Dáil Éireann Debate, Tuesday - 31 May 2022
524. Deputy Jennifer Whitmore asked the Minister for Children, Equality, Disability, Integration and Youth if his attention has been drawn to childcare facilities increasing fees despite the Transition Fund being in place; the way that his Department is monitoring compliance in this regard; the steps that a parent can take if their childcare facility is engaging in this practice; and if he will make a statement on the matter. [28137/22]
View answer525. Deputy Jennifer Whitmore asked the Minister for Children, Equality, Disability, Integration and Youth if the fee increase imposed on parents in November 2021 still stands in cases in which a childcare facility sends an increased fees list to Pobal in September 2021 and were waiting approval on same; and if he will make a statement on the matter. [28138/22]
View answerI propose to take Questions Nos. 525 and 524 together.
One of my top priorities in Government is to improve affordability of Early Learning and Care (ELC) and School Age Childcare (SAC) for parents. The package of measures I announced in Budget 2022 is designed to ensure that fees to parents do not increase and that the full affordability benefits of the National Childcare Scheme (NCS) and the Early Childhood Care and Education (ECCE) programme are felt without being absorbed in fee increases.
I am concerned to hear of providers proposing to increase their fees at a time when the Government continues to support ELC and SAC providers significantly as they exit the Employment Wage Subsidy Scheme (EWSS).
Between May and August a Transition Fund is in place. This is a temporary, once-off scheme, to support providers transition from the EWSS to the new Core Funding stream. The Transition Fund is operating ahead of the introduction of a new Core Funding stream in September 2022.
In the case of the Transition Fund and Core Funding, the contractual requirement is that fees to remain at or below September 2021 levels for the period of the schemes. These requirements for both the Transition Fund and Core Funding will apply to all services who contract into the schemes. Participation in both schemes is optional.
I am pleased that approximately 93% of providers have now signed-up to participate in the Transition Fund and thereby agree to maintain their fees at or below September 2021 rates. I have had very few reports of ELC and SAC providers increasing their fees and in the instances referenced in the Deputy's questions, it is not clear whether or not the providers in question are participating in the Transition Fund. If so, they are required by contract not to charge fees above those charged in September 2021.
A key element in ensuring the affordability policy objectives of the schemes are met is helping parents know what services are participating in the Transition Fund (and subsequently Core Funding), and providing the corresponding commitment in respect of fees. To this end, my Department has published a list of all services/providers who have signed up to the Transition Fund. This list is available at first5fundingmodel.gov.ie/core-funding/
Pobal, as scheme administrator, manages compliance on all ELC and SAC schemes. Any parent or provider who has any queries about the operation of the Transition Fund or Core Funding can contact their local City/County Childcare Committee (CCC) for assistance and support at: myccc.ie/where-is-my-nearest-ccc If it is the case that the providers in question are participating in the Transition Fund, I would be grateful if further detail of the instances referred to could be raised with the local CCC for further examination.
The introduction of fee management measures is one of the recommendations of an Expert Group on a new funding model for ELC and SAC, as approved by Government. The 'freezing' of fees at or below September 2021 levels is the first step in this process. The fee management system will be developed further in future years. Further information on proposed fee management mechanisms in the longer term is available in the Group's report, 'Partnership for the Public Good', which was published in December 2021.
Core Funding will be funding directly to providers and is designed improve affordability, quality, inclusion and sustainability. Core Funding will operate alongside the NCS and ECCE and constitute additional income for providers on top of funding for these schemes, as well as income from parental fees.
Extensive information on Core Funding is being communicated to the sector, including detail on the way in which Core Funding will be allocated to individual services. A Ready Reckoner has also been launched to assist providers in estimating the potential value of Core Funding for their individual service, as well as to test different scenarios. The provider contract for Core Funding will be published in June so applicants can review what they will later be asked to sign in August. At the end of August, Core Funding payments to providers commence.
