Dáil Éireann Debate, Tuesday - 7 November 2023
1079. Deputy Jennifer Murnane O'Connor asked the Minister for Children, Equality, Disability, Integration and Youth further to Parliamentary Question No. 80 of 2 July 2023, if he will clarify his reference to the possible introduction of a new fee structure; when he expects this new fee structure to be introduced; and if he will make a statement on the matter. [48627/23]
View answerThe 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.
Specific recommendations on fee management include; the introduction of a fee freeze in the first instance, improvements to price comparability, and developments to the fee management system further to the assessment of cost data.
Fee management started with a requirement of providers not to increase fees on September 2021 levels. The approach for fee management in future years will be guided by the Expert Group recommendations and may include the introduction of a common national provider fee structure and rates, and transitional arrangements such as where all fee rates would have to fall within a specified percentage tolerance range around a given rate.
My Department has secured an allocation of €303.31m for Core Funding in budget 2024. This is an increase on the 2023 allocation of €266m. The additional allocation allows for the continued implementation of the Core Funding scheme for Early Learning and Childcare and School-Age Childcare Partner Services for the second programme year, September 2023 to August 2024 and to the end of December 2024 which is into the third programme year.?
The additional funding from September 2024 translates into a full year allocation of €331m for year 3 of Core Funding, an increase of €44m, or 15%, on the current allocation of €287m and will deliver a range of enhancements in Year 3 of the scheme to support improved affordability and accessibility for families, improved pay and conditions for the workforce and improved sustainability for providers.
My Department has allocated a further €21.49m towards Core Funding from September 2024. The precise allocation of this funding will be determined by data emerging from Year 2 of the scheme as well as the financial returns.
