Dáil Éireann Debate, Thursday - 8 September 2022
1204. Deputy Bríd Smith asked the Minister for Children, Equality, Disability, Integration and Youth the length of time that the current proposed core funding model for early childhood care and education will run; the length of time that the current freeze in fees will last; and if he will make a statement on the matter. [42041/22]
Amharc ar fhreagraAffordable, accessible, high-quality and sustainable early learning and childcare is a key priority for Government. 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). This new funding model will support 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 worth €221 million in full year costs 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 and accessibility for parents as well as ensuring a stable income to providers. Core Funding allows for an estimated 19% increase in the total cost base for the sector without costs being passed on to parents.
In line with Employment Regulation Orders (EROs) coming into effect for the sector, the programme year for Core Funding 2022/23 starts on 15th September 2022 and ends on 31st August 2023.
A central condition of Core Funding will be that providers agree not to increase fees above those which were charged last year. This will give parents greater certainty about what they will be charged and ensure that increases to NCS subsidies are not absorbed by fee increases.
Partner Services agree that the fees charged to parents/guardians (before the application of subsidies) for the duration of this Funding Agreement (until August 31st 2023) will not exceed the fees charged to parents/guardians for the same services on September 30th 2021 in accordance with the Fee Policy applicable on that date.
In line with the approach to other major funding streams, Core Funding will be operated on an annual basis (September-August) with contract terms reviewed yearly.
