Seán Sherlock
Ceist:1238. Deputy Sean Sherlock asked the Minister for Children, Equality, Disability, Integration and Youth if he will address matters raised in correspondence (details supplied) regarding core funding. [43135/22]
Amharc ar fhreagraThursday, 8 September 2022
Ceisteanna (1238)
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, parents and 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 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 additional costs being passed on to parents.
The majority of Core Funding will be distributed based on a service's capacity - the opening hours, opening weeks and the age group of children for whom services are provided as well as number of places available. This funding for capacity includes allocations for improvements in staff pay and conditions, for administrative staff/time, and a contribution to non-staff overhead costs.
In addition, a further €38 million is allocated to contribute to support graduates to be Lead Educators across ELC and to support graduates as Managers in ELC or combined ELC and SAC services. Heretofore funding has only been available in respect of graduate Room Leaders in the ECCE programme. The Graduate Lead Educator Premium in Core Funding is paid as a top up on the number of hours of provision that is led by a graduate. The Graduate Manager Premium is paid as a top up on the number of hours of operation of a service whose manager is a graduate.
Core Funding is a new and complex system that has been developed in a relatively short period of time. There have been some technical difficulties experienced in the process of applying for Core Funding which my Department has acknowledged. Pobal have provided assurance that these system issues have been resolved and that the system performance has now significantly improvement. Work is ongoing to ensure that the application process will be much smoother for providers going forward.
Partly in recognition of these issues, my Department has advised providers of an extension of the date by which they can complete the application process and still be eligible for backdated funding. Providers can accept the funding agreements up until 9th September and be assured of backdated payments from 1st September.
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. While Core Funding will operate in addition to and alongside ECCE (standard capitation), AIM, CCSP and NCS, it 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 proportion 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 receive income of €1,829.30 per week. This will be matched in Core Funding.
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 happy to see the very high number of providers who have already signed up.
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. 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.
Further information on Core Funding, including case studies on ECCE services, are available on first5fundingmodel.gov.ie/core-funding/.