Patrick Costello (Dublin South Central, Green Party)
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128. To ask the Minister for Children, Equality, Disability, Integration and Youth the details of the forthcoming core payment for early years providers; the interim measures he will put in place to ensure that fees will not rise for parents; and if he will make a statement on the matter. [4998/22]

Roderic O'Gorman (Dublin West, Green Party)
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The issue of childcare fees for parents is one that I and the Government are committed to tackling. Significant Government support provided to the Early Years sector throughout the pandemic has, in addition to providing essential stability and sustainability, has also helped ensure that fee increases have been kept to near zero over this period. The most recent data available shows that on average fee increases in the period 2020 to 2021 were 0.39% % for Full Day services, 0.15% for Part-time services and 0.41% for sessional services.

A recently-published Expert Group report on a new funding model for Early Learning and Care (ELC) and School-Age Childcare (SAC) provided the basis for the transformative package of measures for the sector committed in Budget 2022, including a new Core Funding stream.

Core Funding will operate from September 2022 and will consist of a supply-side payment to providers to support improved quality, affordability, and sustainability. Core Funding will be worth up to €69 million in 2022, equivalent to €207 million from 2023.

It will require a commitment from providers not to increase fees to parents from September 2021 rates. Fixing fees will ensure that parents feel the affordability benefits of the National Childcare Scheme and the Early Childhood Care and Education programme.

The calculation of the value of Core Funding to an individual provider will be predominantly based on the level of capacity that they commit to offering during the contract period, meaning providers will have a stable income source based on the service they deliver.

Since the start of the pandemic, a range of measures have been put in place to ensure that additional costs have not been passed on to parents and these have been largely successful. Most notably, ELC and SAC employers benefit from an exemption to the turnover rule for the Employment Wage Subsidy Scheme (EWSS) which will operate until April 2022.

Between the end of EWSS to the start of Core Funding in September 2022, a Transition Fund will be available to providers. This is also contingent on an agreement not to increase fees from September 2021 levels.

Communications issued to providers following the Budget about Core Funding and the Transition Fund. Further extensive communications will issue to the sector to give further details on the new funding streams.