Dáil Éireann Debate, Thursday - 7 April 2022
337. Deputy Catherine Murphy asked the Minister for Children, Equality, Disability, Integration and Youth his plans to amend the core funding model for the early education sector in view of the fact that the smaller service providers business model is not viable with the plan in its current form.; and if he will make a statement on the matter. [19053/22]
Amharc ar fhreagraCore Funding is a new strand of funding to ELC and SAC services which will form part of the new funding model as recommended by an Expert Group in December. It will operate alongside the National Childcare Scheme (NCS) and Early Childhood Care and Education (ECCE) programme and in addition to the income that services receive from parents' fees.
Core Funding is designed to meet the combined objectives of:
- Improved affordability for parents by ensuring that fees do not increase;
- Improved quality through better pay and conditions for the workforce by supporting agreement on an Employment Regulation Order through the Joint Labour Committee;
- Supporting the employment of graduate staff; and
- Improved sustainability and stability for services.
Core Funding is a new and different way of providing substantial additional funding to the sector.
Extensive information was communicated to the sector on 7th March, including detail on the way in which Core Funding will be allocated to individual services. A Ready Reckoner calculator has also been launched to assist providers in estimating the impact of Core Funding for their individual service.
Core Funding will address some of the existing disparities in funding levels across ECCE and non-ECCE provision, providing funding proportionate to the age ratio of children being cared for and supporting the employment of graduate Lead Educators across ELC provision. While Core Funding will operate in addition to and alongside ECCE (standard capitation), AIM, CCSP and NCS, it replaces ECCE higher capitation and incorporates funding previously allocated to the discretionary Programme Support Payments (PSP) from September 2022.
Core Funding is related to the costs of delivery. It is based on operating hours, number of places offered by services and the age group of children for whom the places are offered, given the staffing requirements determined by the regulatory ratios for different care categories.
Services opening longer hours or offering more places will receive a higher value of Core Funding than other services. This is because their costs of operation are higher.
ECCE is 15 hours per week over 38 weeks of the year this amounts to 570 hours per year and is equivalent to 23% of the annual hours of a full day service operating from 8am to 6pm for 50 weeks of the year. ECCE ratio requirements are 11 children to one adult. Services offering places for 2-3 year olds can have a maximum of 6 children to one adult. ECCE therefore has less than half the hourly staffing requirement of a service for 2-3 year olds. Due to the nature of ECCE provision – 15 hours per week for 38 weeks per year – even a small Core Funding allocation can take account of increased delivery costs including staffing costs.
In fact, the value of funding offered is weighted in favour of sessional services for 2.5-6 year-olds. ECCE services receive proportionately more than other types of services relative to the staffing requirements of sessional pre-school provision.
Core Funding is equivalent to an increase of at least 9.5% on the standard capitation for ECCE. At a minimum, for every ECCE child €78.75 per week is now available (compared to €71.90 previously from ECCE standard capitation and programme support payment combined).
Because Core Funding is paid in respect of places rather than children, effectively this often means a greater ‘per child’ marginal increase if the service has unfilled capacity. With average ECCE occupancy of 9 children, Core Funding is equivalent to weekly per child capitation of €80.92.
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.
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.
