt of most social welfare payments (or participating in a scheme such as Community Employment which demonstrates an underlying entitlement to same) will see a €80 weekly subvention in respect of full daycare (with pro-rata reductions in respect of shorter hour services). Parents in receipt of Family Income Supplement (FIS), will see a €30 weekly subvention in respect of full daycare (with pro-rata reductions). A further subvention of €30 per week will be paid where the subvented child is a baby, in recognition of the higher costs associated with the care of children aged under 1 year. Parents who do not qualify under either of these categories will be charged the cost price for their childcare service, however, as community not-for-profit services will, generally, have availed of capital grant aid under the EOCP or NCIP removing the requirement to cover rent or a mortgage, and as the services are run on a not-for-profit basis, this should still be significantly below the market price.

It is considered that the new scheme will provide an effective framework for the continued targeting of additional resources towards disadvantaged parents and their children while continuing to support community childcare services generally. The scheme has been informed by and takes account of a number of enhancements recommended by the report of the Value for Money Review of the EOCP. These include the fact that the subvention to services will be more responsive to the level of service provided as well as the degree of parental disadvantage supported and the ceiling for funding, which existed under the previous scheme, is being removed. Account will also be taken of all of the operational costs of the service rather than staffing costs alone. Services, including full-time, part-time and sessional ones, which at present are, in some cases, inaccessibly priced for disadvantaged parents, will be available to them at more appropriate rates under the new scheme.

The new scheme has clear advantages over its predecessor. There is an increase in the level of funding available under it, and a majority of services will benefit from the changes it introduces. Existing EOCP staffing grant recipients who enter the new scheme will continue to be funded at their current levels until July 2008. My Office has engaged in a series of meetings with existing grant recipients to outline to them the details of the new scheme and to gather feedback from the services themselves. A meeting with representatives of the City and County Childcare Committees has also taken place.

Transitional arrangements have been made under which existing grant recipients will continue to be funded at their current levels until 1st July 2008. This is to ensure that existing childcare services are facilitated to adjust to the new scheme, including making any adjustments necessary to their fee structures. As signalled when I announced the new scheme in July this year, the transitional period between now and 1 July 2008 will also be used to monitor and review the impact it will have on individual groups, on the basis of the more detailed and comprehensive data which is due to be received from applicants in November. If appropriate, any adjustments necessary to the scheme to secure the best outcomes for childcare services and for disadvantaged parents and their children will be considered on the basis of this data and well in advance of the commencement of the new funding levels in July 2008.

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