Seán Sherlock (Cork East, Labour)
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Question 162: To ask the Minister for Health and Children if she will review the new EOCP funding regulations in view of the fact that the proposals will ghettoise all community based childcare as working class parents who fall short of the subvention criteria move their children to other schools which will have a negative effect on the remaining pupils who will all be classed as social welfare children (details supplied); and if she will make a statement on the matter. [35721/07]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As the Deputy will be aware, I have responsibility for the Equal Opportunities Childcare Programme 2000-2006 (EOCP) and the National Childcare Investment Programme 2006-2010 (NCIP), which are being implemented by the Office of the Minister for Children.

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 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. 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 subject to the condition that tiered fee structures were implemented by the services in question.

With the closure of the EOCP in December 2007, to continue to support community childcare services to provide affordable childcare to disadvantaged parents, the Community Childcare Subvention Scheme (CCSS) is being introduced from January 2008 under the Exchequer funded National Childcare Investment Programme 2006-2010 (NCIP), the successor programme to the EOCP. The CCSS has been allocated €153 million over the next 3 years, representing a 16% increase in funding over the EOCP staffing scheme, and will continue to support community childcare services to provide reduced childcare fees for disadvantaged parents, complementing the universal supports in place for all parents. Under the new scheme, it will be possible to ensure that the level of grant aid which individual services qualify for will reflect the actual level of service they provide and the profile of the parents benefiting from their service. As part of their application for funding under the new scheme, services are required to ask parents using their services to complete a simple declaration form which is to be included in a return to my Office and on which basis the level of subvention for each service will be determined. The subvention received by services will, in turn, 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) or parents in receipt of Family Income Supplement (FIS), will have a weekly subvention paid to the service in respect of their child. A higher subvention 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 for subvention 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 or a mortgage, and as the services are run on a not-for-profit basis, this should still be significantly below the market price.

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. Existing EOCP staffing grant recipients who enter the new scheme will continue to be funded at their current levels until July 2008. My Office has engaged in a series of meetings with existing grant recipients to outline to them the details of the new scheme and to gather feedback from the services themselves. A meeting with representatives of the City and County Childcare Committees has also taken place.

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. When I announced the new scheme in July of this year, I signalled my intention to undertake a review of the Scheme on the basis of the more detailed and comprehensive data which was forwarded to my Office in November and December. I am pleased to advise the Deputy that the review has been completed and the following adjustments to the scheme have been approved by the Government: the childcare subvention rates, which form the basis for assessing the level of grant funding payable to community childcare services, have been increased from €80 to €100 per week in the case of Band A parents and from €30 to €70 per week in the case of Band B parents; services will also be grant aided to enable them to provide reduced childcare fees for parents in Band C who are marginally above the Family Income Supplement (FIS) threshold and low income parents who qualify under this measure will benefit by €45 per week per full-time place; where a parent moves to a lower Band (e.g. from social welfare into employment), the subvention paid in respect of them will be withdrawn on a tapered basis with the effect that where a parent would no longer qualify for a Band A payment, he or she will be treated as a Band B parent in the following year; special provisions will be provided for in the case of childcare services where, for valid reasons, it is not possible to assess grant funding on the basis of annual parental declarations alone (e.g. women's refuges, special services for children of drug misusers) and, in exceptional cases, where special levels of funding provision may be required; in recognition of the on-going input of the community and voluntary sector, and to provide stability for services which would otherwise receive very low levels of grant subvention (e.g. small rural services) a minimum annual grant level of €20,000 is being introduced.

As a transitional measure during 2008-2010, services which would otherwise face a significant decrease in their existing level of grant support from July 2008, will continue to receive grant aid equal to not less than 90% of their previous grant level during July-December 2008, equal to not less than 85% of that amount in 2009, and equal to not less than 75% of that amount in 2010. The transitional grant funding will be conditional on all requirements of the Scheme being complied with including the return of annual applications together with completed parent declaration forms and the implementation of tiered fees based on the subvention levels for Band A, B and C parents.

I am pleased to advise the Deputy that the Group in question has been approved for transitional funding under the NCIP Community Childcare Subvention Scheme (CCSS), and a letter of approval has issued from the Childcare Directorate of my Office. This funding will, for the first six months of 2008, be based on the level of funding currently being provided to the Groups under the EOCP staffing support grant scheme and subject to the necessary contractual arrangement with Pobal, who manage the day to day operation of the EOCP and NCIP.