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Early Childhood Care and Education

Dáil Éireann Debate, Tuesday - 15 February 2022

Tuesday, 15 February 2022

Questions (521)

Jennifer Whitmore

Question:

521. Deputy Jennifer Whitmore asked the Minister for Children, Equality, Disability, Integration and Youth when reforms to the funding model for early learning and childcare services will be introduced; and if he will make a statement on the matter. [7667/22]

View answer

Written answers

The report of an Expert Group, Partnership for the Public Good: A new Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC), was published on 7 December 2021 following consideration by Government and acceptance of its 25 recommendations. Work has now commenced on implementation of these recommendations.

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 Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS).

These four elements, and their associated conditions, will 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.

Announcements in Budget 2022 signalled the commitment to the first stage of implementation of the Expert Group’s recommendations.

In particular, a new Core Funding stream for services to support improved quality, affordability, and sustainability and the establishment of an Employment Regulation Order, is being introduced in September 2022 and will be worth up to €69 million in 2022, equivalent to €207 million in a full year.

A Transition Fund will be also available to ELC and SAC services from May to August inclusive, during the period between the phasing out of the Employment Wage Subsidy Scheme (EWSS) in April and the introduction of the new Core Funding stream in September. The Transition Fund will also include the condition that services do not increase the fees charged to parents above September 2021 levels.

The introduction of fee control measures is one of the recommendations of the Expert Group, and further information on proposed fee management mechanisms in the longer term is available in the Group's report.

Budget 2022 also announced an extension in the age of children who are eligible for the universal National Childcare Scheme (NCS) subsidy and a change to how 'wraparound hours' for NCS subsidy are determined. These measures were also recommended by the Expert Group.

The recommendations of the Expert Group are designed to deliver quality for children, affordability for parents, stability for providers, and support employers to improve pay and conditions for staff. The report of the Expert Group is available here: first5fundingmodel.gov.ie/report/.

Full implementation of all recommendations will be progressed in the coming years as additional funding is secured through the annual Estimates process. An impact monitoring element of this approach to funding is also being developed which will capture data on key indicators that it is anticipated will be addressed through the scheme including workforce pay, qualifications, turnover rates, non-contact time etc. Progress on the implementation of the Expert Group’s recommendations will be reported in the context of the Annual Implementation Report for the First 5 whole-of-government strategy for babies, young children and their families.

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