Dáil Éireann Debate, Tuesday - 13 June 2023
1080. Deputy Brendan Griffin asked the Minister for Children, Equality, Disability, Integration and Youth if a policy advisor will meet with a childcare representative (details supplied) from County Kerry to discuss issues affecting the sector following the introduction of Core funding; and if he will make a statement on the matter. [28039/23]
View answerMy officials engage extensively with provider representatives and providers of all types and continue to do so, via various specific consultation activities and through various fora, including through the Early Learning and Childcare Stakeholder Forum.
Additionally, there are a number of ways whereby providers can raise general concerns about issues affecting the sector since the introduction of Core Funding. As a first step, I would encourage anyone with individual concerns or questions about Core Funding to contact their local CCC for support and guidance. Contact details are available here: myccc.ie/where-is-my-nearest-ccc.
The following context may also be of use to the Deputy:
In September 2022, I launched Together for Better, the new funding model for early learning and childcare. This new funding model supports the 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.
Core Funding, which began in September 2022, is the new funding stream worth €259 million in full year costs. 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.
Core Funding is funding directly to providers (supply-side funding) and is designed to meet the combined objectives of:
• Improved affordability for parents/guardians by ensuring that fees do not increase;
• Improved quality through, among other things, better pay and conditions for the workforce;
• Supporting Employment Regulation Orders through the Joint Labour Committee;
• Supporting the employment of graduate staff; and
• Improved sustainability and stability for services.
One of the key features of Core Funding is the introduction of a system of fee management, to ensure that affordability measures are passed on to parents/guardians. To achieve this, Core Funding introduced an effective fee freeze for the September 2022-August 2023 programme year. This will stabilise the fee levels and ensure the affordability benefits of the NCS and ECCE subsidies are felt by parents/guardians.
The Core Funding Partner Service Funding Agreement clearly lays out the fundamental elements of Core Funding Fee Management for Year 1. To support services, parents/guardians and the CCCs, the Department has published 'Guidelines to support Fee Management' and an 'Overview of the Core Funding Fee Review Process'. These documents provide examples to assist with understanding of the new fee management conditions and review process.
first5fundingmodel.gov.ie/wp-content/uploads/2023/05/Together-for-Better-Guidelines-on-Fee-Management-7.pdf.
In Budget 2023, I secured an additional €28 million for year 2 of Core Funding, which represents an 11% increase to bring the overall budget to €287 million. Additionally, I announced the new allocation model for Year 2 of the Core Funding scheme (September 2023 to August 2024), as follows:
• 8.47m towards funding the natural growth of the sector.
• €6.11m towards non-staff overheads, to support Partner Services with increases to non-staff costs while maintaining the fee management system.
• €2.2m towards administrative staff time.
• €4m towards the removal the year 3 requirement for the Graduates Premiums, underpinned by EROs.
• €7.22m for new targeted measures which are aimed at improving the sustainability of smaller and sessional Partner Services.
