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Early Childhood Care and Education

Dáil Éireann Debate, Thursday - 7 July 2022

Thursday, 7 July 2022

Questions (120)

Jennifer Murnane O'Connor

Question:

120. Deputy Jennifer Murnane O'Connor asked the Minister for Children, Equality, Disability, Integration and Youth if he will provide an update on funding supports for ELC and SAC providers, including for ECCE-only providers; and if he will make a statement on the matter. [36701/22]

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Written answers

Government has provided significant investment in early learning and childcare in recent years and I intend to continue this towards reaching the First 5 commitment of investing of at least €1 billion in the sector by 2028.

From August 2020, early learning and childcare services had been able to access the Employment Wage Subsidy Scheme (EWSS) without having to demonstrate a reduction in turnover. This continued to be available until the end of April. This significant level of funding to the sector has ensured that fees have remained largely static for the last two years and that providers have continued to be adequately supported.

The investment in the sector through EWSS, on top of the various others Covid-related funding and other measures, tailored and adjusted to the needs at different stages of the pandemic, have significantly supported the sector.

Looking to the longer terms plans for the sector, 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 the delivery of ELC and SAC for the public good, for quality and affordability for children, parents and families. The new funding model will incorporate the National Childcare Scheme (NCS) and Early Childhood Care and Education (ECCE) programme and introduce a new funding stream, Core Funding, from September.

Core Funding is worth €221 million in full year costs 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 improve affordability for parents as well as ensuring a stable income to providers. Core Funding allows for an estimated 19% increase in the total cost base for the sector.

Core Funding will contribute to services’ sustainability and will significantly increase income for the overwhelming majority of services and provide greater funding stability. Core Funding will be allocated based largely on capacity. Core Funding will give providers a stable income source based on the nature of the service they deliver. A provider’s income will now consist of Core Funding, NCS and ECCE subsidies, and parental fees. Structuring Core Funding primarily based on capacity means that services will have an allocation each year that will not fluctuate in line with children’s attendance.

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, distributing public funding in respect of graduate staff more fairly across ELC provision.

Core Funding is equivalent to an increase of at least 9.5% in funding for ECCE services not led by a Graduate Lead Educator. At a minimum, for every ECCE child €78.75 per week is now available (compared to €71.90 previously from ECCE standard capitation and PSP combined).

Because Core Funding is paid in respect of places rather than children, effectively this could mean a greater ‘per child’ marginal increase if the service has unfilled capacity. With average ECCE occupancy of 9 children per staff member, Core Funding is equivalent to weekly per child capitation of €80.92.

The vast majority of services will see an increase in funding, and less than 1% of services will see no change. No service will see a decrease in funding. For any service that does experience financial difficulties, a Sustainability Fund will be in place. This new strand of the Sustainability Fund, linked to Core Funding, will be designed to provide an extra safety net for providers. This will be open to both private and community providers.

Following the tapering of EWSS and prior to the introduction of Core Funding, a Transition Fund is available to providers between May and August. The primary conditionality of the Transition Fund is an agreement not to increase fees from September 2021 levels. I am delighted to report that so far 95% of services have agreed to operate a freeze on parental fees by coming into contract for the Transition Fund.

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, those who work in the sector, 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. 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 and I look forward to working with these partner services.

I look forward to working together in partnership with providers to deliver ELC and SAC services for the public good.

Question No. 121 answered with Question No. 109.
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