Dáil Éireann Debate, Thursday - 30 July 2020
994. Deputy Richard Bruton asked the Minister for Children and Youth Affairs his plans to set a cap on parental fees irrespective of income and publish a policy, legal and economic analysis in 2020 as set out in the Programme for Government; if terms of reference and tenders for this report have been initiated; and if he will make a statement on the matter. [19747/20]
Amharc ar fhreagraState investment in Early Learning and Care (ELC) and School-Age Childcare (SAC) has increased by an unprecedented 141% over the past 5 budgets (from €260m to €638m). This has enabled, for example, a doubling of the ECCE programme to two years, a doubling of the number of children availing of State subsidies, a 60% increase in ELC and SAC places, greater access to ELC and SAC for children with additional needs and the development of the new National Childcare Scheme.
The new Programme for Government acknowledges that much more needs to be done to tackle the challenges of accessibility, affordability and quality of ELC and SAC and more investment is needed.
First 5, the whole-of-Government strategy for babies, young children and their families pledges to at least double State investment in ELC and SAC by 2028. A key vehicle to ensure that such significant additional investment delivers for children, families and the State will be a new funding model .
An Expert Group to develop the new funding model has been convened. This Group is composed of renowned academics, top level economists and experienced policy makers from Ireland and elsewhere – all of whom have an enormous breadth of knowledge and experience. The Expert Group’s Terms of Reference are as follows:
- Agree a set of guiding principles to underpin the new Funding Model for Early Learning and Care and School Age
- Review the existing approach to funding Early Learning and Care and School Age Childcare services by the Department of Children and Youth Affairs in terms of its alignment with the guiding principles as well as effectiveness in delivering on the policy objectives of quality, affordability, accessibility and contributing to addressing disadvantage
- Drawing on international evidence, identify and consider options on how additional funding for Early Learning and Care and School Age Childcare could be structured to deliver on the guiding principles and above policy objectives
- Agree a final report including a proposed design for a new Funding Model, with accompanying costings, risk analysis and mitigation and phased implementation plan (with funding likely to become available on an incremental basis) to recommend to the Minister for Children and Youth Affairs and ultimately Government.
An essential and top priority for this Group will be to make recommendations for a mechanism to control fee rates for different types of provision for ELC and SAC.
The Expert Group is supported by a Research Partner, Frontier Economics, which has been contracted to develop a suite of working papers to inform the work of the Group. Already, five working papers have been drafted, including a working paper on mechanisms to control fees charged to parents. It is envisaged that this working paper will be published later this year.
The Expert Group is committed to engaging with key stakeholders, including children, families, providers and the workforce, in developing this funding model. Owing to COVID-19, a series of regional consultation events due to take place in March had to be cancelled. However, over the coming weeks and months, the Group will be inviting interested parties to make written submissions. In addition, key stakeholders, including parents, will be invited to participate in an online conversation on future funding.
Over recent months my Department has provided a number of support schemes for ELC and SAC providers during the COVID-19 crisis. Included in these schemes are conditions which improve affordability for parents. The Temporary Wage Subsidy Childcare Scheme, which operated while services were closed on public health grounds, included a condition that parents were not charged fees for the closure period.
My Department’s Reopening Support Payment, to support services reopening between June and early September, included a commitment not to increase fees charged to parents from pre-COVID-19 levels. This applies for the duration of the reopening period (29 June to 23 August 2020). This condition is to ensure that fees for parents are not raised during this period, and to ensure that the Department’s aims of affordable ELC and SAC continue to be met.
Finally, the recently announced funding package for the sector from 24 August to the end of the year commits to a substantial investment of just under €300 million, mainly through the Revenue operated Employment Wage Subsidy Scheme and full resumption of DCYA ELC and SAC programmes. These DCYA programmes reduce fees by providing State subsidies which must be passed on to parents. I hope that this package will mean that services will not increase parental fees given that, on average, 38% of their costs are now being met through the EWSS alone.
