Dáil Éireann Debate, Thursday - 24 March 2022
61. Deputy Peadar Tóibín asked the Minister for Children, Equality, Disability, Integration and Youth if he will outline the core funding proposals for the childcare sector and any delays in the publication of those proposals. [14269/22]
View answerBudget 2022 announced the introduction of the new Core Funding stream, the details of which were further articulated in Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare published in December 2021.
Core Funding will be available to Early Learning and Care (ELC) and School Age Childcare (SAC) providers for the 2022/2023 programme year, subject to an Employment Regulation Order being agreed by the Joint Labour Committee and coming into effect.
Core Funding is designed to meet the combined objectives of:
- Improved affordability for parents by ensuring that fees do not increase;
- Improved quality through, among other things, better pay and conditions for the workforce by supporting agreement on an Employment Regulation Order through the Joint Labour Committee;
- Supporting the employment of graduate staff; and
- Improved sustainability and stability for services.
Under Core Funding providers will be supported in meeting their operating costs, including increased costs related to improved quality, in return for a commitment that fees to parents will not increase. The commitment not to increase fees will ensure that the full affordability benefits of the Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS) are felt by parents.
Core Funding is equivalent to €221 million in a full programme year. €183 million of the €221 million will be distributed based on the capacity that the service is offering to provide (child places, age groups, hours and weeks). €38 million will be distributed in line with ELC graduate qualifications of ELC Lead Educators and Managers in ELC or combined ELC and SAC services.
The development of Core Funding is a significant milestone on the journey towards a new funding model. It aims to transform of the sector and establish a new type of partnership between providers and the State that reflects the importance of ELC and SAC for the public good.
On Monday 7th March I wrote to ELC and SAC providers to provide detailed information on how Core Funding will operate and to provide the rates at which it will be paid. I also launched an online tool or Ready Reckoner which allows ELC and SAC providers to see the potential impact of this funding on their individual service. The Core Funding Ready Reckoner is accessible to all on the Early Years Hive and is designed to give an idea of what services can expect to receive based on their characteristics and to allow different scenarios of provision to be tested. Further information is available on the website of the Early Years Hive and support, guidance and training is available through City and County Childcare Committees.
The key dates in preparation for Core Funding becoming operational for the 2022/2023 programme year are:
- 7th March: The online tool (Ready Reckoner) becomes available to provide approximate estimates of potential Core Funding values for individual services
Stage 1 of the application process opens in April:
- Begins with the Sector Profile and Income and Costs Survey, which is a pre-requisite for application for Core Funding
Stage 2 of the application process opens in June:
- Providers define their service’s profile and their capacity in detail in an online form
- Core Funding value is communicated to providers (subject to final verifications and confirmations)
- The provider contract will be published so applicants can review what they will later be asked to sign
Stage 3 of the application process opens in August:
- Individual contracts will start to be made available to successful applicants for signature
- End August: payments to providers commence. Payments will be made monthly in advance throughout the programme year.
In the interim period, until April 2022, ELC and SAC employers continue to be eligible to access the Employment Wage Subsidy Scheme (EWSS) without having to demonstrate the reduction in turnover which is required of other employers. EWSS has provided very substantial investment in the sector since August 2020. Following the cessation of EWSS at end April 2022, ELC and SAC providers will have access to a Transition Fund between May and August in advance of the introduction of Core Funding from September. An announcement with further detail on the Transition Fund is due to be made shortly.
