Childcare Services

Dáil Éireann Debate, Wednesday - 26 January 2022

Wednesday, 26 January 2022

Questions (121)

Kathleen Funchion

Question:

121. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated total income, public money and parental fees, respectively that is paid to providers in a year; if the suggestion in a report (details supplied) in relation to the make-up of provider income still stands; and if not, if the rates have changed following the impact of Budget 2022 provisions. [3650/22]

Written answers

Minister for Children, Equality, Disability, Integration and Youth

My officials have estimated that the total income to the sector of both public funding and parental fees is approximately €1 billion. 60% of the sector's income is estimated to come from the State with the remaining 40% from parental fees.

The Deputy will be aware that the amount of State funding provided to the sector continues to increase. Budget 2022 makes provision for €69 million to be invested in the sector between September and December through a new funding stream called Core Funding. This is equivalent to €207 million in full year costs from 2023. Adding the full year cost of this additional budget line, and assuming no other changes, would equate to an income breakdown of 66% from State funding, 34% from parental fees.

Budget 2022 makes provision for a €37 million Transition Fund to support services following the end of EWSS until the introduction in Core Funding. This is a one-off Covid-19-related measure.

A number of enhancements to the National Childcare Scheme were also announced in Budget 2022. These changes will result in changes to the breakdown in income to the sector between public funding and parental fees, but the precise impact depends on a number of factors, including changes in the capacity of the sector, parental usage and fees, and scheme uptake.

These figures exclude State funding provided outside of my Department's schemes, notably the Employment Wage Subsidy Scheme (EWSS), which represents a substantial support for the sector. EWSS at enhanced rates amounts to €34 million per month, and at standard rates it amounts to €22 million per month.