Dáil Éireann Debate, Thursday - 8 September 2022
1272. Deputy Carol Nolan asked the Minister for Children, Equality, Disability, Integration and Youth if he will address matters raised in correspondence (details supplied) concerning the model that is being put in place with respect to core funding for the early years sector; and if he will make a statement on the matter. [43933/22]
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 and their families. To achieve this, there is a need for greater State investment and greater public management of provision.
Core Funding, which begins on 15th 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 without additional costs being passed on to parents.
The majority of Core Funding (i.e. €183 million of the €221 million) 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 €183 million includes allocations for improvements in staff pay and conditions (€138 million), for administrative staff/time (€25 million), and a contribution to non-staff overhead costs (€20 million). 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.
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.
Approximately two thirds of the funding for Core Funding (€138 million of the full €221 million) is intended to contribute to improved pay rates across different categories of staff. This has significantly contributed to enabling Employment Regulation Orders (EROs) to be agreed between employer and employee representatives. These EROs come into effect on 15th 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. 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.
Detailed guidance was provided to accompany the Ready Reckoner and providers were advised to follow this guidance closely in order to generate an accurate result for their service.
As advised in the communications that issued alongside the Ready Reckoner, the tool is not an exact calculation and should not be relied on for financial planning. The Core Funding Ready Reckoner gives an approximate indication of your potential value for Core Funding based on the information that you provide in response to the questions asked.
The Core Funding application process which is now available provides the most accurate Core Funding value that services can expect. Providers can now use this option to determine their actual Core Funding value before deciding whether to activate their funding agreement.
With regard to your comments on administration of the ECCE programme: Last month I announced the appointment of Stranmillis University College, Belfast to undertake an independent review of the ECCE programme. The review will assess whether the ECCE Programme is meeting these core objectives and will identify any changes or improvements that can be made to the Programme, based on international evidence and experience to date.
As part of this review there will be wide stakeholder engagement which will include parents and pre-school providers. The review will be completed in Quarter 3 of 2023. Further information on the review as well as the consultation that will form part of the review will be issued in due course.
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/.
