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Early Childhood Care and Education

Dáil Éireann Debate, Wednesday - 16 December 2020

Wednesday, 16 December 2020

Questions (250)

Aengus Ó Snodaigh

Question:

250. Deputy Aengus Ó Snodaigh asked the Minister for Children, Equality, Disability, Integration and Youth the estimated cost to increase the standard and higher capitation rate for the ECCE scheme by increments of €2.50 up to €27.50 for the standard capitation rate. [43902/20]

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Written answers

€289.3m euro has been allocated to the Early Childhood Care and Education programme in 2021.

The Early Childhood Care and Education programme runs for 38 weeks each programme year. The standard capitation rate paid to providers is €69 per child, per week, and the higher capitation rate paid is €80.25 per child, per week. The programme currently provides 15 hours of free early learning and care per week.

The table below shows the financial impact of increasing the ECCE standard and higher capitation rates as per the question.

Cost of Increasing ECCE Capitation Rates

Capitation Increase

Standard Capitation Rate

Higher Capitation Rate

Full Year Cost (€m)

Increase (€m)

€0.0

€69.0

€80.3

€289.3

n/a

€2.5

€71.5

€82.8

€298.6

€9.3

€5.0

€74.0

€85.3

€308.0

€18.7

€7.5

€76.5

€87.8

€317.4

€28.1

€10.0

€79.0

€90.3

€326.7

€37.4

€12.5

€81.5

€92.8

€336.1

€46.8

€15.0

€84.0

€95.3

€345.4

€56.1

€17.5

€86.5

€97.8

€354.8

€65.5

€20.0

€89.0

€100.3

€364.2

€74.9

€22.5

€91.5

€102.8

€373.5

€84.2

€25.0

€94.0

€105.3

€382.9

€93.6

€27.5

€96.5

€107.8

€392.3

€103.0

As AIM funding is intrinsically linked to ECCE capitations any increase in rates or durations for the ECCE programme has an impact on associated AIM costs.

While AIM Levels 7 is awarded on a weekly basis (210 euros per week), the underlying basis for this figure is the cost of ECCE capitation for 3 children. If a €2.50 increase in ECCE capitation was required, there may be a case for a corresponding 3.6 % increase in AIM Level 7 costs.

Initial estimates indicate that the programme will cost circa €29m in 2021 based on current AIM level 7 projected applications.

The table below captures the impact that the outlined increases would have on the estimated allocation for AIM Level 7 in 2021, on a pro rata and percentage increase basis:

Associated Costs of Increasing ECCE Capitation Rates

Capitation Increase

AIM level 7 Full Year Cost (€)

Increase (€m)

€0.0

€29.5

€2.5

€30.6

€1.1

€5.0

€31.6

€2.1

€7.5

€32.7

€3.2

€10.0

€33.7

€4.2

€12.5

€34.8

€5.3

€15.0

€35.8

€6.3

€17.5

€36.9

€7.4

€20.0

€37.9

€8.4

€22.5

€39.0

€9.5

€25.0

€40.0

€10.5

€27.5

€41.1

€11.6

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