Dáil Éireann Debate, Thursday - 7 July 2022
256. Deputy Robert Troy asked the Minister for Children, Equality, Disability, Integration and Youth if he will provide clarity and information on the provision of core funding to approved childcare and early learning facilities; and the criteria that a facility must adhere to in order to qualify for core funding. [36803/22]
Amharc ar fhreagraIn 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).
A central recommendation of the Expert Group report is that a new Core Funding stream should be introduced to start the partnership for the public good between the State and providers, for children, parents and families. The primary purpose of Core Funding is to improve pay and conditions in the sector as a whole and to improve affordability for parents, as well as ensuring a stable income to providers.
Extensive communications on Core Funding have issued to the sector, and public information is being maintained at: first5fundingmodel.gov.ie/core-funding/. This site includes the Core Funding Partner Service Funding Agreement and accompanying frequently asked questions (FAQ) note which were published on 28th June. The Funding Agreement sets out the full detail of how Core Funding will operate in its first year, the commitment to funding and the associated requirements of Partner Services.
Core Funding, with a full year value of €221 million, equivalent to an estimated increase of 19% in the cost base for the sector. The budget for the scheme makes provision for improvements in staff pay and conditions, for additional administrative staff/time, and a contribution to non-staff overhead costs. It is important to note that both contact and non-contact time, holiday pay, sick pay and other employer costs, are all factored in to the estimated staff costs allocation in Core Funding.
There is also provision as part of the budget to contribute to supporting graduate leadership in services. This will make funding for graduates available for the first time in respect of provision for 0-3 year olds as well as supporting the employment of graduate Managers in ELC or combined ELC and SAC services.
The allocation mechanism for distributing this funding is fair and proportionate and is related to the primary drivers of services' costs of delivery. Services opening for longer hours, offering more places and offering places for younger children will receive a higher value of Core Funding than other services. This is because their costs of operation are higher.
Core Funding rates are outlined in the Funding Agreement. I would encourage providers to read the Funding Agreement in full, but some of the key conditions from the Funding Agreement include:
- Participating in the Annual Sector Profile.
- Operating a fee management system, which requires no increase to fees in 2022/23 above September 2021 rates.
- Implementing practice frameworks.
- Developing, implementing and reporting on a quality action plan.
- Providing transparent and validated financial reports.
- Issuing a Parent Statement to all parents using the service outlining what they can expect.
- Offering the NCS and the ECCE programme to all eligible children.
The application process will open later this month. Applicants will define their service’s profile and their capacity in detail on an online system. On completion of the application, the service’s specific Core Funding value will be calculated and communicated to applicants, subject to final verifications and confirmations.
A Ready Reckoner is available to provide an indication of the potential funding allocation an eligible ELC/SAC service may be able to expect.
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 and I look forward to working with Partner Services under this new funding model.
