First 5 was launched in 2018 with an ambitious investment target of at least doubling expenditure in the sector by 2028 to approximately €1 billion. A new funding model was to be the key vehicle to ensure that such significant additional investment delivers for children, families and the State. Further to Budget 2023 announcements, that achievement will be reached in 2023, five years ahead of schedule, with commitment to spend over €1 billion on early learning and childcare. This significant investment will be delivered through Together for Better, the new funding model which is now in place. The table below sets out the steady increase in investment over the past number of years.
A large portion of the new investment will be channeled through a new funding scheme, Core Funding, worth €266 million in 2023 and through significant developments to the National Childcare Scheme which will be worth €358 million in 2023, along with investment of €308 million in the Early Childhood Care and Education programme including the Access and Inclusion Model.
The UNICEF-recommended investment level in ELC and SAC is 1% of GDP while the OECD average is 0.9% of GDP.
It is important to note that Irish GDP is seen as an extremely poor point of international comparison. A more appropriate comparator for the Irish context recommended by the Economic Statistics Review Group is modified GNI. (GNI*). This is designed to exclude globalisation effects that disproportionately impact the measurement of the size of the Irish economy. In 2021, Ireland’s modified GNI was €234 billion. Investment of 1% or 0.7% of modified GNI would therefore equal €2.3 billion and €2.1 billion respectively.
In international comparison terms, it is also relevant to note that in general children start primary school in Ireland somewhat earlier than in many other countries. Investment in the early years of primary school is not included in the expenditure figures above.
Exceeding the investment target of €1 billion five years ahead of schedule is a clear demonstration of the value Government places on early learning and childcare, given the benefits it confers to children and their families, society and the economy.
A revised investment target will be considered in the context of the second implementation plan for First 5, to be finalised in 2023.
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2015
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€260m
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2016
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+€85m(+32%)
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€345m
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Expansion of ECCE programme from September 2016 so that children can enrol in pre-school at age three, and remain in pre-school until they start primary school, introduction of three enrolment dates (September, January and April) and restoration of the ECCE capitation rates to pre-2012 levels
Introduction of AIM from September 2016
A range of quality measures (i.e. audit of quality, Learner Fund, Síolta Quality Assurance Programme, enhanced inspection, including introduction of education focused inspections
A School-Age Childcare Capital Fund
An additional 8,000 places under the Childcare Subvention Scheme and funding to establish a project to commence work on developing the NCS
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2017
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+€121m(+35%)
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€466m
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Full year cost of ECCE expansion and AIM
Introduction of the NCS from September 2017 (to include a new universal subsidy for children under 3 and targeted subsidies for children from 0-15)
The introduction of a new Programme Support Payment (PSP)
A range of quality measures (i.e. sustainability fund, enhanced inspection)
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2018
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+€19m(+4%)
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€485m
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Expansion of the ECCE programme to 2 full years and a 7% increase in ECCE capitation (standard rate increased from €64.5 to €69 and higher rate increased from €75 to €80.25)
Increase in the PSP
A range of quality measures (i.e. CCC funding, sustainability fund, enhanced inspection, capital)
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2019
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+€89m(+18%)
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€574m
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Full year cost of ECCE expansion
Increase in funding for NCS and legacy schemes
Introduction of a one off NCS Transitional PSP
Increase in AIM funding
Increase in PSP
A range of quality and other measures (i.e. enhanced inspection, First 5 development, childminding initiative, capital
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2020
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+€64m
(+11%)
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€638m
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Increase in funding for NCS and legacy schemes to increase the minimum and maximum NCS hours from September 2020 (from 15 to 20 and 40 to 45 hours respectively), and to provide for a further full year of NCS ‘Savers’
Increase in AIM funding
A range of quality and other measures (i.e. enhanced inspection, First 5 implementation, development of a new funding model initiative, sustainability funding)
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2021
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-
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€638m
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Increase in AIM Level 7 Capitation from €195 per week to €210 per week
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2022
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+€41m(+6%)
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€679m
(plus once off €37m in Covid-19 supports)
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Introduction of NCS universal and discontinuation of practice of deducing hours in pre-school and school against NCS hours Introduction of Core Funding
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2023
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+€346m
(+51%)
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€1,025m
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Continued implementation of the Core Funding Scheme for the first full programme year, September 2022 to August 2023 and into the next programme year from September 2023, with additional funding being made available to cover the costs of increased levels of capacity and numbers of graduates in year one and for a number of enhancements in year two of the Scheme - Continued implementation of the National Childcare Scheme (NCS), offering supports to a greatly expanded cohort of children and families at significantly higher subsidy levels– with the hourly universal subsidy under the NCS increasing from 0.50c per hour to €1.40 per hour from January 2023
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