Dáil Éireann Debate, Tuesday - 25 July 2023
995. Deputy Emer Higgins asked the Minister for Children, Equality, Disability, Integration and Youth what steps are being taken to ensure that early learning and childcare funding is invested into smaller independent childcare operators as well as larger childcare chains; and if he will make a statement on the matter. [35954/23]
Amharc ar fhreagraTogether 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. Together for Better is already delivering substantial benefits for children, parents, staff and providers and I am very proud of the significant achievements in its first year of operation.
Core Funding, which began in September 2022, is the new funding stream worth €259 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 differs from the other schemes for subsidising Early Learning and Childcare in that it follows a supply-side model. Services receive funding based on their capacity – the space and opening hours they offer to children – rather than on registrations or attendance. Structuring Core Funding primarily based on capacity means that services have an allocation each year that does not fluctuate in line with children’s attendance. Core Funding contributes to services’ sustainability and significantly increases income for the overwhelming majority of services and provides greater funding stability. This stability of funding should be especially helpful to new services starting up.
Core Funding has provided evidence of increased capacity in Early Learning and Childcare. Initial analysis shows the increased capacity is the type of capacity that is in highest demand relative to supply (i.e. more baby and toddler places as well as school-age places).
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 allocation model for year 2 of the scheme allocates:
€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 Partner Services. These include a flat rate allocation of €4,075 for all sessional-only services, which will benefit approximately 1,700 Partner Services delivering the ECCE programme, 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.
This investment is also complemented by other measures for services.
Early learning and childcare services are able to apply for the Temporary Business Energy Support Scheme (TBESS), which supports all eligible businesses in meeting the increased cost of electricity and/or natural gas in the eligible periods.
Special supports are also 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 am committed to working with Partner Services delivering early learning and childcare for the public good.
