Dáil Éireann Debate, Thursday - 7 October 2021
143. Deputy Cathal Crowe asked the Minister for Children, Equality, Disability, Integration and Youth the status of work by the expert group established in September 2019 to develop a new funding model for ELC and SAC; and if he will make a statement on the matter. [48706/21]
View answer144. Deputy Ivana Bacik asked the Minister for Children, Equality, Disability, Integration and Youth if he will provide an update on the development and roll-out of a new funding model for childcare, for early learning and care and for school-age childcare in view of the recent crèche closures and fee increases in childcare facilities in an area (details supplied). [48516/21]
View answerI propose to take Questions Nos. 143 and 144 together.
First 5 commits to increasing investment in early learning and childcare to up to €1 billion by 2028 and a new funding model will be a key vehicle to ensure that such significant additional investment delivers for children, families and the State.
An Expert Group was established in September 2019 to develop a new funding for the sector. The Group is tasked with examining the current model of funding, its effectiveness in delivering quality, affordable, sustainable and inclusive services and considering how additional resourcing can best be structured in order to achieve these objectives.
The Group has met nineteen times to date, its report is currently being drafted and is on track to be submitted to me in November.
The development of the new funding model is supported by a significant programme of research. The research partner of the Expert Group has produced a series of working papers examining Ireland’s approach to this sector in an international context including papers on reducing costs to parents and mechanisms to control fees. The Group has also engaged in an extensive and detailed stakeholder consultation process.
Material relating to the work of the Expert Group, including reports from consultation and engagement, meeting documentation and research papers are available on a dedicated website, www.first5fundingmodel.ie.
In the immediate term, in addition to my Department's funding schemes, all services can participate in the Employment Wage Subsidy Scheme (EWSS). This provides an average of 50% of normal operating costs for services, at a value of some €34m to the sector each month. The EWSS has been paid at enhanced rates since October 2020. Most businesses must demonstrate a 30% reduction in turnover to be eligible for supports under the scheme. When the EWSS was introduced in August 2020, I negotiated a special arrangement for registered early learning and childcare services to be exempt from this turnover test. These arrangements remain in place. Government has assured businesses that there will be no cliff-edge in the removal of supports, and my officials are working on a smooth transition from EWSS for the early learning and childcare sector.
I recognise that early learning and childcare services are private businesses and are free to set their own policies regarding the charging of fees and contract conditions and I am aware that some services have notified parents of a future significant increase in fees. Given the substantial additional supports allocated to the sector, and the assurance that there will be no sudden withdrawal of Government supports, I do not believe there is a case for an increase to fees paid by parents at this time.
