Written answers

Tuesday, 28 June 2022

Department of Children, Equality, Disability, Integration and Youth

Departmental Funding

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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668. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will advise in relation to the situation regarding the Transition Fund (details supplied); and if he will make a statement on the matter. [34362/22]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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In December 2021, Government adopted the 25 recommendations contained in an Expert Group report, Partnership for the Public Good: A New Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC).

The new funding model will support the delivery of ELC and SAC for the public good, for quality and affordability for children, parents and families. To achieve this, there is a need for greater State investment and greater public management of provision.

One of my top priorities in Government is to improve affordability of Early Learning and Care and School-Age Childcare for parents. The package of measures I announced in Budget 2022 is designed to ensure that fees to parents do not increase and that the full affordability benefits of the National Childcare Scheme and the Early Childhood Care and Education programme are felt without being absorbed in fee increases.

The Transition Fund starts this process and will be in place between May and August 2022. This is a temporary, once-off scheme, to support providers transition from the end of the Employment Wage Subsidy Scheme (EWSS) to the new Core Funding Scheme in September.

The main contractual requirement for the Transition Fund is that fees remain at or below the Registered Fees List that were in place on 30th September 2021 for the period of the scheme. This requirement will apply to all services who are in contract for the Transition Fund. If, between May and August, a service has not imposed any increases to Registered Fees List that was in place on 30th September 2021 then they are compliant with the terms and conditions of the Transition Fund. 

Participation in the Transition Fund is optional but I am very pleased that approximately 94% of providers have now signed-up and thereby have agreed to maintain their fees at or below September 2021 rates.

Throughout the pandemic period, I was very concerned to hear of a small number of providers proposing to increase charges to parents at a time when the Government supported early learning and childcare providers very significantly. Fee increases that did occur during this period are unfortunate.

The name of the service to which you refer has not been shared so I am unable to comment on specifics. I would draw your attention to the Transition Fund list which compiles the over 4,000 services/providers participating in the scheme, available here: first5fundingmodel.gov.ie/core-funding/   

Following on from the Transition Fund, Core Funding will begin from September.  Fee management for year one of Core Funding will start with the requirement for providers to maintain fees at or below September 2021 levels, and the approach will be further developed over time. I am confident that the fee management system, in tandem with developments to the National Childcare Scheme, will together deliver significantly improved affordability for parents.

I would encourage any parent or provider with questions regarding the Transition Fund or fee management to contact their local City/County Childcare Committee for support and guidance at: myccc.ie/where-is-my-nearest-ccc.

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