Jennifer Whitmore (Wicklow, Social Democrats)
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521. To ask the Minister for Children, Equality, Disability, Integration and Youth when reforms to the funding model for early learning and childcare services will be introduced; and if he will make a statement on the matter. [7667/22]

Roderic O'Gorman (Dublin West, Green Party)
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The report of an Expert Group, Partnership for the Public Good: A new Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC), was published on 7 December 2021 following consideration by Government and acceptance of its 25 recommendations. Work has now commenced on implementation of these recommendations.

The new funding model outlined in Partnership for the Public Good comprises four key elements: two new elements (Core Funding and Tackling Disadvantage funding) and two elements which are developments on the existing funding approaches of the Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS).

These four elements, and their associated conditions, will form an interlocking and integrated system of funding which is designed to ensure progress on each of the main goals of ELC and SAC policy, and move in the direction of enhanced public management.

Announcements in Budget 2022 signalled the commitment to the first stage of implementation of the Expert Group’s recommendations.

In particular, a new Core Funding stream for services to support improved quality, affordability, and sustainability and the establishment of an Employment Regulation Order, is being introduced in September 2022 and will be worth up to €69 million in 2022, equivalent to €207 million in a full year.

A Transition Fund will be also available to ELC and SAC services from May to August inclusive, during the period between the phasing out of the Employment Wage Subsidy Scheme (EWSS) in April and the introduction of the new Core Funding stream in September. The Transition Fund will also include the condition that services do not increase the fees charged to parents above September 2021 levels.

The introduction of fee control measures is one of the recommendations of the Expert Group, and further information on proposed fee management mechanisms in the longer term is available in the Group's report.

Budget 2022 also announced an extension in the age of children who are eligible for the universal National Childcare Scheme (NCS) subsidy and a change to how 'wraparound hours' for NCS subsidy are determined. These measures were also recommended by the Expert Group.

The recommendations of the Expert Group are designed to deliver quality for children, affordability for parents, stability for providers, and support employers to improve pay and conditions for staff. The report of the Expert Group is available here: first5fundingmodel.gov.ie/report/.

Full implementation of all recommendations will be progressed in the coming years as additional funding is secured through the annual Estimates process. An impact monitoring element of this approach to funding is also being developed which will capture data on key indicators that it is anticipated will be addressed through the scheme including workforce pay, qualifications, turnover rates, non-contact time etc. Progress on the implementation of the Expert Group’s recommendations will be reported in the context of the Annual Implementation Report for the First 5 whole-of-government strategy for babies, young children and their families.

Jennifer Whitmore (Wicklow, Social Democrats)
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522. To ask the Minister for Children, Equality, Disability, Integration and Youth if he has corresponded with childcare providers regarding reforms to the funding model for early learning and childcare services; if his attention has been drawn to the need for childcare providers to be able to plan ahead and the current uncertainty regarding the timeline of the new proposals; and if he will make a statement on the matter. [7668/22]

Roderic O'Gorman (Dublin West, Green Party)
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On 7 December, I launched Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare, available at first5fundingmodel.gov.ie/wp-content/uploads/2021/12/Funding-Model-FINAL-REPORT-2.pdf.

This report was delivered by an Expert Group which was independently chaired and comprised national and international experts and made 25 recommendations which were accepted in full by Government and are now beginning to be implemented. On the occasion of the launch there was a direct communication to Early Learning and Care and School Age Childcare providers about the report.

As per the recommendations of the Expert Group, the new funding model comprises four key elements:

1. Core Funding, a new supply-side payment for providers designed to support quality (including improved staff pay), sustainability, and enhanced public management, with associated conditions in relation to fee control and cost transparency, incorporating funding for administration and to support the employment of graduate staff;

2. Funding for new universal and targeted measures to address socio-economic disadvantage;

3. The Early Childhood Care and Education (ECCE) programme, but with funding to support the employment of graduate staff incorporated into Core Funding, and AIM extended beyond the ECCE programme (in line with First 5 commitments);

4. An amended National Childcare Scheme (NCS) to provide enhanced universal support to all families, tailor additional supports to high volume users of services, and resolve certain issues arising from the NCS work/study test or wraparound policy.

The announcement of Budget 2022 signalled the introduction of many elements of this model this year. In particular, €69 million for the new Core Funding stream (equivalent to €207 million in a full year) is being made available from September. Developments to the NCS will also come into effect this year including an extension of the universal subsidy to children of all ages up to 15 and a change to the practice of deducting time spent in ECCE or school from the number of hours of NCS subsidy for which families are eligible.

