Seán Sherlock
Ceist:1237. Deputy Sean Sherlock asked the Minister for Children, Equality, Disability, Integration and Youth if he will respond to correspondence (details supplied) regarding core funding. [43134/22]
Amharc ar fhreagraThursday, 8 September 2022
Ceisteanna (1237)
Freagraí scríofa
Affordable, 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 and their families. To achieve this, there is a need for greater State investment and greater public management of provision.
Core Funding, which begins in September, 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.
Core Funding will address some of the existing disparities in funding levels across ECCE and non-ECCE provision, providing funding proportionate to the age ratio of children being cared for and supporting the employment of graduate Lead Educators across ELC provision. Core Funding will operate in addition to and alongside ECCE (standard capitation), AIM, CCSP and NCS, but replaces ECCE higher capitation and incorporates funding previously allocated to the discretionary Programme Support Payments (PSP) from September 2022.
Services currently in receipt of ECCE standard capitation will see capitation increase at least 9.5%. A majority of services currently in receipt of ECCE higher capitation will also see a moderate capitation increase. Just a small percentage of services will see no increase. These are larger ECCE-only services – with 20+ children in a session. ECCE sessional services with 22 children currently receives income of €1,829.30 per week. This will be matched in Core Funding.
Analysis of ECCE services’ income against staff costs as determined by the ERO rates shows that these rates are affordable for services that choose not to avail of Core Funding, and even more so for those that do.
No service will see a decrease in funding from Core Funding compared to their income from higher capitation and programme support payments last year. In examining all of the data available to the Department 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. For any service that does experience financial difficulties, a Sustainability Fund will be put 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.
Every year a number of services close and others open. The current data on service closures and openings are not markedly different to the trend in previous years. Services close for a wide range of reasons including retirement of owners or other personal circumstances. Only a small minority relate to financial sustainability issues.
I am committed to ensuring more stability of income for services, and that is one of the key objectives of Core Funding. Core Funding is open to all registered providers subject to their agreement to the terms and conditions of the funding. Becoming a Core Funding Partner Service is, of course, optional but it is my ambition that the maximum number providers choose to participate and I am very encouraged to see the very high number of providers who have already come into contract.
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, practitioners, and society overall.
Further information on Core Funding, including case studies on ECCE services, are available on first5fundingmodel.gov.ie/core-funding/.