Dáil Éireann Debate, Wednesday - 26 October 2022
139. Deputy Catherine Murphy asked the Minister for Children, Equality, Disability, Integration and Youth if his attention has been drawn to a letter from a ECCE provider (details supplied); if he will review the core funding policy in view of the contents of the letter; his plans to increase capitation; and if he has conducted and or if he will conduct a sectoral impact review regarding the introduction of his core funding policy change. [53798/22]
Amharc ar fhreagraI have become aware that some Early Childhood Care and Education (ECCE) providers intend to fully close, or reduce their service provision by closing their ECCE room/s, on 11 and 25 November 2022.
I do not believe that closures are justified, given the very significant additional investment secured for the sector in recent years, with funding in 2023 to exceed €1 billion. These closures will be disruptive for young children and their families and will undermine confidence in the sector.
I note that those protesting are seeking an increase in the weekly ECCE capitation from €69 to €76 per child. This level of funding is already available. Through a combination of ECCE capitation and Core Funding, ECCE providers can already avail of weekly funding of at least €78.75 per child (€69 ECCE capitation plus €9.75 per ECCE child place per week in Core Funding base rate). Where services have less than full occupancy, the effective increase on a per child basis is greater.
I would also like to clarify that, while the Higher Capitation and Programme Support Payments have been subsumed into Core Funding, no service loses out under Core Funding. Indeed, the overwhelming majority of providers substantially benefit financially from Core Funding.
I think it is also important to refute the claim of there having been only one increase in the level of ECCE capitation since the programme started in 2010. The various developments to the ECCE programme between 2010 and 2022 (related to capitation, ratios and non-contact time/programme support payments), demonstrate an increase in income of up to 22.6% for services without a graduate lead educator and 22% for services with a graduate lead educator. The introduction of Core Funding on top of ECCE standard capitation means up to €866.25 per week is now available for a session without a graduate lead educator (34.3% higher than in 2010) and up to €932.85 per week is now available for a session with a graduate lead educator (24.4% higher than in 2010). The excludes other funding for ECCE providers, attached to the Access and Inclusion Model (AIM) as well as significant supports for ECCE and other providers over the course of the pandemic - estimated to cost in excess of €1 billion.
It is also important to address the issue of the fee freeze condition which has been introduced with Core Funding. This is an essential step in the implementation of the new funding model to ensure that parents are not faced with further additional costs and that the developments to the National Childcare Scheme are felt by parents rather than being absorbed by fee increases. The substantial additional investment available through Core Funding adequately compensates for this condition.
ECCE-only services across the country form an integral part of the Early Learning and Care (ELC) and School-Age Childcare (SAC) system. Their exact operations can vary but typically, they open to children for 15 hours per week, 38 weeks per year. Core Funding is distributed in a fair, reasonable and transparent manner that is related to services’ costs of delivery, contributing to both staff costs, including administration staff/time, and non-staff overheads. Consequently, services opening longer hours or offering more places will receive a higher value of Core Funding than other services as they have higher delivery costs. This is connected to the staffing requirements of ELC and SAC as set out in Regulations.
There is a need for greater visibility and understanding of financial basis on which ELC and SAC services operate, in the context of a complex and diverse sector, in order to better understand the impact and interaction of income, costs, surplus and profit. I am pleased therefore that the recent data collection for the 2021/2022 Annual Sector Profile, including questions on income and costs, will allow the latest available financial position to inform the next policy developments.
The new funding model was designed with extensive stakeholder consultation and engagement, reports of which are published. Since Core Funding was announced last year as part of Budget 2022, the Department has hosted eight meetings of the Early Learning and Childcare Stakeholder Forum (ELCSF), and several Core Funding specific meetings with the ELCSF and provider representatives. The ELCSF includes multiple sectoral organisations and representative groups, including provider representatives, such as the Federation of Early Childhood Providers (FECP), Early Childhood Ireland (ECI) and the Association of Early Childhood Professionals (ACPI). In particular, during August, September and October, there have been frequent meetings with provider representative groups in preparation for the commencement of Core Funding and to support the initial implementation of the scheme, with the most recent meeting of the provider representative groups held on 20 October. There has also been a number of formal correspondence to and from provider representative groups, as well as individual contacts. I will continue to engage with provider representative groups through the ELCSF.
ELC and SAC providers are fundamental partners in the delivery of the new funding model which is intended to improve quality for children, including through improved terms and conditions for staff; affordability and accessibility for parents; and stability and sustainability for services. As noted by an Expert Group on funding for the sector, there can be an absence of a strong parental voice in the sector and the new funding model aims to balance the interests of parents, providers, the workforce, and the State, where there is significant public investment in a privately delivered system. The new funding model has been approved by Government and is widely welcomed by sectoral representative groups advocating for parents, children, the workforce and providers. To date, 93% of providers nationally have signed up to Core Funding and this Scheme remains open to all remaining providers who wish to deliver early learning and childcare for the public good.
Together for Better, the new funding model, is about getting the most out of the three early learning and childcare programmes, ECCE including AIM, NCS and Core Funding, working together and ensuring stability and sustainability in the sector. I have been unequivocal that I do not want any services to be faced with financial sustainability issues and I am fully committed to working with any such service to support them in delivering early learning and childcare for the public good. This means accepting new responsibilities including greater public management in relation to fee management, quality improvements, and transparency in relation to operations.
Services that are experiencing difficulty and who would like support are encouraged to contact their City/County Childcare Committee (CCC) to access case management supports. The Department, Pobal and the CCCs continue to closely monitor trends concerning services entering case management and will continue to maintain the availability of Sustainability Funding for individual services at risk.
I have acted in good faith to ensure that an appropriate funding model is now in place to support the sector in a sustainable way into the future, and which can be further developed in response to analysis of emerging evidence. Significant additional investment is being made in the sector and a number of supports and safety nets are available for the small number of providers who may experience financial difficulties due to a range of factors. Together for Better, the new funding model, is already delivering substantial benefits for children, parents, staff and providers. I hope that providers who are contemplating closures will reconsider their position.
