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Childcare Services

Dáil Éireann Debate, Thursday - 22 April 2021

Thursday, 22 April 2021

Ceisteanna (108)

Jennifer Whitmore

Ceist:

108. Deputy Jennifer Whitmore asked the Minister for Children, Equality, Disability, Integration and Youth the actions being taken to address the high costs of rent for small childcare providers particularly during Covid-19; and if he will make a statement on the matter. [20914/21]

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Freagraí scríofa

Early Learning and Care (ELC) and School-Age Childcare (SAC) providers have a range of different arrangements for their premises.  In 2019, 48% providers owned their premises, 38% leased their premises, 8% had no formal agreement and 6% had a licensing agreement.

Robust costs data was captured through the Independent Review of the Cost of Providing Quality ELC and SAC Services in Ireland. Data from this review shows that, on average, premises account for 8% of providers' costs although this will clearly vary considerably depending on individual circumstances. In addition, payroll and other staff costs accounts for approximately 70% of providers' costs and commerical rates accounted for 1% of costs, on average.

The Department of Children, Equality, Disability, Integration and Youth provides funding to ELC and SAC providers through a number of strands including the Early Childhood Care and Education programme, the National Childcare Scheme, the Programme Support Payment, the Access and Inclusion Model and other funding schemes.  Providers also have income from parental fees. 

Given that ELC and SAC providers, whether for-profit or not-for-profit, are private operators and make individual decisions about how to run their services, how best to balance of income from different sources, and managing costs are very varied.

Throughout the Covid-19 crisis, significant additional State funding has been directed towards providers in the ELC and SAC sector.  Since summer 2020, the Employment Wage Subsidy Scheme (EWSS) has been available to employers in the sector with an exemption from having to demonstrate a 30% drop in income which applies to other sectors. EWSS has been paid at enhanced rates since October 2020. Enhanced rate EWSS is estimated to cover on average 80% of payroll costs or 50% of running costs for services. Other supports provided to the sector from my Department since the onset of Covid-19 includes the Temporary Wage Subsidy Childcare Scheme, a Reopening Support Payment and a Covid-19 Capital Support Grant. In addition, there have been a range of whole-of-economy supports for eligible providers, including the Temporary Wage Subsidy Scheme, the Restart Grant and the commerical rates waiver.

The Covid-19 policy response was significantly informed by the data collected through the independent review of costs. My Department plans to continue capturing costs data in order to maintain an up-to-date dataset.  My Department is also leading a review of the funding model for ELC and SAC.  An Expert Group is considering a range of evidence and is due to report by the end of the year.

Where services are experiencing financial difficulty related to the Covid-19 crisis or otherwise, sustainability funding is also available.  Providers are advised to contact their local city or county childcare committee for further information and support.

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