Dáil Éireann Debate, Monday - 11 September 2023
1488. Deputy Brendan Smith asked the Minister for Children, Equality, Disability, Integration and Youth if he will give urgent consideration to the issues raised by a national organisation (details supplied); if he will ensure that extra supports are provided for this sector at an early date; and if he will make a statement on the matter. [39158/23]
View answer€100 ECCE capitation
My 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 reduces 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 preschool providers. The review is due to conclude at the end of 2023.
Fee freeze lifted to support ERO
I acknowledge that many early learning and childcare services report staffing difficulties in relation to recruitment and retention. In general, staffing pressures in the sector are caused not by insufficient supply of qualified personnel, but by high levels of staff turnover.
However, 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.
Recruitment and retention difficulties are undoubtedly linked to pay and conditions.??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– which has an allocation of €259 million in its first year – to support amongst other things, improvements in staff wages, alongside a commitment to freeze parental fees and sustainability of services. As announced in Budget 2023, the Core Funding allocation will increase by €28 million for the second year and it is my Department's understanding that the JLC is continuing to meet to discuss possible changes to the EROs.?
I am committed to addressing other challenges which may impact on the recruitment and retention of staff in the sector.
In line with commitments in First 5, in December 2021, I launched Nurturing Skills: The Workforce Plan for ELC and SAC, 2022-2028. Nurturing Skills aims to strengthen the ongoing process of professionalisation for those working in ELC and SAC.
Under Pillar 4 of Nurturing Skills, an action is included to examine the development of a range of entry routes into the sector, including apprenticeships or other work-based learning, and access programmes in further education and higher education. This action is included for delivery in the 2022-2024 implementation plan.
Core Funding, worth €259 million in Year 1 and €287 million in Year 2, an 11% increase, intentionally introduces Fee Management in a sustainable and considered manner, allowing for substantial increases in the total cost base for the sector without additional costs being passed on to parents.
Fee management in Year 1 and Year 2 is effectively a fee freeze, where providers cannot increase the fees charged from September 2021. An increased charge of any kind for an existing and unchanged Service Type will be in breach of Core Funding rules. Partner Services must uphold their contractual obligations regarding their fees charged to parents/guardians as laid out in the Core Funding Partner Service Funding Agreement.
The approach to introducing Fee Management under Core Funding is guided by the recommendations of the Expert Group outlined in Partnership for the Public Good, and approved by Government. It ensures that the introduction of Fee Management to the sector is done in a sustainable and considered manner.
My Department used the most recent data available to allocate Core Funding for Year 2, with data emerging from current operations of services from March 2023 underpinning the recently announced allocation model, as well as the most up-to-date macroeconomic projections. It was also informed by ongoing engagement with provider representatives and providers of all types, via various specific consultation activities and through various fora, including through the Early Learning and Childcare Stakeholder Forum.
More data will be available to my Department through the validated financial returns, which will be gathered in Q4 2023, and will allow further analysis of provider income and costs. This financial return data may underpin developments in Fee Management for Year 3.
Approximately €4m of this new funding will be used to remove the experience requirement on both Graduate Premiums under Core Funding, underpinned by new EROs. This move was widely welcomed in the sector.
The remaining €24m will be used for further developments and enhancements to the scheme. €6.11m in funding has been allocated for non-staff overheads, a significant increase on the current allocation of €23m. This will facilitate the continuation of the fee freeze into the second year of the scheme, ensuring that any potential increases in non-staff costs are not passed on to parents whilst supporting services sustainability.
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.
Apprenticeship model introduced immediately to mitigate staff crisis
The intention this year is beginning research on alternative entry routes, including apprenticeships, with a view to using that research to inform next steps.
While Nurturing Skills commits to examine alternative entry-routes into the sector, the development of an apprenticeship would rely on the formulation of proposals by employers and education institutions, and approval by the National Apprenticeship Office. The consideration and potential introduction of a new apprenticeship model for early-years educators is therefore not solely a policy matter for this Department.
During the public consultation that took place in the development of Nurturing Skills, there were mixed views amongst stakeholders on the benefits of an apprenticeship model to support recruitment in the sector – some were in favour while some were opposed.
A particular challenge in designing an apprenticeship model suitable for the ELC sector is that apprentices are employees of providers, and all employees of ELC providers must meet a minimum qualification requirement (level 5) before they commence work with children and count in adult-child ratios.
While an apprenticeship specifically to support existing educators to upskill to Level 7/8 degrees is an option, Nurturing Skills also commits to offer funded places on flexible education programmes at levels 6 to 8 to current Early Years Educators to support upskilling and strengthen career development pathways.
Nurturing Skills also includes specific actions for moving to a graduate-led ELC workforce by 2028, establishing a career framework for staff working in the ELC and SAC sector, including role profiles and qualification requirements, and the strengthening of career pathways. Nurturing Skills also includes actions to support the recruitment and retention of staff with the necessary qualifications, and ongoing staff training and development, to create a workforce which feels valued and is motivated to deliver the best possible service to children.??
Extension of AIM allocation to full day care hours
One of the commitments within First 5, a Government Strategy for Babies and Children, was to undertake an end-of-year-three evaluation of AIM. That evaluation has now been completed, with the final report due to be published later this year. Subject to evaluation findings and budgetary considerations, Department officials are considering enhancements to, and/or expansion of AIM to full day care hours. This could include beyond the Early Childhood Care and Education programme hours of operation.
Optional extras to be reinstated
The Early Childhood Care and Education Programme (ECCE) is a free universal two-year preschool programme available to all children within the eligible age range.
As ECCE is a subsidised educational programme it must be offered free of charge, however, approved ECCE providers may charge for a limited number of optional extras which are outlined in the ECCE rules. Where a parent/guardian does not choose any of the optional extras, their child must be provided with the full ECCE Programme based service provision. An approved provider must give an accurate description on their fees table of the total cost and frequency with which an optional extra may occur.
