Joe Carey (Clare, Fine Gael)
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244. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will respond positively to the request from an organisation (details supplied) for a subsidy of €100 per child on the early childhood care and education scheme to cover costs which are currently subsidised by the childcare owner; and if he will make a statement on the matter. [35113/22]

Roderic O'Gorman (Dublin West, Green Party)
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Given the very considerable investment in services to date, the imminent increase to funding for services and analysis done to support that increase there is no evidence to support an increase to €100 per child per week.

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.

The Expert Group engaged in a widespread programme of stakeholder consultation in order to review the existing funding model for Early Learning and Childcare and develop a new funding model. Over the course of the two year project, the extensive programme of stakeholder consultation engaged with parents, providers, the workforce, and other stakeholders, all of which is documented and publicly available.

Core Funding, which begins in September, is the new funding stream worth €221 million in full year costs to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.  Core Funding allows for an estimated 19% increase in the total cost base for the sector.  

Analysis of providers’ income and costs shows that services with the characteristics correlated with ECCE-only provision had the highest levels of income in excess of costs compared to other types of provision. Levels of income in excess of costs range from 14% to 23%, depending on the characteristic chosen. These figures compare to a sector median proportion of income in excess of cost of 4%. This was prior to increases in ECCE capitation rates and does not take account of the substantial investment in services during Covid-19 or the new Core Funding income that services will be eligible for.  

Accounting for the proposed Employment Regulation Order rates currently being considered, Department estimates show that services with ECCE and Core Funding, will receive income from the State that will cover the staff costs and leave considerable room for overheads and surplus, or for any service that may choose to raise wages above anticipated new minimum rates.   

I am committed to ensuring more stability of income for services, and that is one of the key objectives of Core Funding.   

The vast majority of services will see an increase in funding, and less than 1% of services will see no change. No service will see a decrease in funding. For any service that does experience financial difficulties, a Sustainability Fund will be put in place. This new strand of the Sustainability Fund, linked to Core Funding, will be designed to provide an extra safety net for providers.  This will be open to both private and community providers.

I would note that a review of ECCE is due to commence shortly and this review will, amongst other things, consider  whether providers are fully equipped, resourced and trained to deliver the programme effectively and sustainably.

Brendan Griffin (Kerry, Fine Gael)
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245. To ask the Minister for Children, Equality, Disability, Integration and Youth the reason that ECCE preschools (details supplied) require additional funding. [35169/22]

Roderic 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.

The Expert Group engaged in a widespread programme of stakeholder consultation in order to review the existing funding model for Early Learning and Childcare and develop a new funding model. Over the course of the two year project, the extensive programme of stakeholder consultation engaged with parents, providers, the workforce, and other stakeholders, all of which is documented and publicly available.

Core Funding, which begins in September, is the new funding stream worth €221 million in full year costs to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.  Core Funding allows for an estimated 19% increase in the total cost base for the sector.  

Analysis of providers’ income and costs shows that services with the characteristics correlated with ECCE-only provision had the highest levels of income in excess of costs compared to other types of provision. Levels of income in excess of costs range from 14% to 23%, depending on the characteristic chosen. These figures compare to a sector median proportion of income in excess of cost of 4%. This was prior to increases in ECCE capitation rates and does not take account of the substantial investment in services during Covid-19 or the new Core Funding income that services will be eligible for.  

Accounting for the proposed Employment Regulation Order rates currently being considered, Department estimates show that services with ECCE and Core Funding, will receive income from the State that will cover the staff costs and leave considerable room for overheads and surplus, or for any service that may choose to raise wages above anticipated new minimum rates.   

I am committed to ensuring more stability of income for services, and that is one of the key objectives of Core Funding.   

The vast majority of services will see an increase in funding, and less than 1% of services will see no change. No service will see a decrease in funding. For any service that does experience financial difficulties, a Sustainability Fund will be put in place. This new strand of the Sustainability Fund, linked to Core Funding, will be designed to provide an extra safety net for providers.  This will be open to both private and community providers.

I would note that a review of ECCE is due to commence shortly and this review will, amongst other things, consider  whether providers are fully equipped, resourced and trained to deliver the programme effectively and sustainably.