Dáil Éireann Debate, Wednesday - 15 December 2021
146. Deputy Brendan Griffin asked the Minister for Children, Equality, Disability, Integration and Youth if advice will be provided in relation to the new funding model for early learning and school age children as per correspondence from a person (details supplied); and if he will make a statement on the matter. [62167/21]
View answerOn 7 December, I was pleased to launch a report on a new funding model for Early Learning and Care (ELC) and School-Age Childcare (SAC), entitled Partnership for the Public Good. This report was delivered by an Expert Group which was independently chaired and comprised national and international experts.
The new funding model outlined in Partnership for the Public Good comprises four key elements: two new elements (Core Funding and Tackling Disadvantage funding) and two elements which are developments on the existing funding approaches of the ECCE programme and the NCS. These four elements, and their associated conditions, form an interlocking and integrated system of funding which is designed to ensure progress on each of the main goals of ELC and SAC policy, and move in the direction of enhanced public management.
1. Core Funding, a new supply-side payment for providers designed to support quality (including improved staff pay), sustainability, and enhanced public management, with associated conditions in relation to fee control and cost transparency, incorporating funding for administration and to support the employment of graduate staff;
2. Funding for new universal and targeted measures to address socio-economic disadvantage;
3. The ECCE programme, but with funding to support the employment of graduate staff incorporated into Core Funding, and AIM extended beyond the ECCE programme (in line with First 5 commitments);
4. An amended NCS to provide enhanced universal support to all families, tailor additional supports to high volume users of services, and resolve certain issues arising from the NCS work/study test or wraparound policy.
I was very happy to have had the opportunity to meet the chair of the Expert Group in advance of the Estimates process to allow the emerging recommendations to shape my approach to Budget 2022. As announced on Budget day, 2022 will see a transformative and ground-breaking package of measures introduced to begin to implement the vision set out in the group’s report. €78 million is being made available to enable this, including €69 million for a Core Funding stream, equivalent to €207 million in a full year. Core Funding will be introduced from September 2022.
Currently, significant additional investment is being made in the sector through the Employment Wage Subsidy Scheme (EWSS), which will remain available to the sector until April 2022, with a continued exemption to the turnover rule for employers in the sector. Since August 2020, ELC employers have been entitled to access the EWSS, with an exemption to having to demonstrate the 30% drop in turnover that applies to other sectors.
Between October 2020 and November 2021 enhanced rate EWSS equalled €34 million, per month, for ELC providers, covering, on average, 80% staff costs or 50% total operating costs. Enhanced rates of EWSS will continue for December 2021 and January 2022.
From 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week will apply; this amounts to €22 million per month for ELC providers, covering, on average, 50% staff costs or 38% total operating costs.
For March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022; this amounts of €11 million per month in the sector, and will cover, on average, 25% staff costs or 11% total operating costs.
With the additional costs of play-pods and other public health measures estimated to be no more than €12 million per month, the EWSS at enhanced and standard rates far exceeds what is required by the sector to adhere to public health guidance. EWSS at flat rates is just marginally below this.
A once-off transition fund of up to €37m will operate from May to August 2022, to support providers in the period leading up to the new Core Funding stream, in return for a commitment not to increase fees from September 2021 levels. The sum paid to each service under the Transition Fund will depend on the service’s capacity and location, and will reflect opening hours. Information will be available in early 2022 about the exact levels of funding for individual services under the Transition Fund.
Budget 2022 also saw two changes to the NCS which will result in more parents getting more subsidised hours of ELC and SAC, contributing to realising the full vision of the Expert Group. This will see the NCS universal subsidy extended to all children under 15 benefitting up to 40,000 children and the removal of the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours, benefiting an estimated 5,000 children from low income families.
Sustainability Funding also continues to be available to providers where there are sustainability difficulties. The Covid-19 Impact Support funding strand is available for both community and private services for eligible ELC and SAC services that require further financial assistance in addition to current support measures available.
The full implementation of the Expert Group's recommendations will be a multi-annual process, with funding likely becoming available on an incremental basis. The introduction of Core Funding and other Budget 2022 measures begin the implementation of the recommendations, substantially increase public funding for ELC and SAC and put in place the conditions to develop a partnership with the sector for the public good.
Material relating to the work of the Expert Group, including Partnership for the Public Good, an information webinar and other publications are available on a dedicated website, www.first5fundingmodel.gov.ie.
