Brendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

399. To ask the Minister for Children, Equality, Disability, Integration and Youth if annual rates of core funding for the childcare sector will increase in line with inflation; and if he will make a statement on the matter. [60551/22]

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 399 and 401 together.

I take it the Deputy is referring to the Core Funding initiative introduced by my Department, which supports early learning and childcare providers. In terms of specific supports for community development organisations, that matter would be more appropriately addressed by my colleague the Minister for Rural and Community Development.

On 15th September, I launched Together for Better, the new funding model for early learning and childcare. Together for Better is 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. Together for Better 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.

The original allocation for year 1 of Core Funding in Budget 2022 was €207 million. I grew this to €221 million in early 2022 in response to cost pressures, and increased that again to €259 million in September 2022 based on significant capacity growth in the sector.

The significant allocation on offer through Core Funding in year 1 is conditional on a fee freeze, support for new wage rates through the EROs and financial and operational transparency. These are central objectives of Core Funding - ensuring the substantial additional investment in the sector delivers for parents and for workers and allows the State to be assured that its funding is being spent appropriately.

Core Funding is a very significant new injection of funding into the sector and I have secured an increase of €28 million in the Core Funding envelope for year two of operation (September 2023-August 2024). Approximately €4 million of the €28 million will be used to remove the experience requirement on both graduate premiums under Core Funding. The remaining €24 million will be used for further developments and enhancements to the scheme, the precise allocation of which will be determined by evidence and analysis emerging from year one of the operation of the scheme and must be evidence based.

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.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

400. To ask the Minister for Children, Equality, Disability, Integration and Youth if a community preschool childcare facility (details supplied) can be included in the pilot hot meals to children in early learning and childcare settings scheme. [60609/22]

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

Officials will consider the Ballymore Community Childcare service in the Hot Meals pilot if they meet the criteria for inclusion in the initiative.  The criteria are: 

- serves a community suffering from disadvantage

- offers a part-time or sessional service

- doesn't currently offer hot meals

My officials will make contact with the service, discuss the initiative and invite them to take part.

As you know this pilot initiative will inform wider actions on supporting all young children and families to fully participate in early learning and childcare.