Government is investing significantly in the early learning and childcare sector. In September, I launched Together for Better, an ambitious new funding model to support delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families as well as stability and sustainability for providers. Together for Better brings together three major programmes, the Early Childhood Care and Education (ECCE) programme, including the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS) and the new Core Funding scheme.
The original allocation for year 1 of Core Funding was €207 million. I grew this to €221 million in response to cost pressures, and increased that again to €259 million based on significant capacity growth in the sector.
The significant allocation on offer through Core Funding in year 1 is conditional on a fee freeze, support for new wage rates through an ERO and financial and operational transparency. These are central objectives of Core Funding and it is entirely appropriate that the substantial additional investment in the sector delivers for parents and for workers and allows the State to be assured that its funding is being spent appropriately.
For Core Funding year 2, I have secured a further €28 million, which will be designed and informed by emerging data from year 1 and other available evidence.
I am delighted that to date, 94% - well over 4,100 - providers have signed up to Core Funding.
Early learning and childcare services are diverse. While it was my ambition to have as high take-up as possible, at this moment in time 6% early learning and childcare services, less than 300 services, have chosen not to join Core Funding. 97% of community not-for-profit services have signed up. 92% of private for profit services have signed up.
Core Funding is distributed in a fair and reasonable manner that is related to services’ costs of delivery. Core Funding is allocated to services based on the number of child places being made available (whether filled or not), the age group of children for whom the places are available and the number of hours the places are available for, as well as the graduate qualifications of leaders in the service. These are the primary drivers of services costs and this is therefore the most proportionate and transparent manner to allocate funding.
Core Funding addresses 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. While Core Funding operates 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) – as recommended by the report of the Expert Group, Partnership for the Public Good.
Together for Better is about getting the most out of the three early learning and childcare programmes, and ensuring stability and sustainability in the sector. I have been unequivocal that I do not want any services to be faced with financial sustainability issues and I am fully committed to working with any such service to support them in delivering early learning and childcare for the public good.
Data from Tusla on numbers of closures in recent months show that the number of closures this year is broadly in line with other years, and reasons for closure (given to Tusla by providers that have closed) suggests considerable diversity in the reasons for closure. While some services have closed for financial or regulatory reasons, many have closed for other reasons (e.g. retirement of the owner/manager).
CCCs are receiving very small numbers of services reporting cases of financial unsustainability due to Core Funding. Just two services have applied for sustainability funding in 2022 and their difficulties predate Core Funding becoming available. Any provider who is experiencing challenges is encouraged to contact their CCC.
The new funding model was designed with extensive stakeholder consultation and engagement. Since Core Funding was announced, my Department has hosted eight meetings of the Early Learning and Childcare Stakeholder Forum and frequent meetings with provider representative groups on Core Funding since August. I have had further meetings with individual provider representative groups, and have also visited numerous services.
The overwhelming majority of services will benefit substantially from higher funding under Core Funding, supporting their sustainability. The Department, Pobal and the CCC continue to closely monitor trends concerning services entering case management and will continue to maintain the availability of Sustainability Funding for individual services at risk.
Moreover, in preparation for developments to Core Funding, my officials will draw on evidence – existing and new - to determine on how best to structure the additional funding I secured for year 2 of this scheme.
