The early childhood care and education programme, ECCE, provides a free preschool year to all eligible children in the age range three years and two months to four years and seven months before they commence primary school. A standard capitation fee of €62.50 per week per eligible child is paid to participating child care services. A higher capitation fee of €73 per week is paid per eligible child to services with more highly qualified staff. In 2012 it was necessary to reduce the level of capitation provided under the ECCE programme in order to ensure that the Department's spending remained within the restricted limits set by Government following the severe downturn in the economy. The Government succeeded, despite the difficult budgetary situation, in maintaining the preschool year on a universal and free basis. Annual funding of more than €170 million continues to be provided and some 67,000 children benefit each year from the programme.
Restoring capitation payments to pre-2012 levels would cost in the region of €5 million annually. While we have made considerable progress in correcting the overall budgetary situation, the funding available to my Department does not allow me to increase capitation payments at present. I have indicated that if resources become available to my Department, I will consider the scope for increasing the level of payments. However, I want to consider the question of appropriate supports for child care in a wider context. It is crucial that we develop a coherent whole-of-government approach to investment in child care services. To ensure that all the benefits of our complete range of child care investments are fully realised, future public investment in child care must be evidence based and strategically co-ordinated. I have established an interdepartmental group to examine the provision right across the zero to six age group, as well as to consider the after-school needs of older school-going children. I have asked the group to report to me before the end of June.