Dáil Éireann Debate, Monday - 11 September 2023
1449. Deputy Alan Dillon asked the Minister for Children, Equality, Disability, Integration and Youth if he will provide the rationale and background with his Departments €69 capitation per head per week under the core funding model for ECCE services and the failure to increase this amount in line with the cost of doing business, inflationary pressures, wages increases and holiday pay for providers; and if he will make a statement on the matter. [38614/23]
View answerMy Department funds private early learning and care service providers to provide the ECCE programme at a standard rate of €69 per week per child attending the ECCE programme. €4.50 of this fee goes directly to the provider and the remaining €64.50 reducing the fees paid by the parent/guardian.
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.
It is important to note that these estimates are based on a static system and do not account for any potential changes in behaviour that would result from these changes. It should also be noted that the above estimate is for increasing ECCE standard capitation only, ECCE higher capitation no longer exists and has been replaced by Core Funding. As higher capitation no longer exists it cannot be costed in the same way as ECCE capitation.
I would also note that I have appointed of Stranmillis University College, Belfast to undertake an independent review of the ECCE programme. 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 and experience to date. As part of the ECCE Review, there will be a wide stakeholder engagement which will include parents and pre-school providers. The review is due to conclude at the end of 2023.
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. There are supports, financial and otherwise, available to services who need them.
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.
My Department strongly encourages services which are experiencing financial difficulty, and would like support to contact their City/County Childcare Committee (CCC) to access case management supports. Services can be assisted on an individual basis through this route.