Core Funding will support providers in meeting their operating costs, including increased costs related to improved quality measures, in return for a commitment that fees to parents will not increase and is contingent on an Employment Regulation Order being agreed by the Joint Labour Committee. Core Funding amounts to an estimated increase of 16% in the total annual income to the sector.

Initial information about the scheme was made available to providers as part of the Budget FAQ: gov.ie/en/publication/b3e97-budget-2022-overview-and-faqs-for-early-learning-and-care-elc-and-school-age-childcare-sac-providers-and-parents/.

Further information was issued on 4th of February. This reiterated that Core Funding will be allocated to services based on their capacity and the qualifications of those working in a service in line with three elements, with the majority of Core Funding (i.e. €172 million of the €207 million) distributed via the first of these elements:

1. Main Base Rate: Number of child places in an age group * Value based on ratio that applies to age group * Hours of operation per week * Weeks open per year

2. Graduate Lead Educator Uplift: Applied at room level, scaling in line with hours per week and weeks per year group is operating (Maximum one Graduate Lead Educator uplift per ELC room)

3. Graduate Manager Uplift: Applied at service level, scaling in line with hours per week and weeks per year service is operating (Maximum one Graduate Manager uplift per service)

A Ready Reckoner to support services to determine the potential value of Core Funding will be available in early March along with further communications to the sector about the funding and contract.

In the interim period in advance of Core Funding, significant additional investment is being made in the sector through the Employment Wage Subsidy Scheme (EWSS), which will remain available to the sector until April 2022, with a continued exemption to the turnover rule for employers in the sector. Following the cessation of EWSS, a once-off Transition Fund will operate from May to August 2022, to support providers in the period leading up to the new Core Funding stream, in return for a commitment not to increase fees from September 2021 levels. The sum paid to each service under the Transition Fund will depend on the service’s capacity and location, and will reflect opening hours.

Neale Richmond (Dublin Rathdown, Fine Gael)
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523. To ask the Minister for Children, Equality, Disability, Integration and Youth when a Montessori school (details supplied) will receive a funding model and contract for the upcoming year for its ECCE payment; and if he will make a statement on the matter. [7884/22]

Roderic O'Gorman (Dublin West, Green Party)
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The ECCE 2022/2023 programme funding agreement will be available to all early learning and care (ELC) and school-age childcare (SAC) providers for signing, in early June 2022.

The new core funding stream announced as part of Budget 2022 will support ELC and SAC providers in meeting their operating costs, including costs related to improved quality measures, in return for a commitment that fees to parents will not increase from September 2021 levels and is contingent on an Employment Regulation Order being agreed by the Joint Labour Committee.

Initial information about the scheme was made available to ELC and SAC providers by my Department as part of the Budget 2022 ELC and SAC FAQ:

gov.ie/en/publication/b3e97-budget-2022-overview-and-faqs-for-early-learning-and-care-elc-and-school-age-childcare-sac-providers-and-parents/.

Further information was issued on 4 February. This reiterated that core funding will be allocated to services based on their capacity and the qualifications of those working in a service in line with three elements, with the majority of core funding (i.e. €172 million of the €207 million) distributed via the first of these elements:

1. Main Base Rate: Number of child places in an age group * Value based on ratio that applies to age group * Hours of operation per week * Weeks open per year,

2. Graduate Lead Educator Uplift: Applied at room level, scaling in line with hours per week and weeks per year group is operating (Maximum one Graduate Lead Educator uplift per ELC room)

3. Graduate Manager Uplift: Applied at service level, scaling in line with hours per week and weeks per year service is operating (Maximum one Graduate Manager uplift per service).

A Ready Reckoner to support services to determine the potential value of core funding will be available in early March along with further communications to the sector about the funding and contract.

In the interim period - in advance of core funding, significant additional investment is being made in the sector through the Employment Wage Subsidy Scheme (EWSS), which will remain available to ELC and SAC services until April 2022, with a continued exemption from the turnover rule for employers in the sector.

Following the cessation of EWSS, a once-off transition fund will operate from May to August 2022, to support ELC and SAC providers in the period leading up to the new core funding stream, in return for a commitment not to increase fees from September 2021 levels. The sum paid to each service under the transition fund will depend on the service’s capacity and location, and will reflect opening hours.

