Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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164. To ask the Minister for Children, Equality, Disability, Integration and Youth the way that the core funding will operate; the criteria for core funding; and if he will make a statement on the matter. [8571/22]

Roderic O'Gorman (Dublin West, Green Party)
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The recommendations of an Expert Group to develop a new funding model for early learning and childcare 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 new Core Funding stream. Core Funding will operate from September 2022 to support improved quality, affordability, and sustainability.

Core Funding will be available to registered early learning and childcare providers, including full day care providers, ECCE-only providers, and stand-alone school-age providers, subject to the service agreeing to come into contract for the scheme. It will be a payment directly to services who choose to participate in the scheme.

The total available budget for Core Funding is equivalent to €207 million in a full programme year, contingent on an Employment Regulation Order being agreed by the Joint Labour Committee. Core Funding will be allocated to services based on their capacity and the qualifications of those working in a service in line with the following three elements, with the majority of Core Funding (i.e. €172 million of the €207 million) distributed via the first of these elements:

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

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)

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)

Higher levels of funding will be available for capacity for younger children, to support the higher operating costs for these children arising from the higher staff ratio requirements.

Participation in Core Funding for early learning and childcare will require a commitment not to increase fees to parents from September 2021 rates in return for the increased State funding. This feature of the scheme will ensure that parents feel the full affordability benefits of the National Childcare Scheme (NCS) and the Early Childhood Care and Education (ECCE) programme. Services will also be required to offer the NCS and/or the ECCE programme to all eligible children/parents, in line with their operations.

Services will also be invited to report on the quality development measures they are pursuing.

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 the full contract requirements.

In the interim period, until April 2022, Early Learning and Care and School Age Childcare employers continue to be eligible to access the Employment Wage Subsidy Scheme (EWSS) which has provided very substantial investment in the sector since August 2020.  Following the cessation of EWSS, ELC and SAC providers will have access to a Transition Fund between May and August in advance of the introduction of Core Funding from September.

The level of investment being made available for Core Funding is an acknowledgement that high quality early learning and childcare costs more than the current income to the sector.

The aim of Core Funding is to allow providers’ costs to increase to improve quality but to ensure these costs are not passed onto parents in fees and that services are not made unsustainable.  

This is the start of a multi-annual investment plan and is part of Government’s commitment to realising the First 5 target of investment of approximately €1 billion by 2028. Core Funding introduces a strategic way of funding the sector and begins to implement the recommendations of the Expert Group to develop a new funding model.  

Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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165. To ask the Minister for Children, Equality, Disability, Integration and Youth if the core funding will be based on capacity rather than attendance; the way that this will be regulated; and if he will make a statement on the matter. [8572/22]

Roderic O'Gorman (Dublin West, Green Party)
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Core Funding will be allocated to services based on their capacity and the qualifications of those working in a service, with the large majority of Core Funding to be allocated based on capacity.  Capacity is a measure of the places being offered and the number of hours of service being provided.

Calculation of the capacity of a service takes into account the regulatory requirements. Under the Regulations, the number of places a service can offer depends on the size of rooms and the age of the children. It also depends on the number of staff present, with staff:child ratio requirements linked to the age of children. Services will declare the capacity they offer and a Core Funding value will be calculated based on that capacity.  A service’s Core Funding will then scale depending on the opening hours and weeks of the service.

The structure of Core Funding is based on the recommendations of the Expert Group on the new funding model for Early Learning and Care and School-Age Childcare. Structuring it in this way means that services will have an allocation each year that will not fluctuate in line with children's attendance.