Childcare Services

Dáil Éireann Debate, Thursday - 24 March 2022

Thursday, 24 March 2022

Ceisteanna (1)

Kathleen Funchion

Ceist:

1. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth if his attention has been drawn to the fact that more than a small number of childcare sessional and school-age childcare, SAC, services will be adversely affected by the newly announced core funding model; the guarantees he can give these services that they will not be worse off; if the staff working in these services can avail of the uplift; if not, the reason that they do not qualify; and if he will make a statement on the matter. [15445/22]

Freagraí ó Béal (6 píosaí cainte)

Deputy Pauline Tully

Good morning to the Minister. Is he aware that more than a small number of childcare sessional and SAC services will be adversely affected by the newly announced core funding model? Will he give a guarantee that they will not be worse off? Will he confirm that staff working in these services can avail of the uplift? If not, why do they not qualify?

Minister for Children, Equality, Disability, Integration and Youth (Deputy Roderic O'Gorman)

I thank the Deputy. A transformative package of measures for the early learning and care, ELC, and SAC sectors was announced in budget 2022, including €221 million in core funding. Core funding will operate from September in order to support improved quality, affordability and sustainability. The significant majority of ELC and SAC services will see substantial increases in income through core funding.

It is important to state that no service will lose out on core funding. All services will receive at least the same level of core funding as they received from higher capitation and programme support payments, PSPs, this year, assuming the number of children, graduate staff and type of service offered remain the same. For early childhood care and education, ECCE, sessional services operating with standard capitation, all full- and part-time services and all SAC services, there will be substantial increases in funding. There will also be increases in funding for the large majority of ECCE sessional services operating with higher capitation. Approximately 1% of services will see the same income from core funding as they received this year through higher capitation and PSPs combined but no service will be less well off under core funding than under the previous scheme.

Core funding is largely contingent on an employment regulation order, ERO, being agreed by the joint labour committee, JLC, for the sector. If agreed, an ERO will establish minimum rates of pay and conditions for all workers and it is a matter for the JLC to determine whether different rates should apply for different roles and qualification levels of staff. A JLC was established this year and has been meeting regularly in recent months.

Deputy Pauline Tully

I thank the Minister. We are acutely aware of issues in the childcare sectors in recent years, including the cost of childcare to parents and staff not being paid at levels appropriate to their qualifications. I acknowledge that many services will be better off and welcome the uplift to 49 weeks instead of 38 weeks for degree staff. I know it is rolled out as part of the budget and will come on stream later this year. However, a few services have been in touch with Deputy Funchion's office to say they will be worse off. They have gone on to the ready reckoner, which is the online tool for services, to gauge the potential funding value for an individual service and found they will be worse off. The Minister has given a guarantee that they will not be. If they find they do not qualify for the core funding, can they engage with the Department to ensure they get the same level of funding as last year? The sessional services are particularly fearful that they will be worse off.

Deputy Roderic O'Gorman

Owing to the manner in which the higher capitation payment was made in respect of graduates when it was based on the number of children participating in the ECCE programme rather than the number of hours of graduate-led provision, approximately 1% of sessional services got a disproportionate uplift under the older system. When they put their numbers into the ready reckoner, they came out as being down slightly. I can give a clear guarantee. We have conveyed this to the services but this is a valuable opportunity to state that no service will be less well off for core funding than under the previous arrangement.

In the coming days we will communicate with all services about the transition payment, which is the payment we will provide to them when the employment wage subsidy scheme, EWSS, ends but before core funding kicks in, hopefully in September. That transition payment will be made in June, July or August and we will issue information about it in the coming days.

Deputy Pauline Tully

The Minister mentioned an interim period and that the JLC is meeting regularly. I am concerned that funding is still reliant on the employment regulation order. Does the Minister have concerns about that? Is he confident that everything will work out as intended?

Deputy Roderic O'Gorman

We are bringing forward €221 million per year in funding. This is a significant State investment, as everyone recognises. The bulk of that money is linked to the delivery of the ERO. We all know how poorly childcare professionals are paid. I see, Government sees and it is seen across the House the ERO as the means to deliver that. That money has to be contingent on the ERO. If we do not get the ERO, we cannot get the guarantee that the extra money the State is providing to services will go to childcare providers, give them the uplift they need and deserve and keep them in the sector so they do not continue to leave as they are leaving at the moment. The Government sees the ERO as essential to the delivery of that objective and that is why it is so closely linked with the provision of the majority of the core funding package.