Dáil Éireann Debate, Tuesday - 26 April 2022
1106. Deputy Fergus O'Dowd asked the Minister for Children, Equality, Disability, Integration and Youth if he will address the concerns raised by a Montessori school (details supplied) in respect of the core funding model; and if he will make a statement on the matter. [19501/22]
View answer1121. Deputy Ged Nash asked the Minister for Children, Equality, Disability, Integration and Youth his views on the policy issues raised by a person (details supplied) regarding the new core funding model; and if he will make a statement on the matter. [19796/22]
View answerI propose to take Questions Nos. 1106 and 1121 together.
In December 2021, Government adopted the 25 recommendations contained in an Expert Group report, Partnership for the Public Good: A New Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC).
The new funding model will support delivery of ELC and SAC for the public good, for quality and affordability for children, parents and families. To achieve this, there is a need for greater State investment and greater public management of provision.
Core Funding is the new funding stream to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and to improve affordability for parents, as well as ensuring a stable income to providers.
Core Funding will operate alongside the National Childcare Scheme and the ECCE programme and constitute additional income for providers on top of funding for these schemes, as well as income from parental fees.
One of the key conditions of Core Funding will be the requirement for providers to maintain fees at or below September 2021 levels. This will ensure that parents feel the full affordability effects of the National Childcare Scheme and the ECCE programme. Core Funding will also include conditions in relation to quality improvements in services and transparency in relation to operations.
Extensive information has been communicated to the sector, including detail on the way in which Core Funding will be allocated to individual services. A Ready Reckoner calculator has also been launched to assist providers in estimating the impact of Core Funding for their individual service.
Core Funding is distributed in a fair and reasonable manner that is related to services’ costs of delivery. Sessional services with standard capitation, Full Time, Part Time and School Age services will all see substantial increases in funding. Most ECCE services currently in receipt of higher capitation rates will also benefit significantly. No service will lose out. Indeed in the correspondence referred to, the service in question will see a substantial percentage increase in income by the provider's own calculations.
City/County Childcare Committees (CCCs) have received training in order to assist providers in calculating their potential Core Funding allocations. I would encourage providers to contact their local CCC for guidance and support in understanding the impacts and benefits of Core Funding for their service. Contact details for CCCs are available at myccc.ie/where-is-my-nearest-ccc and providers can reach out for support at any time.
It is important to acknowledge that Core Funding will intentionally address some of the existing disparities in funding levels across ECCE and non-ECCE provision, providing funding proportionate to the age ratio of children being cared for and supporting the employment of graduate Lead Educators across ELC provision as well as graduate Managers. While Core Funding will operate in addition to and alongside ECCE (standard capitation), AIM, CCSP and NCS, it replaces ECCE higher capitation and incorporates funding previously allocated to the discretionary Programme Support Payments (PSP) from September 2022. This sees public funding for the employment of graduates in ELC more fairly distributed across the system .
Core Funding is related to the costs of delivery. Services opening for longer hours or offering more places will receive a higher value of Core Funding than other services. This is because their costs of operation are higher. The majority of Core Funding (i.e. €183 million of the €221 million) will be distributed in this way based on a service's capacity. This €183 million includes allocations for improvements in staff pay and conditions (€138 million), for administrative staff/time (€25 million), and a contribution to non-staff overhead costs (€20 million). It is important to note that sick pay, and other employer costs, are factored in to the estimated staff costs allocation in Core Funding. In addition, a further €38 million is allocated to contribute to support graduates to be Lead Educators across ELC and to support graduates as Managers in ELC or combined ELC and SAC services. Heretofore funding has only been available in respect of graduate Room Leaders in the ECCE programme.
In December 2021, I also launched Nurturing Skills: The Workforce Plan for Early Learning and Care and School-Age Childcare, 2022-2028. Nurturing Skills aims to strengthen the ongoing process of professionalisation for those working in early learning and care and school-age childcare.
Nurturing Skills commits to the provision of part-funded places on flexible education programmes at levels 6 to 8 for Early Years Educators working in the sector. Plans for the new funding scheme are currently being developed. This new funding will support upskilling and strengthen career development pathways for those working in the sector, reducing the cost to educators of undertaking further and higher education qualifications. The new funding will also develop and introduce mechanisms for providing financial support to services to help meet the costs of releasing staff to go on student practice placements and study leave.
In response to queries received by my Department on a number of matters, including many of those highlighted in the correspondence detailed, such as the impact of Core Funding on smaller Early Childhood Care and Education (ECCE) services, additional information relating to Core Funding is now available at first5fundingmodel.gov.ie/core-funding.
The new funding model being implemented aims to transform the sector to one that is increasingly publicly funded and publicly managed, delivering a service for the public good, through a partnership between the State and providers, to the benefit of children, parents, practitioners, and society overall. This transformation starts with Core Funding and the new approach will entail a shift in the relationship between the State and providers in relation to delivering ELC and SAC, with new responsibilities on both sides. Core Funding is open to all registered providers subject to their agreement to the terms and conditions of the funding. It is my ambition that the maximum number providers choose to participate in this partnership to deliver ELC and SAC for the public good and come into contract for Core Funding. Core Funding however is optional for providers.
I look forward to working together in partnership with providers to deliver ELC and SAC services for the public good.
