Patrick Costello (Dublin South Central, Green Party)
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286. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will introduce a temporary inflation payment scheme for the childcare sector, similar to the nursing home TIPS scheme (details supplied); and if he will make a statement on the matter. [59922/22]

Roderic O'Gorman (Dublin West, Green Party)
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The Government is investing significantly in the early learning and childcare sector and there is an ambitious new funding model being introduced to improve stability and sustainability for providers. There are supports, financial and otherwise, available to services who need them.

On 15th September, I launched Together for Better, the new funding model for early learning and childcare. This new funding model supports the delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families as well as stability and sustainability for providers.

Together for Better, the new funding model comprised of the Early Childhood Care and Education (ECCE) programme, including the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS) and the new Core Funding scheme, is about getting the most out of the three early learning and childcare programmes, for children, parents, providers, the workforce, and society overall, and ensuring stability and sustainability in the sector.

Core Funding has a budget of €259 million in full year costs for year 1 of the programme (September 2022-August 2023). Core Funding is designed specifically as a supply-side funding stream, paid directly to providers, related to the costs of delivery. Core Funding is based on operating hours, number of places offered by services, and the age group of children for whom the places are offered, given the staffing requirements determined by the regulatory ratios for different care categories, as well as allocations for graduate leaders in services. Structuring Core Funding primarily based on capacity means that Partner Services have an allocation each year that does not fluctuate in line with children’s attendance. Core Funding allows for substantial increases in the total cost base for the sector, related both to pay and non-pay costs, without additional costs being passed on to parents.

Core Funding contributes to services’ sustainability and significantly increases income for the overwhelming majority of services and provides greater funding stability. Already 94% of services have signed up to Core Funding and the scheme remains open for applications.

Services that are experiencing difficulty and who would like support are encouraged to contact their City/County Childcare Committee (CCC) to access case management supports. Services can be assisted on an individual basis through this route and it also allows for trends and themes across the country to be identified that can inform a more systematic response if necessary.

CCCs are receiving very small numbers of services reporting cases of financial unsustainability. Just two services have applied for sustainability funding in 2022 and their difficulties pre-date Core Funding becoming available. Any provider who is experiencing challenges is encouraged to contact their CCC.

Early learning and care services will be able to apply for the Temporary Business Energy Support Scheme (TBESS). Under TBESS, businesses engaged in early learning and childcare services who have suffered an increase of at least 50% in the average unit price of electricity and/or natural gas for the relevant billing period in 2022, as compared with the average unit price for electricity and/or gas for the corresponding reference period in 2021, will be eligible under the scheme.

Due to the level of support provided over the past years through Covid-19 funding - estimated to be in excess of €1 billion - many early learning and childcare services are in a strong financial position. Available funding included the Temporary Wage Subsidy Childcare Scheme, Covid-19 capital grants, Reopening Support Payments, Ventilation grants, Playing Outside Grants, and the Transition Fund, in addition to the very substantial funding through the Employment Wage Subsidy Scheme which covered the large majority of the wage bill for most services.

Stability and sustainability of early learning and childcare services is a top priority for Government, as demonstrated by the significant additional investment in the new funding model plus the wider whole-of-government supports for providers throughout the pandemic and now offered through TBESS. The Department, with Pobal and CCCs, will continue to engage with the sector and monitor the financial situation of early learning and childcare services, and supports are available where services face sustainability issues.

Budget 2023 allocates €1.025 billion to early learning and childcare – a clear demonstration from Government of the value of the sector. Together for Better aims to transform the sector and I am committed to working with Partner Services delivering early learning and childcare for the public good.