Dáil Éireann Debate, Tuesday - 24 May 2022
506. Deputy Michael Lowry asked the Minister for Children, Equality, Disability, Integration and Youth his views on concerns raised by an organisation (details supplied) concerning childcare core funding fee and education requirements; if he has received correspondence from the organisation; if so, if he has responded to same; and if he will make a statement on the matter. [26485/22]
Amharc ar fhreagraOn 4th May I met with a delegation for the Federation of Early Childhood Providers (FECP) to discuss their position in relation to the new Core Funding stream following a survey of their members. The FECP shared extremely detailed materials at this meeting, including case studies and extensive data on provider costs. This was followed a number of days later with the letter attached to the email received by the Deputy.
There is a great level of detail contained within the various materials provided. My officials have examined these materials in order to issue a comprehensive response to the FECP. A reply has now issued to the FECP.
The response to the FECP seeks further clarification on the data provided and address a number of the issues raised but I think it is important to be clear that the Department will not be accepting the proposals made by this sector representative group to extend the scope for additional optional extras or voluntary contributions to be charged to parents whose children are participating in the ECCE programme. It is my view that this risks parents incurring additional charges for a universal service which is designed and intended to be free at the point of use and available to all families, regardless of ability to pay. That would be entirely contrary to the spirit of the programme.
In examining all of the data available to the Department, including that provided by the FECP, there is no evidence about a significant lack of sustainability for ECCE-only services or to suggest that services will face closure as a result of Core Funding. The vast majority of services will see an increase in funding, and around 1% of service will see no change. No service will see a decrease in funding.
The sectoral information on income and costs does not show signs of financial unviability for ECCE-only services. In fact, the evidence suggests that ECCE-only services see the highest levels of income in excess of costs compared to other types of provision.
I am committed to ensuring more stability of income for services, and that is one of the key objectives of Core Funding.
For any service that is experiencing financial difficulties, a Sustainability Fund will be in place. This new strand of the Sustainability Fund, linked to Core Funding, will be designed to provide an extra safety net for providers. This will be open to both private and community providers.
The Government is committed to increasing investment in early learning and care and school-age childcare. As part of this, the new Core Funding package amounts to €221 million in full year costs (€173 million of which is new investment).
Every year a number of services close and others open. Current data on service closures and openings are not markedly different to the trend in previous years. This data also shows that services close for a wide range of reasons including retirement of owners or other personal circumstances and only a small minority relate to sustainability issues.
The €221 million Core Funding budget is distributed to services in a fair and proportionate manner, based primarily on the features that determine services’ operating costs.
Importantly, Core Funding and this significant increase in investment is the vehicle through which the Government will deliver improved pay and conditions for staff through supporting the drawing up of Employment Regulation Order for different roles of the sector by the Joint Labour Committee and through introduction new mechanisms to control parental fees.
It may be of interest to the Deputy to know that there is significant material relating to Core Funding available at www.first5fundingmodel.gov.ie/Core-Funding/. This public material was prepared in response to a number of queries received by my Department, including some of which are raised by the FECP.
The new funding model being implemented aims to transform the sector to one that is increasingly publicly funded and publicly managed, delivering a service for the public good, through a partnership between the State and providers, to the benefit of children, parents, educators and practitioners, and society overall.
This transformation starts with Core Funding and the new approach will entail a shift in the relationship between the State and providers in relation to delivering ELC and SAC, with new responsibilities on both sides. Core Funding is open to all registered providers subject to their agreement to the terms and conditions of the funding.
It is my ambition that the maximum number providers choose to participate in this partnership to deliver ELC and SAC for the public good and come into contract for Core Funding. Core Funding however is optional for providers.
I look forward to working together in partnership with providers to deliver ELC and SAC services for the public good.
