Dáil Éireann Debate, Tuesday - 8 November 2022
760. Deputy Richard Bruton asked the Minister for Children, Equality, Disability, Integration and Youth when the payment level for the ECCE scheme was last revised; if he has assessed whether it continues to adequately cover the costs; and if he will make a statement on the matter. [54602/22]
View answerThe ECCE programme is delivered over 3 hours per day, 15 hours per week and 38 weeks of the year. There is no charge to parents for the ECCE programme. ECCE capitation is paid to providers in respect of each eligible child enrolled.
In 2010, when the ECCE Programme was first introduced, the standard capitation was €64.50, the higher capitation rate (for services with graduate room leaders) was €75 and the adult child ratio was 1:10. This equated to a maximum weekly income to providers of €645 (with standard capitation) and €750 (with higher capitation) for every 10 children to one adult.
In 2012, as part of austerity measures, the standard capitation was reduced to €62.50 and the higher capitation rate was reduced to €73. To offset this, the adult child ratio increased from 1:10 to 1:11. This equated to a maximum weekly income to providers of €687.50 (with standard capitation) and €803 (with higher capitation) for every 11 children to one adult.
In 2016, ECCE capitation was restored to €64.50 (standard capitation) and €75 (higher capitation) though the increased ratio remained in place. This equated to a maximum weekly income to providers of €709.50 (with standard capitation) and €825 (with higher capitation) for every 11 children to one adult.
In 2017, a non-contact time payment – later known as Programme Support Payment (PSP) – was introduced. This provided additional funding to ECCE providers equivalent to 7 additional days at standard capitation rates (equivalent to an additional €26.14 per week per 11 children or €2.38 per week per child). Funding for the ECCE Programme and PSP combined equated to a maximum weekly income to providers of €735.64 (where standard capitation applied) and €851.14 (where higher capitation applied) for every 11 children to one adult.
In 2018, ECCE capitation was increase by 7% to €69.00 (standard capitation) and €80.25 (higher capitation). Funding for the ECCE Programme and PSP (equivalent to 7 additional days at standard capitation rates equivalent to an additional €27.96 per week per 11 children or €2.54 per week per child) combined equated to a maximum weekly income to providers of €786.96 (where standard capitation applied) and €910.71 (where higher capitation applied) for every 11 children to one adult.
In 2021, the PSP was increased an equivalent of 8 additional days at standard capitation rates (equivalent to an additional €31.96 per week per 11 children or €2.91 per child per week). Funding for the ECCE Programme and PSP combined equated combined equated to a maximum weekly income to providers of €790.96 (where standard capitation applied) and €914.71 (where higher capitation applied) for every 11 children to one adult.
Since September 2022, Core Funding is operating alongside the ECCE programme (at standard capitation rates) and incorporates funding traditionally provided under PSP and higher capitation. Funding for the ECCE Programme and Core Funding combined equates to a maximum weekly income to providers of €866.25 (where standard capitation applies) and €932.85 (where higher capitation would have traditionally applied) for every 11 children to one adult.
