Dáil Éireann Debate, Wednesday - 13 January 2021
614. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the way in which the amount that Pobal states services owe has been calculated; and if a breakdown will be provided. [44735/20]
View answerThe Temporary Wage Subsidy Childcare Scheme (TWSCS) was expediently launched on 15 April 2020 as a unique sector specific response to the COVID-19 pandemic crisis. This scheme was in addition to the Revenue led Temporary Wage Subsidy Scheme (TWSS) made available to other sectors.
The TWSCS supported approximately 3,855 or 85% of early learning and childcare services and ensured that over 22,000 staff in the sector retained their employment relationship with their employer. The 12-week scheme is estimated to cost approximately €50m.
While the unique 12 week scheme was being developed, preliminary payments were paid in advance to providers to assist their cash flow, enable them to retain their staff and cover some of their overhead costs. These preliminary/estimated payments resulted in some surplus funding being provided.
It was noted from the outset of the scheme, a reconciliation would take place between the final calculated amount actually due to providers and the preliminary payments that were made.
These reconciliations arise from “preliminary” payments which were made in April, May and June 2020 to ensure that providers received funding in a timely manner to enable them pay their staff and avoid laying them off, and cover some of their overhead costs. They were based on estimates of each individual service’s staff and overhead requirements, in advance of the more detailed TWSCS subsidy calculations.
The alternative for Pobal and DCYA would have been to await the detailed application form and verification, but this would have delayed payments and could have been detrimental to providers with serious income and cash flow difficulties caused by the COVID-19 closure.
Providers are able to view details of the TWSCS overpayments on the providers platform on Pobal's IT system PIP. The TWSCS contract value is provided, along with the amount paid, resulting in a balance due. However, should providers have concerns in relation to the overpayment amounts shown, or require further detail, they should contact the provider centre in the first instance to highlight and address their concerns.
Many services had the excess amount in their accounts and were in a position to repay it. In fact several providers expressed a wish to return the excess funding immediately and have done so in advance of the recoupment process which commenced in November 2020. Refunds of overpayments continue to be made to Pobal by providers in January 2021.
For providers who did not have funds on hand at the time and therefore were unable to refund the excess funding immediately, an alternative arrangement was put in place. The deduction of the overpayment was spread over the remaining Programme payments from the 20 November to the end of 2020. However, my department acknowledged that, despite the wide ranging Covid-19 supports available to date, there may be some providers who may continue to experience ongoing viability concerns and this alternative arrangement may not them suit at that time. In such cases, my Department put a third option in place. My Department asked and indeed encouraged any provider who had concerns to register a service request on Hive. The provider would be contacted by Pobal and an opportunity for an alternative plan would be discussed.
Providers were given an opportunity make final amendments to their subsidy application form in November 2020. Any changes made to the application form in the amendment window would result in a recalculation of the 12 week subsidy. Any recalculation of the TWSCS subsidy may result in the overpayment amount being adjusted.
The final 12 week subsidy recalculation was run in early December. Pobal are now in the process of completing recalculation process and adjusting overpayments amounts to be repaid if necessary, for the providers who made adjustments to their application form. It is anticipated the recalculation process will be finalised in the coming weeks as Pobal continue to make the final Revenue and quality assurance checks as required.
As stated previously, Pobal recognises the immense pressure that services have been under and is committed to continuing to work with the Department and the sector to support it through these exceptionally difficult times.
The measures put in place to support the ELC and SAC sector since March 12 have been very successful including the TWSCS and the EWSS. Approximately the same number of services have reopened in late 2020 as were open in late 2019, despite reports that up to 1,000 would close. This is a phenomenal result and reflects both the effectiveness of the Government measures and the hard work of the sector.
