For the programme year 2022/2023, eligible services can deliver the ECCE programme at standard capitation and opt-in to Core Funding which provides payments for a base rate on a services capacity, and graduate premiums for lead educators and managers.
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. ECCE higher capitation and PSP for all schemes are not available for programme year 2022/2023.
Under Core Funding, the vast majority of services will see an increase in funding, and less than 1% of services will see no change. Through top-up payments, no service will see a decrease in funding if their combined annual value of Core Funding is less than the combined value of the difference between ECCE standard capitation and higher capitation plus programme support payments for the 2021/22 programme year, as outlined in the Core Funding Partner Service Funding Agreement. 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.
Core Funding is open to all eligible providers subject to their agreement to the recently-published Funding Agreement. Becoming a Core Funding Partner Service is, of course, optional but the Minister looks forward to a very high proportion of providers becoming Partner Services.
Providers are encouraged to contact their local CCC for support in understanding the benefits and impacts of Core Funding for their service.
