Childcare Services

Dáil Éireann Debate, Thursday - 29 February 2024

Thursday, 29 February 2024

Questions (82)

Kathleen Funchion

Question:

82. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth if he will provide further details on the €18 million capital funding announced recently with the precondition that providers agree to a predefined fee cap; what supports will be available for services to encourage them to apply, given the high number of services that applied and were not successful in 2023; and if he will make a statement on the matter. [9497/24]

Oral answers (6 contributions)

Deputy Kathleen Funchion

This question relates to the recently announced capital funding of €18 million. I know it has a precondition that providers agree to a predefined fee cap. Can we get some more information on that and how it will pan out? Given the high number of services that applied last year and were not successful, can we get some more information and clarity?

Deputy Roderic O'Gorman

Last week, I was pleased to announce an €18 million capital grant scheme for the early learning and childcare sector. The building blocks capacity expansion grant scheme is part of the wider building blocks capital programme for this sector under the national development plan. The scheme will provide capital grants for early learning and childcare services to expand their existing capacity by means of internal renovations and reconfigurations. The primary focus of the scheme is to increase capacity in the between one and three year old, pre-ECCE, age range for full day or part-time care. A key feature of the scheme is the application of a maximum fee threshold for early learning and childcare services that wish to apply for funding. The reason behind this is to ensure that when State capital investment is provided it does not result in the delivery of childcare places that are unaffordable to parents. My Department has set a weekly maximum fee for full day and part-time services. If the service currently charges above these rates it is ineligible for capital funding. Applicants are required to confirm that the fees they charge for places on 3 April 2024 do not exceed the maximum fee threshold for the relevant care type. The maximum fee threshold for full-time care has been set at €295 per week, while the maximum fee threshold for part-time care has been set at €190 per week. Training has been made available for providers to assist them in understanding the scheme. Pobal's early years provider centre is available to respond to queries about the application process and the city and county childcare committees have been trained in the scheme and can provide additional support and advice to any provider considering applying. The closing date for applications for the new capital funds is 3 April. I have no doubt but that all Deputies have services in their areas that will be interested in this new funding.

Deputy Kathleen Funchion

There was a lot of information in that. I welcome that it specifically relates to expanding baby room capacity for those between six months and three years. That continues to be a major issue in trying to access spaces. Has any analysis been done of what the €18 million might translate into in terms of places? That might not have been done. I understand the rationale behind the fee caps. Is that the same as core funding? If a service in core funding decides to expand and add a baby room or additional baby room, is it already in a fee cap with core funding? Is it the same type of system, and can we get some information on that?

Deputy Roderic O'Gorman

It is slightly separate to core funding. When you apply you have to state if your weekly fee for full time or part time are above the figures I cited. If they are, you are ineligible to apply. We estimate that approximately 3% of services have weekly fees above those numbers. It is a small number. It is a balance. We want to increase capacity. However, if we are increasing capacity in services to rates we generally believe are unaffordable that is probably not the best investment of State money. The capital programme is available to both community and private services. Community services can apply for the full cost up to €100,000. For private services it is matched funding. They can apply for up to €50,000 and seek the extra €50,000 as matched funding. It is again important to provide additional supports to those community services, which are often in areas of higher disadvantage. At the same time, we recognise that significant investment can be a struggle for private services too, and we look to go 50:50 with them to provide that.

Deputy Kathleen Funchion

I will make two more points. I recently got a reply to a parliamentary question on what funding was available for construction of new purpose-built early learning and childcare facilities. It stated there was no funding. Maybe this is not considered new funding because it is for existing services. Will the Minister clarify that? There are general works like, for example, retrofitting, which we are encouraging all places to do, or upgrades and other basic things. These are obviously separate to the building blocks funding people can apply for on upgrade works. Is that correct? I want to get clarity on those two points.

Deputy Roderic O'Gorman

The building blocks programme was in three parts. Last year, in the first part, the grants available were for those upgrades. We had €9 million available for those upgrades. This year, our focus is on the expansion of existing services, so the grants available this year are to expand existing services. We have €18 million for that. In 2025, the grants available will be for new services. I do not have the final line of sight on that, but I think that will be in excess of €20 million. We are looking at it in steps. The first step was upgrade, the second step was expansion and the third step is funding for brand new services. That is the biggest piece in supporting new services, in particular community services. We are doing a bit of work in identifying areas of greatest need because there will be criteria for new services in looking to support areas where there is significant pressure on existing services.