Dáil Éireann Debate, Tuesday - 25 July 2023
970. Deputy Eoin Ó Broin asked the Minister for Children, Equality, Disability, Integration and Youth if he is aware that some small childcare providers are feeling forced to alter the service they currently provide due to funding restraints under the current model; if he is engaging with providers regarding these issues; if any matters are under consideration in order to resolve the issues; and if he will make a statement on the matter. [35618/23]
Amharc ar fhreagraCore Funding, which began in September 2022, is a new funding scheme worth €259 million in its first full year.
One of the key objectives of Core Funding is to support the sector as a whole with the introduction of direct supply-side funding, in addition to ECCE and NCS, to create a more stable and sustainable financial environment.
The primary purposes of Core Funding 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 all providers.
The two key calculations for Core Funding are a Base Rate and Graduate Premiums.
The Base Rate for Core Funding aims to contribute to the overall operating costs of a service and is directly linked to a service’s capacity - the space and opening hours they offer to children – rather than on registrations or attendance. Therefore, the more opening hours, weeks, and rooms a service operates, the higher Base Rate they will receive. This acknowledges the current operating model and business structures in the sector and takes into consideration the differing operating costs.
The Graduate Premium meanwhile aims to support a graduate led workforce in early learning and care and to support career progression and pathways. This funding intentionally rectifies some of the disparities of the previous ECCE higher capitation payments, which created a split system between ECCE and non-ECCE in early learning and care. This approach extends support for graduates across the early learning and care system.
Core Funding in Year 1 has contributed to services’ sustainability and significantly increased income for the overwhelming majority of services and provides greater funding stability.
For Year 2 of Core Funding, the budget will increase by 11% to reach €287 million, providing a sustainable platform for investment with increases for all services.
The additional funding for Core Funding Year 2 is being allocated as follows:
• €8.47 million towards funding the natural growth of the sector,
• €6.11 million towards non-staff overheads, to support Partner Services with increases to non-staff costs, while maintaining the fee management system,
• €2.2 million towards administrative staff time,
• €4 million towards the removal the year 3 requirement for the Graduates Premiums, underpinned by EROs, and
• €7.22 million for new targeted measures which are aimed at improving the sustainability of smaller and sessional services. These include a flat rate allocation of €4,075 for all sessional-only services, which will benefit approximately 1,700 services delivering ECCE, and a minimum base rate allocation of €8,150, which will benefit small, part time and school-age services.
These decisions were made using the most recent data available to allocate Core Funding for Year 2, with data emerging from current operations of services from March 2023 underpinning the recently announced allocation model, as well as the most up-to-date macroeconomic projections. It was also informed by ongoing engagement with provider representatives and providers of all types, via various specific consultation activities and through various fora, including through the Early Learning and Childcare Stakeholder Forum.
Special supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City or County Childcare Committee (CCC). This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, as well as more specialised advice and support appropriate to individual circumstances.
I strongly encourage services experiencing financial difficulty or with concerns about their viability to avail of these case management supports.
