Dáil Éireann Debate, Tuesday - 12 July 2022
659. Deputy Fergus O'Dowd asked the Minister for Children, Equality, Disability, Integration and Youth if a response will issue to the serious concerns that have been raised in relation to childcare policy (details supplied); and if he will make a statement on the matter. [37085/22]
Amharc ar fhreagraMy Department is aware of the concerns raised and is considering the issues raised in the correspondence and will issue a response in due course. I will also be requesting that my officials meet with the corresponding organisation to discuss the matters further.
The review which the correspondent references noted the considerable success of the NCS in reaching those most in need. As the correspondent notes the review also reflects certain concerns particularly that it may present challenges for some families and for some providers serving disadvantaged communities.
It is however quite incorrect to say that "in November 2019 the targeted funding for disadvantage was closed to children". The NCS is designed to be highly inclusive and to meet the needs of those families who need it the most. The NCS is based on the principle of progressive universalism and has regard to the best interests of children.
The subsidies on the older schemes were grounded in medical card and social protection entitlements. It is a central policy component of the NCS to poverty proof and assist people in exiting the poverty traps, some of which were associated with the older ELC/SAC schemes. Both the older schemes and the NCS contained universal and targeted elements. As a point of fact the proportion of families on the targeted schemes vs universal on NCS is more favourable than on the older schemes.
By making this fundamental shift away from the legacy schemes where subsidies are grounded in medical card and social protection entitlements, and by tangibly reducing the cost of quality childcare for thousands of families, the NCS aims to improve children’s outcomes, improve labour market participation and reduce child poverty. It is a central policy component of the NCS to poverty proof. It also designed to assist people in exiting the poverty trap, elements of which were inherent in the legacy schemes.
My Department continues to consult extensively with stakeholders on the development of NCS, through the Partnership for the Public Good report and the 12 month review of the NCS. The reviews noted the considerable success of the NCS in reaching those most in need. However, the report also highlights the same issues raised in the correspondence, particularly that it may present challenges for some families and for some providers serving disadvantaged communities. Findings which I have already begun to act on in Budget 2022, specifically:
- An extension to the NCS universal subsidy to all children under 15 from September 2022, benefitting up to 40,000 children.
- An end to the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours from spring 2022, benefitting an estimated 5,000 children from low income families.
Core Funding will contribute to services’ sustainability and will significantly increase income for the overwhelming majority of services and provide greater funding stability. A number of safeguards have been put in place to ensure no unintended outcomes of Core Funding including a funding guarantee and a Sustainability Fund which is open to services.
Core Funding will give providers a stable income source based on the nature of the service they deliver. A provider’s income will now consist of Core Funding, NCS and ECCE subsidies, and parental fees. Structuring Core Funding primarily based on capacity means that services will have an allocation each year that will not fluctuate in line with children’s attendance.
Once Core Funding is embedded and changes to existing programmes take effect (ECCE and NCS), my Department will progress the development of the Tackling Disadvantage funding and support. Informed by recommendations in Partnership for the Public Good, services will be provided with a proportionate mix of universal and targeted supports to support children and families accessing their services who are experiencing disadvantage.
This Government agreed on 31 May to the publication of the National Action Plan and for its submission to the EU Commission. The publication of the Plan is an important first step in the implementation of the EU Child Guarantee which clearly intersects with the Tackling Disadvantage response. Identifying the most appropriate and effective structures to pursue the reforms necessary to improve outcomes for our most disadvantaged children and young people will be a particular focus of our work in the coming months, in order to progress matters.
