Tusla is the independent statutory regulator for early years services, including Early Learning and Childcare (ELC) and School Age Childcare (SAC) services and is responsible for maintaining the register of services under the Child Care Act 1991. Where an ELC or SAC service ceases operations, the registered provider is required by law to advise Tusla of this and the service will then be removed from the public register. Tusla provides my Department with the verified closure figures a month in arrears, to allow time for verification, and so the most recent available closure figures are for end December 2023.
The latest data on new service registrations and service closures provided by Tusla covering the period up to the end of December 2023 shows:
a net increase of 129 in the overall number of ELC and standalone SAC services in 2023;
a five-year low in the number of net ELC (i.e. early learning and care, or pre-school) services closures, (i.e. 29 net closures total in 2023 compared to 58 net closures in 2022, 76 net closures in 2021, 106 net closures in 2020 and 103 net closures in 2019; and
a net increase of 158 standalone SAC services (after-school childcare) in 2023.
It should be noted that net closures of services do not necessarily imply a reduction in capacity in the sector.
As Tusla do not supply my Department with a breakdown of closures by county, I have referred the request for such a breakdown to Tusla requesting the Agency provide the Deputy with a direct response.
Using Core Funding application data, Pobal were able to derive the total number of rooms that contained a capacity within 0-1 age group (baby rooms) from where a closed service or the room was removed from a services profile during an application change process. However, this analysis is limited to services contracted to Core Funding; Core Funding only began in September 2022; and Core Funding data is collected across programme years from September to August.
A total of two services providing care for children aged 0-1 closed during the 2022/23 programme year, in Kerry and Wicklow. As of 29 January 2024, no services providing care for children 0-1 have closed in the 2023/2024 programme year.
The Department already has a range of supports in place to avert closures, or assess closures of services.
Through Case Management, City/County Childcare Committees and Pobal work together to assess and provide support to services experiencing difficulties. This support focuses on operational as well as financial supports to assist services to manage their immediate difficulties and transition to a more sustainable model of delivery.
Where services close, City/County Childcare Committees have successfully supported the reopening of closed services, a recent example being the Before 5 Family Centre in Cork. In the event of closures, City/County Childcare Committees also assist parents with sourcing alternative early learning and childcare places where possible.
Ensuring high-quality early learning and childcare is affordable and accessible to all children and, in particular, children from vulnerable backgrounds, is a key priority for Government. Recent data shows that, on the whole, the supply of ELC and SAC places is broadly meeting demand. There are pockets of undersupply in certain areas and for certain cohorts, including places for babies and toddlers as well as full time places.
My Department is progressing a range of actions to ensure the supply of ELC and SAC meets demand.
Core Funding - the funding scheme introduced in 2022 - allocates funding for providers based on the cost of delivery. Under Core Funding, providers delivering ELC for babies and toddlers attract higher levels of funding, given the higher staffing requirements determined by the regulatory ratios for these children. Though only in operation since September 2022, initial analysis shows that this new funding scheme has given rise to a growth in capacity for these young cohorts. Budget 2023 allocated funding to secure a 3% growth in capacity for year 2 of the scheme, which has already materialised. Budget 2024 also secured funding to invest in a further 3% capacity growth from September 2024.
A new Supply Management Unit has been established within my Department to lead on this important work. The development of this function is akin to the Department of Education’s Forward Planning Unit. The Supply Management Unit will oversee the allocation of new capital investment. €69 million was allocated to my Department over the period 2023-2025 under the NDP to enable capital investment in the sector.
The Building Blocks - Capacity Grant, which I announced in December of last year, will fund the expansion of existing provision and invest in the development of new provision. My Department is currently undertaking a detailed needs analysis of supply and demand across the sector. This analysis will enable the funding to be targeted to where it is most needed.
