Dáil Éireann Debate, Tuesday - 14 May 2024
521. Deputy Jackie Cahill asked the Minister for Children, Equality, Disability, Integration and Youth if a childcare centre (details supplied), which is community run, currently catering for over 100 children with 26 employees, will be allowed to issue its own fees in order to compete with the public sector; and if he will make a statement on the matter. [21501/24]
Amharc ar fhreagraTo be eligible for Core Funding for the 2023/2024 programme year, it is necessary for all Partner Services to agree to the Core Funding Fee Management terms and conditions as laid out in the Core Funding Partner Service Funding Agreement, and the fee management guidelines. These terms and conditions require services not to increase the fees charged to parents above what was charged on 30 September 2021. This action is guided by the recommendations of the Expert Group, as approved by Government, to ensure that the introduction of fee management to the sector is done in a sustainable and considered manner.
In Year 1 of Core Funding, some €259 million was allocated under the scheme and 99% of services saw their income increase through Core Funding with 1%, or close to 60 services, receiving top up payments to ensure their income did not decrease for the same level of provision offered.
For the second year of operation, Core Funding increased by €28 million, an 11% increase, to a total of €287m.
Arising from Budget 2024, the Core Funding allocation for year 3 of the scheme will increase by 15% - to €331 million. This will support the delivery of a range of enhancements in Year 3 of the scheme to support improved affordability and accessibility for families, improved pay and conditions for the workforce and improved sustainability for providers. The details of the allocation model for year 3 of Core Funding will be published in the coming weeks.
Increasing the Core Funding budget while maintaining the same level of conditions on fees, will help embed the Core Funding Fee Management system in the sector and prepare the sector for the ongoing development of fee management in future years.
It is a matter for providers to decide whether they wish to withdraw from Core Funding and the associated Fee Management. However, I am confident that given the level of investment in this Scheme, which will increase to €331 million for programme year 3, services should not need to take this step.
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.
Supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City/County Childcare Committee (CCC). Once a service engages with their local CCC they will be able to avail of supports through the case management process.
Through this process, local CCC and Pobal work together to assess and provide support to ELC and SAC services experiencing difficulties. This support can take the form of general operational supports as well as more specialised advice and support appropriate to the individual circumstances of a service. In some instances, financial supports may be deemed appropriate in tandem with the case management process.
Financial supports, which may also be accessed through the case management process, are available to all Core Funding Partner Services, both community and private, who are experiencing financial difficulty, following a financial assessment by Pobal.
Officials in my Department have asked Pobal to make contact with the service’s local CCC, in order to advise them of the supports available to them.
I would strongly encourage any service who would like to avail of advice or supports on a concern regarding their sustainability, to reach out to their local CCC. Contact details for their local CCC can be found at www.myccc.ie
