Dáil Éireann Debate, Thursday - 17 September 2020
144. Deputy Brendan Howlin asked the Minister for Children, Disability, Equality and Integration the estimated amount it would cost if ECCE capitation rates increased by 3% with effect from September 2021; and if he will make a statement on the matter. [24580/20]
Amharc ar fhreagraThe estimated cost of this measure for September 2021 to 31 December 2021 is €4.07m.
€297m euro has been allocated to the Early Childhood Care and Education programme in 2020.
The Early Childhood Care and Education programme runs for 38 weeks each programme year. The standard capitation rate paid to providers is €69 per child, per week, and the higher capitation rate paid is €80.25 per child, per week. The programme currently provides 15 hours of free early learning and care per week.
There are sixteen payable weeks in the period between September and December. The below table displays the projected financial impact of increasing the capitation rates from September 2021 as per the question; this includes the 16 week cost in 2021.
|
Change |
Cost (€m) in 2021 |
Increase (€m) |
|
No Change |
€297.00 |
|
|
3% capitation from Sep 2021to 31 December |
€300.74 |
€3.74 |
As AIM funding is intrinsically linked to ECCE capitation, an increase in capitation has an impact on AIM Level 7 costs. AIM Level 7 is awarded on a weekly basis (generally €195 per week). If a 3% increase in ECCE capitation was provided, there should be a corresponding 3% rise in AIM Level 7 costs.
Circa €26m has been allocated to the AIM Level 7 programme in 2020 based on current applications and registrations. The additional cost of AIM Level 7 is set out below.
Associated AIM costs
|
Change |
Cost (€m) in 2021 |
Increase (€m) |
|
No Change |
€26.00 |
|
|
3% capitation from Sep 2021 to 31 December 2021 |
€26.33 |
€0.33 |
These workings capture the impacts the increase would have from September to December based on current 2020 allocation, as 2021 allocation have yet to be finalised.
