Dáil Éireann Debate, Wednesday - 6 April 2022
146. Deputy Neale Richmond asked the Minister for Children, Equality, Disability, Integration and Youth if he has been in contact with small childcare providers to discuss concerns with the new core funding model for childcare; and if he will make a statement on the matter. [18510/22]
Amharc ar fhreagraCore Funding is a new funding stream for Early Learning and Care (ELC) and School Age Childcare (SAC) services introduced in Budget 2022 and informed by the work of the Expert Group to develop a new funding model for ELC and SAC, outlined in Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare.
Core Funding is a payment to providers designed to support quality, sustainability, and enhanced public management, with associated conditions in relation to fee control and cost transparency, incorporating funding for administration and to support the employment of graduate staff. Core Funding aims to offer better financial sustainability to providers in return for a cultural shift to a partnership relationship between providers and the State that reflects the public good dimension of ELC and SAC.
On 7th March I announced the rates and values for the Core Funding, and launched the online Ready Reckoner tool. The Ready Reckoner is accessible to all and is designed to give an idea of what services can expect to receive based on their characteristics. It also allows different scenarios of provision to be tested. This will show the benefits of applying for Core Funding when it is possible to do so.
The majority of Core Funding (i.e. €183 million of the €221 million) will be distributed based on a service's capacity - opening hours, opening weeks and the age group of children for whom services are provided as well as the number of places available. This €183 million includes allocations for improvements in staff pay and conditions (€138 million), for administrative staff/time (€25 million), and a contribution to non-staff overhead costs (€20 million).
The rationale for this approach to distributing the funding is that these are the primary characteristics that determine the service's costs of delivery. Structuring Core Funding primarily based on capacity will support sustainability and stability for services, since they will have an allocation each year that will not fluctuate in line with children's attendance.
€38 million is allocated to contribute to support graduates to be Lead Educators across ELC and to support graduates as Managers in ELC or combined ELC and SAC services. Heretofore funding has only been available in respect of graduate Room Leaders in the Early Childhood Care and Education (ECCE) programme.
Sessional services with standard capitation, Full Time, Part Time and School Age services will all see substantial increases in funding. Most ECCE services currently in receipt of higher capitation rates will also benefit significantly.
No service will lose out. I have issued a funding guarantee to ensure that no service will receive less in Core Funding that it previously received in higher capitation and programme support payments, if their circumstances remain the same. An estimated 1% of services will be caught by the funding guarantee. All other services will see increases in funding, and most substantial increases in funding.
The 1% of services for whom the funding guarantee will apply and those who will see just small increases from Core Funding are ECCE-only services in receipt of higher capitation for large groups of children and with high occupancy levels. Such services are currently in receipt of between €110-€120 per hour of service provided, which is the highest levels of public funding relative to the staffing levels required for operating those types of services and significantly in excess of average staffing costs required for this type of service.
I would also like to note that there is a sustainability fund in place where services are experiencing sustainability issues that can be availed of by services.
My officials have engaged extensively with provider representatives and providers of all types and continue to do so, via various fora.
Core Funding is designed to facilitate a partnership between the State and early learning and childcare services for the public good. Its primary purpose is to improve pay and conditions in the sector as a whole and to improve affordability for parents, as well as ensuring a fair income to providers. I look forward to working together in partnership with the many providers who which to deliver services for the public good.
