Robert Troy
Question:73. Deputy Robert Troy asked the Minister for Children, Equality, Disability, Integration and Youth the need to address the unintended anomalies in the core funding for early years settings. [32578/23]
View answerTuesday, 4 July 2023
Questions (73)
Written answers
I am very proud of the achievements of the new funding model, Together for Better, in its first year of operation since last September.
Core Funding, the new scheme worth €259 million in year 1 intentionally introduced Fee Management in a sustainable and considered manner. In return for providers receiving grants to support their operations, Fee Management means that fees are frozen at 2021 rates so parents’ costs do not increase. This Fee Management mechanism means that increases to National Childcare Scheme subsidies are fully felt by parents.
Another significant achievement of the new funding model is its connection with the historic Employment Regulation Orders. Last September, through the work of the Joint Labour Committee for Early Years Services, the first ever Employment Regulation Orders for the sector came into force, setting new minimum hourly rates of pay for different roles in the sector. It is estimated that 70% of those in the sector saw their wages rise as a result.
With 95% of services signed up for Core Funding in year 1, these benefits for parents, providers, staff and children are felt widely across the sector.
For 2023, I have grown the Core Funding budget again by 11% to reach €287 million, providing a sustainable platform for investment with increases for all services.
Investment in early learning and childcare is already at unprecedented levels with public funding for the first time reaching more than €1 billion in 2023 for early learning and childcare – a clear demonstration from Government of the value of the sector.
I am committed to continuing to grow this investment and making sure it delivers early learning and childcare for the public good, and I deem it entirely appropriate that the higher levels of public funding are accompanied by higher levels of public management of this funding.