Dáil Éireann Debate, Tuesday - 25 July 2023
998. Deputy Michael Healy-Rae asked the Minister for Children, Equality, Disability, Integration and Youth if an increase in funding and capitation rates will be given to improve the financial sustainability for services with regard to children and allow for higher staff wages; and if he will make a statement on the matter. [35995/23]
View answerThis Government has in 2023, for the first time, allocated more than €1 billion to early learning and childcare – a clear demonstration from Government of the value of the sector. Over the past eight budgets, investment in early learning and childcare has risen from €260 million in 2015 to € 1.025 billion in 2023, reaching the First 5 investment target 5 years ahead of time. This unprecedented investment speaks to the commitment of Government in prioritising early learning and childcare services.
In September 2022, Together for Better, the new funding model for early learning and childcare was launched, bringing together the ECCE programme, including the Access and Inclusion Model (AIM), the NCS and Core Funding, with a fourth programme, the Equal Participation Model in development.
The primary purpose of Core Funding is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.
Core Funding offers greater stability and sustainability for providers by substantially increasing the overall investment in the sector, particularly through a supply-side funding approach and in providing funding for spaces rather than participating children. Services can choose to spend their Core Funding on a wide range of expenditure areas related to the delivery of a quality service.
In terms of investment in the new Core Funding scheme, the initial investment in Budget 2022 of €207 million, was increased to €221 million in April 2022, and again increased to €259 million before the programme began in September 2022. For year 2 of the scheme, a further 11% increase in this budget or €28 million was secured. In total, there is now €287million provided to the sector for year 2 of Core Funding, providing a sustainable model with increases for all services. Further detail on the impacts of budget increases for sessional services have been recently published on our website: first5fundingmodel.gov.ie/core-funding/
Through ECCE capitation and Core Funding combined, services will receive minimum of €79.20 per child per week in capitation under the ECCE programme and maximum of €95.85 per child per week, with additional funding for graduate lead educators, graduate managers and for sessional services.
The introduction of a flat rate allocation of €4,075 for all sessional-only services will benefit approximately 1,700 Partner Services delivering the ECCE programme. The introduction of a minimum base rate allocation of €8,150 will benefit small, part time services and SAC services.
Services that are experiencing difficulty and who would like support are encouraged to contact their City/County Childcare Committee (CCC) to access case management supports. Services can be assisted on an individual basis through this route. Sustainability funding is available to Partner Services, community and private, who are experiencing financial difficulty. Partner Services can be assisted through the case management route to ensure their services remain sustainable under Together for Better.
Providers of early learning and care (ELC) and school-age childcare (SAC) are private businesses. As the State does not employ staff in ELC and SAC services, neither I nor my Department can set wage levels or determine working conditions for staff in the sector.
However, there is now, through the independent Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate pay rates for ELC and SAC services.
With effect from the 15 September 2022, two new Employment Regulation Orders for Early Years Services, which were negotiated through the JLC, came into effect which provide for minimum hourly rates of pay and other conditions of employment for various roles both in early learning and care services and in school-age childcare services.
The Orders are being supported by Core Funding, to support amongst other things, improvements in staff wages, alongside a commitment to freeze parental fees and sustainability of services.
