Seán Canney (Galway East, Independent)
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697. To ask the Minister for Children, Equality, Disability, Integration and Youth his views on the significant problems that currently exist in the smaller ECCE-only sessional preschools and the fact that this will be exacerbated by the new funding model; his further views on whether these small independent sessional services, the backbone of the early learning sector nationwide, will be heavily impacted by rising input costs, challenges in recruitment, high waiting lists, Government interference in terms of competition and no increase in the standard capitation level since 2018; his plans to address these significant problems; and if he will make a statement on the matter. [14938/22]

Roderic O'Gorman (Dublin West, Green Party)
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ECCE is a universal programme which provides 2 years of free pre-school to children in the eligible age range of 2 years and 8 months to 5 years and 6 months.  ECCE is not mandatory but has a very high take up rate with 95% of children in the eligible age range attending ECCE services. 

ECCE is provided by private early learning and care service providers under funding agreements  with my Department. There are currently almost 4, 000 providers contracted to provide ECCE throughout the country.

 Under the new funding stream, in return for a commitment that fees to parents will not increase, providers will be supported in meeting their operating costs, including increased costs related to improved quality measures which includes staff costs. Core Funding will also contribute to cost increases related to non-staff costs (for example, utilities, rent).

Core Funding is equivalent to an increase of at least 14% on the standard capitation for ECCE. At a minimum, for every ECCE child €78.75 per week will be available from ECCE and Core Funding, compared to €69 in ECCE standard capitation only. Because Core Funding is paid in respect of places rather than children, effectively this could mean a greater ‘per child’ marginal increase if the service has unfilled capacity. For example, with an ECCE occupancy of 9 children per staff member, Core Funding and ECCE together will be equivalent to weekly per child capitation of €80.92.

Core Funding replaces the ECCE Higher Capitation payment which is pays a higher capitation rate of €80.25 for all children attending ECCE classes with a graduate ECCE room lead.  Core Funding includes a new a graduate premium which will be to be paid to services with graduate room leads for all  early learning and care age groups.   

A small number of services, estimated to be approximately 50 in total or 1% of all providers, would receive less under Core Funding than they  received in Higher Capitation payments. For this small number of providers, I have issued a funding guarantee whereby, under Core Funding providers will receive the same level of funding as they received from ECCE Higher Capitation, assuming the numbers of children, graduate staff and type of service offered remains the same in the 2022/23 programme year as in 2021/22.  Services for whom the Funding Guarantee will apply are higher capitation ECCE services with large groups and high occupancy that are currently in receipt of the highest levels of public funding relative to the staffing levels required for operating those types of services. 

With regard to staffing difficulties in the ELC sector, I acknowledge that early learning and care and school-age childcare services can experience staffing and recruitment difficulties and I have committed to supporting service providers in their efforts in recruiting qualified staff.

As the Deputy is aware, the State is not the employer, and my Department does not set wage levels nor determine working conditions for staff in the sector. However, I am doing all that is in my power to address the issue.

On 7 December 2021, I launched Nurturing Skills: The Workforce Plan for Early Learning and Care and School-Age Childcare, 2022-2028, which aims to strengthen the ongoing process of professionalisation for those working in early learning and care and school-age childcare. There is no differentiation in Nurturing Skills for the different types of service providers.  The plan aims to make improvements for staff in all services, full time or sessional.  In additional, a Joint Labour Committee is currently meeting to set pay scales for the sector which, if agreed, will be set out in an Employment Regulation Order.  Together these initiatives will improve staff retention in the sector.

Finally, my Department has recently commenced a review of the ECCE programme to assess the value of the programme and to identify potential improvements.  ECCE providers, parents, children and stakeholders will be invited to contribute to the review later this year.