Overall, for every 11 children to one adult, this equates to an increase in the maximum income since the introduction of the ECCE programme of 34% (where standard capitation applies) and 24% (where higher capitation traditional applied)
|
Year |
Maximum hourly/weekly income per room with one member of staff and maximum number of children as per Regulations |
Maximum hourly/weekly income per room with one member of staff and maximum number of children as per Regulations |
|
Room with staff member with Level 6 qualification |
Room with staff member with Level 7 or above qualification |
|
|
2010/11 |
€43.00 p.h. / €645.00 p.w. |
€50.00 p.h. / €750.00 p.w |
|
2011/12 |
€43.00 p.h. / €645.00 p.w. |
€50.00 p.h. / €750.00 p.w |
|
2012/13 |
€45.83 p.h. / €687.50 p.w |
€53.53 p.h. / €803.00 p.w |
|
2013/14 |
€45.83 p.h. / €687.50 p.w |
€53.53 p.h. / €803.00 p.w |
|
2014/15 |
€45.83 p.h. / €687.50 p.w |
€53.53 p.h. / €803.00 p.w |
|
2015/16 |
€45.83 p.h. / €687.50 p.w |
€53.53 p.h. / €803.00 p.w |
|
2016/17 |
€47.30 p.h. / €709.50 p.w |
€55.00 p.h. / €825.00 p.w |
|
2017/18 |
€47.30 p.h. / €735.64 p.w |
€55.00 p.h. / €851.14 p.w |
|
2018/19 |
€50.60 p.h. / €786.96 p.w |
€58.85 p.h. / €910.71 p.w |
|
2019/20* |
€50.60 p.h. / €786.96 p.w |
€58.85 p.h. / €910.71 p.w |
|
2020/21* |
€50.60 p.h. / €786.96 p.w |
€58.85 p.h. / €910.71 p.w |
|
2021/22* |
€52.73 p.h. / €790.96 p.w |
€60.98 p.h. / €914.71 p.w |
|
% change 2010/11 – 2021/22 |
22.6% |
22.0% |
|
2022/23 (since introduction of core funding) |
€57.75 p.h. / €866.25 p.w |
€62.19 p.h. / €932.85 p.w |
|
% change 2010/11 – 2022/23 |
34.3% |
24.4% |
This excludes funding under the Access and Inclusion Model attached to the ECCE programme.
Under the Access and Inclusion Model (AIM) a fully qualified Inclusion Coordinator (InCo) in an ECCE service, receives an increase in the rate of capitation payable to the service of €2 (pro-rata), per ECCE registered child, per week over 38 weeks. This allowance is paid according to the number of ECCE registered children attending the service in an ECCE room, with no upper limit on the number of children. For the programme call 2022/2023 to date (October 2022), there are 2,063 InCos spread across 3,907 ECCE registered services - that represents 53% of services who receive capitation for InCo.
Additional capitation is also paid to ECCE providers under AIM Level 7 to support inclusion of children by reducing the adult-child ratio within the ECCE room. In January 2021, the payments increased by 7% from €195 per week to €210 per week. A further increase of 7% in September 2022 increased AIM Level 7 capitation from €210 to €240. For the programme call year 2022/2023 to date (October 2022), there are 2,079 services who were paid additional assistance, with a number of these services receiving more than one additional capitation. This represents 53% of services registered in the ECCE programme.
This also excludes substantial Covid-19 supports of more than €1bn provided to the sector over the course of the pandemic (2020-2022), including the Employment Wage Subsidy Scheme (EWSS), which:
- at enhanced rates from October 2020- January 2022 covered 80% of staff costs /50% of staff costs at a monthly cost of €34m.
- at standard rates, from August-September 2020 and February 2022 covered 50% of staff costs/38% of operating costs cost €22m per month and EWSS at flat rates cost €11m per month over March and April 2022 covering 25% at a monthly cost of €22m
- at flat rates, from March and April 2022, covered 25% of staff costs/ 11% of operating costs at a monthly cost of €11 per month
In addition, the temporary Transition Fund - put in place to bridge the gap between the end of the EWSS and the introduction of core funding - operated from May-August 2022. Funding under the Transition Fund equated to a further increase of 7% in ECCE capitation for that time period.
The collection of information on income and costs is essential for the full understanding of this complex and diverse sector in order to inform the development of policy. As recommended by the Expert Group on a new funding model for the sector, there needs to be full visibility and understanding of financial information in the sector in order to better understand the impact and interaction of income, costs, surplus and profit in the sector.
I am pleased therefore that the recent data collection for the 2021/2022 Annual Sector Profile, including questions on income and costs, has been completed by 93% of services. This new and emerging data will allow the Department to rerun income and cost analysis and ascertain the latest available financial position to inform the next policy developments.
I would also note that my Department has commenced a review of ECCE which is expected to be completed by Q3 2023. The review will assess whether the ECCE Programme is meeting its core objectives and will identify any changes or improvements that can be made to the Programme, based on international evidence, experience to date as well as consultation from a wide number of stakeholders.
