Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 124: To ask the Minister for Health and Children if her attention has been drawn to the fact that as little as 10% of children will be eligible for some support under the new child care staffing grant and the impact this will have on the viable operation of community child care facilities and as a result the educational development of pre-school children; if she will reinstate the existing funding model from January 2008; and if she will make a statement on the matter. [24591/07]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The main supports the Government makes available to parents to assist them with their childcare costs are Child Benefit and the Early Childcare Supplement. The latter payment, which is in recognition of the higher childcare costs of pre-school children, is the responsibility of my Office, and it alone amounts to expenditure of over €400m in a full year. These payments are universal and benefit all parents, regardless of their income, labour market status or the type of childcare they choose and regardless of whether they live in urban or rural areas. In addition to these universal supports, Government childcare policy has also recognised the need to target additional supports towards disadvantaged families.

Under the Equal Opportunities Childcare Programme 2000-2006 (EOCP), which is co-funded under the EU Social Fund (ESF), targeted support was provided through the staffing support grant scheme whereby community based not-for-profit childcare providers with a strong focus on disadvantage were awarded grant aid towards their staffing costs to allow them to operate reduced fees to disadvantaged parents. Funding under this scheme was originally awarded for a limited period during which services were expected to move towards sustainability. This funding was subsequently continued to the end of 2007, where it was considered necessary to enable services to continue to make their services accessible to disadvantaged parents. This continuation funding was conditional on a strong focus on disadvantage and that tiered fee structures were implemented by the services in question which ensured that childcare places subsidised were targeted towards those most inneed.

As signalled at the launch of the National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP, a new scheme to support community childcare services with a focus on disadvantage will be introduced on 1 January 2008 and will continue to complement the universal supports in place for all parents. The Community Childcare Subvention Scheme (CCSS) has been allocated €153 million over the next 3 years representing a 16% increase in funding over the EOCP staffing scheme. Under the new scheme, services will be grant aided according to the service they provide and the profile of the parents benefiting from their service. In turn, the subvention received by the services will be reflected in the reduced fees for parents who qualify as disadvantaged under the scheme.

In practice, this will mean that parents with children in such services and in receipt of most social welfare payments (or participating in a scheme such as Community Employment which demonstrates an underlying entitlement to same) will see a €80 weekly subvention in respect of full daycare (with pro-rata reductions in respect of shorter hour services). Parents in receipt of Family Income Supplement (FIS), will see a €30 weekly subvention in respect of full daycare (with pro-rata reductions). A further subvention of €30 per week will be paid where the subvented child is a baby, in recognition of the higher costs associated with the care of children aged under 1 year. Parents who do not qualify under either of these categories will be charged the cost price for their childcare service, however, as community not-for-profit services will, generally, have availed of capital grant aid under the EOCP or NCIP removing the requirement to cover rent and/or a mortgage, and as the services are run on a not-for-profit basis, this should still be significantly below the market price.

I cannot comment on the figure of 10% the Deputy has quoted for the number of children in participating facilities who will benefit from subvention, as until the childcare groups make their returns next month, it will not be possible to establish the relevant figure. I am however informed that such a percentage would be inconsistent with the data provided by groups when they applied for EOCP staffing funding.

It is considered that the new scheme will provide an effective framework for the continued targeting of additional resources towards disadvantaged parents and their children while continuing to support community childcare services generally. The scheme has been informed by and takes account of a number of enhancements recommended by the report of the Value for Money Review of the EOCP. These include the fact that the subvention to services will be more responsive to the level of service provided as well as the degree of parental disadvantage supported and the ceiling for funding, which existed under the previous scheme, is being removed. Account will also be taken of all of the operational costs of the service rather than staffing costs alone. Services, including full-time, part-time and sessional ones, which at present are, in some cases, inaccessibly priced for disadvantaged parents, will be available to them at more appropriate rates under the new scheme.

The new scheme has clear advantages over its predecessor. There is an increase in the level of funding available under it, and a majority of services will benefit from the changes it introduces. Transitional arrangements have been made under which existing grant recipients will continue to be funded at their current levels until 1st July 2008. This is to ensure that existing childcare services are facilitated to adjust to the new scheme, including making any adjustments necessary to their fee structures. As signalled when I announced the new scheme in July this year, the transitional period between now and 1 July 2008 will also be used to monitor and review the impact it will have on individual groups, on the basis of the more detailed and comprehensive data which is due to be received from applicants in November. If appropriate, any adjustments necessary to secure the best outcomes for childcare services and for disadvantaged parents and their children will be considered on the basis of this data and well in advance of the commencement of the new funding levels in July 2008.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 125: To ask the Minister for Health and Children if her attention has been drawn to the fact that application forms for the new child care staffing grants have not been issued to community groups; if it is acceptable to leave such a short window to complete such forms in view of the confidential information which is required; if she will postpone the implementation of the new funding structure for a 12 month period due to the unacceptably tight timeframe; and if she will make a statement on the matter. [24592/07]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As signalled at the launch of the National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP, a new scheme to support community childcare services with a focus on disadvantage will be introduced on 1 January 2008 and will continue to complement the universal supports in place for all parents in the form of Child Benefit and the Early Childcare Supplement. The Community Childcare Subvention Scheme (CCSS) has been allocated €153 million over the next 3 years representing a 16% increase in funding over the EOCP staffing scheme. Under the new scheme, services will be grant aided according to the service they provide and the profile of the parents benefiting from their service. In turn, the subvention received by the services will be reflected in the reduced fees for parents who qualify as disadvantaged under the scheme.

Following the Government decision in July 2007 to adopt the new Scheme, officials in my Office wrote to all of the community childcare services in receipt of existing grant support to advise them of the changes being introduced and inviting them to attend information seminars which were arranged in a number of venues around the country for late September and early October. These have taken place and have provided very useful feedback. The details of the new scheme, the rates of subvention which will be available to community childcare services in respect of disadvantaged parents, and the timeframe within which the new arrangements are being implemented, were also outlined. The information seminars have been followed up by updated information packs, which take account of some of the issues raised and responded to at the seminars. These have issued this week along with the forms which the services will need to complete and return by 2 November 2007 as part of the application process.

As signalled when I announced the new scheme in July this year, the transitional period between now and 1 July 2008 will be used to monitor and review the impact it will have on individual groups, on the basis of the more detailed and comprehensive data which is due to be received from applicants in November. Childcare providers are urged to respect the deadline and based on the data received, if appropriate, any adjustments necessary to the scheme to secure the best outcomes for childcare services and for disadvantaged parents and their children will be considered on this basis and well in advance of the commencement of the new funding levels in July 2008. However under the transitional arrangements which accompany the introduction of the new scheme, existing grant recipients entering the new scheme can continue to be funded at their current levels until 1st July 2008. This is to ensure that existing childcare services are facilitated to adjust to the new scheme, including making any adjustments necessary to their fee structures.