Neale Richmond (Dublin Rathdown, Fine Gael)
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524. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will consider increasing funding for Montessori schools under the ECCE scheme given that an increase has not been provided since 2010; and if he will make a statement on the matter. [7885/22]

Roderic O'Gorman (Dublin West, Green Party)
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A review of the ECCE programme which is due to commence shortly. The review will give an opportunity to providers and parents to express their concerns and will also inform the future development of the programme.

The review will also give a range of stakeholders, including providers and parents, offering an opportunity to not only highlight the strengths of the programme as it has evolved in recent years but also identify potential barriers or unintended consequences that may have emerged as the programme has evolved. This review will then be considered by Government and form the basis of any future changes to the scheme.

The Deputy may also be aware of the recommendations of an Expert Group to develop a new funding model for early learning and childcare, which were adopted by Government in December. This marks a new departure in State funding of the sector and is a significant step towards ensuring high-quality, affordable, sustainable and accessible services.

The Expert Group report informed the transformative package of measures for the sector committed in Budget 2022, including the Core Funding stream. Core Funding will operate from September 2022 to support improved quality, affordability, and sustainability.

Core Funding will be worth up to €69 million in 2022, equivalent to €207 million in a full year.

Neale Richmond (Dublin Rathdown, Fine Gael)
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525. To ask the Minister for Children, Equality, Disability, Integration and Youth if his attention has been drawn to the fact that many Montessori schools are considering going private given that the funding they receive from the State is not sufficient; the steps he is taking to address the issue; and if he will make a statement on the matter. [7886/22]

Roderic O'Gorman (Dublin West, Green Party)
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Early Learning and Care (ELC) services are almost exclusively privately operated, with a mix of private for-profit provision and community not-for-profit provision. Income for ELC services comes from a combination of public funding and parental fees.

Currently, the major funding programmes for ELC services are the Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS). ECCE provides for fully funded pre school provision for children during term time for the two years before they begin primary school. NCS provides universal and income assessed subsidies to families in line with their income and other circumstances to offset ELC costs. Both ECCE and NCS funding are paid directly to service providers.

On 7 December, I launched Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare, available at

first5fundingmodel.gov.ie/wp-content/uploads/2021/12/Funding-Model-FINAL-REPORT-2.pdf.

This report was delivered by an Expert Group which was independently chaired and comprised national and international experts and made 25 recommendations which were accepted in full by Government and are now beginning to be implemented.

As per the recommendations of the Expert Group, the new funding model will comprise four key elements:

1. Core Funding, a new supply-side payment for providers designed to support quality (including improved staff pay), sustainability, and enhanced public management, with associated conditions in relation to fee control and cost transparency, incorporating funding for administration and to support the employment of graduate staff;

2. Funding for new universal and targeted measures to address socio-economic disadvantage;

3. The Early Childhood Care and Education (ECCE) programme, but with funding to support the employment of graduate staff incorporated into Core Funding, and AIM extended beyond the ECCE programme (in line with First 5 commitments);

4. An amended National Childcare Scheme (NCS) to provide enhanced universal support to all families, tailor additional supports to high volume users of services, and resolve certain issues arising from the NCS work/study test or wraparound policy.

The announcement of Budget 2022 signalled the introduction of a number of elements of this model this year. In particular, €69 million for the new Core Funding stream (equivalent to €207 million in a full year) is being made available from September. Developments to the NCS will also come into effect this year including an extension of the universal subsidy to children of all ages up to 15 and a change to the practice of deducting time spent in ECCE or school from the number of hours of NCS subsidy for which families are eligible.

Core Funding will be allocated to services based on their capacity and the qualifications of those working in a service. Core Funding will support providers in meeting their operating costs, including increased costs related to improved quality measures, in return for a commitment that fees to parents will not increase and is contingent on an Employment Regulation Order being agreed by the Joint Labour Committee. Core Funding is estimated to amount to an increase of 16% in the total annual income to the sector.

Communications about Core Funding have issued to ELC providers in recent weeks and further information will be made available in the coming weeks. A Ready Reckoner to support services to determine the potential value of Core Funding will be available in early March.

In the interim period in advance of Core Funding, significant additional investment is being made in the sector through the Employment Wage Subsidy Scheme (EWSS), which will remain available to the sector until April 2022, with a continued exemption to the turnover rule for employers in the sector. Following the cessation of EWSS, a once-off Transition Fund will operate from May to August 2022, to support providers in the period leading up to the new Core Funding stream, in return for a commitment not to increase fees from September 2021 levels. The sum paid to each service under the Transition Fund will depend on the service’s capacity and location, and will reflect opening hours.