Dáil Éireann Debate, Wednesday - 16 February 2022
170. Deputy Catherine Murphy asked the Minister for Children, Equality, Disability, Integration and Youth if he has engaged with representatives of owners of childcare facilities in the context of mitigating cost inflation of services and ways to reduce the need to increase costs for parents using ECCE and creche services. [8620/22]
View answerEnsuring improved affordability of Early Learning and Care and School-Age Childcare (ELC and SAC) for parents is a key priority for Government. I am also very conscious of the pressure that ELC and SAC providers are under regarding their operating costs.
As part of Budget 2022, I was pleased to announce that Government investment in ELC and SAC next year will reach €716 million.
From September 2022, a major new funding stream - Core Funding - will be introduced. Under the new funding stream, in return for a commitment that fees to parents will not increase, providers will be supported in meeting their operating costs, including increased costs related to improved quality measures. The funding will support the quality of services by better enabling providers to attract and retain qualified staff; establish career structures; introduce or improve other features of provision that are demonstrated to contribute to quality (e.g. non-contact time, planning, training, curriculum implementation). It is important to support services with staff costs, which comprise approximately 68% of a service's operating costs. Core Funding will also contribute to cost increases related to non-staff costs (for example, utilities, rent).
Core Funding will ensure that services remain sustainable in the context of a commitment not to increase fees. In a full year, €207m will be available for providers under this new funding stream.
Budget 2022 also announced that the Employment Wage Subsidy Scheme (EWSS) would continue to be available to the ELC and SAC sector. Employers in the sector have been entitled to access the EWSS, with an exemption from the requirement to demonstrate the 30% drop in turnover that applies to other sectors since August 2020. Between October 2020 and January 2022 the enhanced rate of EWSS equalled €34 million, per month, for ELC providers, covering, on average, 80% staff costs or 50% total operating costs.
From 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week applies; 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.
Between the end of the EWSS and the introduction of Core Funding, a Transition Fund will be in place to support providers. The main conditionality of access to the Transition Fund will be that services do not increase the fees charged to parents above September 2021 levels. The sum paid to each service under the Transition Fund will depend on the service’s capacity, location, and service type.
Where providers require further financial assistance in addition to current supports available, the Department operates a Covid-19 Impact Support Scheme. This is additional to the existing financial supports and is to support the sustainability of ELC and SAC services who may be left with short-term sustainability concerns due to lower attendance or higher costs arising from Covid-19. This scheme supports services to remain open without increasing fees to parents or guardians.
Sustainability Funding also continues to be available to providers where there are sustainability difficulties and I have requested that providers would exhaust this route before considering increases in fees for parents. I encourage providers to contact their local City/County Childcare Committee if they require any further information or support: myccc.ie/.
