Dáil Éireann Debate, Thursday - 13 October 2022
139. Deputy Brian Leddin asked the Minister for Children, Equality, Disability, Integration and Youth if he will outline the way core funding has operated since coming into operation; the number of childcare services that have signed a core funding contract; his plans with regard to expanding the scheme in the future; and if he will make a statement on the matter. [50607/22]
View answerAffordable, accessible, high-quality and sustainable early learning and childcare is a key priority for Government. On 15th September, I launched Together for Better, the new funding model for early learning and childcare. This new funding model will support delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families.
Together for Better brings together three major programmes, the Early Childhood Care and Education programme, including the Access and Inclusion Model, the National Childcare Scheme and the new Core Funding scheme.
I am delighted that to date, 91% - well over 4,000 – early learning and childcare providers have signed up to Core Funding. This is a tremendous level of uptake and will make a positive impact for parents and children using these services through investment in quality and in affordability with more funding for staff and a commitment not to increase fees.
Core Funding has a budget of €259 million in full year costs for year 1 of the programme (September 2022-August 2023) to start this partnership for the public good between the State and providers.
The majority of Core Funding is distributed based on a service's capacity - the opening hours, opening weeks and the age group of children for whom services are provided as well as number of places available. This includes allocations for improvements in staff pay and conditions, for administrative staff/time, and a contribution to non-staff overhead costs. Contact and non-contact time, holiday pay, sick pay and other employer costs, are all factored in to the staff costs allocation in Core Funding.In addition, further funding 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. The Graduate Lead Educator Premium in Core Funding is paid as a top up on the number of hours of provision that is led by a graduate. The Graduate Manager Premium is paid as a top up on the number of hours of operation of a service whose manager is a graduate.
Core Funding allows for substantial increases in the total cost base for the sector, related both to pay and non-pay costs, without additional costs being passed on to parents.
Participation in Core Funding means that fees cannot increase above September 2021 levels for Partner Services. Core Funding also requires Partner Services to offer the NCS and/or ECCE to all eligible parents to ensure that parents can avail of their full entitlement to subsidised provision. The combination of the fee freeze plus access to increased subsidies ensures improved affordability for parents which is particularly important in the context of rising prices for goods and services across the economy.
The introduction of fee management is one of the recommendations of the Expert Group in their report, Partnership for the Public Good . The fee freeze for the first year is the first step in this few management process and will be further developed in future years as more information about income and costs in the sector is analysed.
Core Funding has also supported the agreement of historic Employment Regulation Orders leading to wage increases for the large majority of staff in the sector.
There is also evidence of increased capacity in the sector, with initial analysis showing that increased child places funded through Core Funding are the type of capacity that is in highest demand relative to supply, particularly more baby and toddler place hours, as well as school-age place hours. The geographical breakdown across the country also indicates expansion in urban and commuter areas where there has been significant pressure on places.
In Budget 2023, I secured an additional €52 million to meet the cost of this increase in capacity in Year 1 of the Scheme. I also secured an additional €28 million to increase the Core Funding allocation to €287 million for Year 2 of the Scheme.
I have committed €4 million of that additional allocation in Year 2 to remove the 3-year experience rule for graduate premiums (subject to amendment to the ERO) with the remaining €24 million to introduce other developments to the Scheme – that will continue to focus on meeting the combined objectives of Core Funding - improved quality for children, including through pay and conditions for staff in the sector, improved affordability for parents, as well as ensuring a stable income to providers.
Further interrogation of the new Core Funding application data is required in order to most effectively design developments in Year 2 of the scheme.
Together for Better aims to transform the sector and I am committed to working with Partner Services delivering early learning and childcare for the public good.
