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Childcare Services

Dáil Éireann Debate, Wednesday - 9 March 2022

Wednesday, 9 March 2022

Questions (149)

Peadar Tóibín

Question:

149. Deputy Peadar Tóibín asked the Minister for Children, Equality, Disability, Integration and Youth the engagements he or his Department have had with childcare providers in relation to the capping of parent's fees. [13148/22]

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Written answers

On 7 December, I was pleased to launch a report on a new funding model for Early Learning and Care and School-Age Childcare, 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 recommendations of the Expert Group are designed to deliver quality for children, affordability for

On 7 December, I was pleased to launch a report on a new funding model for Early Learning and Care and School-Age Childcare, Partnership for the Public Good. This report was delivered by an Expert Group which was independently chaired and comprised national and international experts. 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 Expert Group undertook a comprehensive programme of research and stakeholder consultation and engagement to inform their work over three phases. I am grateful to the wide range of individuals and organisations that took part in this programme of stakeholder consultation and engagement, including parents, providers and the workforce.  Phases 2 and 3 of the consultation process used the Early Learing and Childcare Stakeholder Forum as its reference group which include a large number of provider organisations.  Approaches to fee management were discussed throughout the programme of consultation, particularly during the Phase 2 sessions on Parental Affordability and Partnership between the State and Services.

Material relating to the work of the Expert Group, including their report, research papers and all outputs from stakeholder consultation, are available on a dedicated website, www.first5fundingmodel.gov.ie .

The work of the Expert Group informed the package of measures announced in Budget 2022. The introduction of fee management measures is one of the recommendations of the Expert Group, as approved by Government. Fee management will start with a requirement for providers to maintain fees at or below September 2021 levels to access the new Core Funding scheme and once-off Transition Fund.  Further information on proposed fee management mechanisms in the longer term is available in the Group's report.   

Contingent on an Employment Regulation Order being agreed by the Joint Labour Committee, Core Funding will operate from September 2022 to support improved quality, affordability, and sustainability. 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, including staff costs. Core Funding will also contribute to cost increases related to non-staff costs (for example, utilities, rent).

The level of investment being made available for Core Funding is an acknowledgement that high quality ELC and SAC costs more than the current income to the sector. The aim of Core Funding is to allow providers’ costs to increase to improve quality but to ensure these costs are not passed onto parents in fees and that services are not made unsustainable.

ELC and SAC employers will continue to benefit from the exemption to the turnover rule for the Employment Wage Subsidy Scheme (EWSS) until April 2022. 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.

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