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Childcare Services

Dáil Éireann Debate, Thursday - 2 June 2022

Thursday, 2 June 2022

Ceisteanna (68)

Neale Richmond

Ceist:

68. Deputy Neale Richmond asked the Minister for Children, Equality, Disability, Integration and Youth if he has engaged with childcare providers to discuss their concerns regarding the core funding model; and if he will make a statement on the matter. [27629/22]

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Freagraí scríofa

In December 2021, Government adopted the 25 recommendations contained in an Expert Group report, Partnership for the Public Good: A New Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC).

The new funding model will support the delivery of ELC and SAC for the public good, for quality and affordability for children, parents and families. To achieve this, there is a need for greater State investment and greater public management of provision.

Core Funding is the new funding stream to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.

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.   

My officials have engaged extensively with provider representatives and providers of all types and continue to do so, via various fora.

For example, on 12th April, senior officials in my Department met with a group of provider representatives to discuss issues regarding Core Funding. 

In addition, on 4th May I, along with officials, met with a delegation from 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. My officials have examined these materials and issued a comprehensive response to the FECP and are awaiting further information by means of follow up. 

While I accept that Core Funding is a new way of providing funding for the sector, and there is a lot of detailed material to be absorbed, I do not believe that there is a solid foundation in evidence for the concerns expressed by some that Core Funding will compromise services' viability.

In examining all of the data available to the Department, including that provided by the FECP following our meeting on 4th May, 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 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.  

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. For any service that does experience 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 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.

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.

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