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

I am very proud of the achievements of the new funding model, Together for Better, in its first year of operation since last September.

Core Funding, the new scheme worth €259 million in year 1 intentionally introduced Fee Management in a sustainable and considered manner, guided by the recommendations of an Expert Group and approved by Government. In return for providers receiving grants to support their operations, Fee Management means that fees are frozen at 2021 rates so parents’ costs do not increase. This Fee Management mechanism means that increases to National Childcare Scheme subsidies are fully felt by parents.

With 95% of services signed up for Core Funding in year 1, these benefits for parents, providers, staff and children are felt widely across the sector.

For 2023, I have grown the Core Funding budget again by 11% to reach €287 million, providing a sustainable platform for investment with increases for all services. Increasing the Core Funding budget while maintaining the same level of conditions on fees, will help embed the new Fee Management system in the sector and prepare the sector for the increased levels of fee management in future years.

For the vast majority of services, the increased income through Core Funding is above the potential income services would have received through higher fees, based on trends in individual services fees over a number of years. It is reasonable and justifiable therefore that on receipt of the Core Funding grant, Partner Services must agree not to increase their fees given the level of funding available and the supply side nature of it. It is appropriate that the higher levels of public funding are accompanied by higher levels of public management.

The approach for fee management in future years will be guided by the Expert Group recommendations and may include the introduction of a common national provider fee structure and rates, and transitional arrangements such as where all fee rates would have to fall within a specified percentage tolerance range around a given rate. This work will be progressed in the coming months to ensure that data from the financial returns can be analysed without delay.

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. Partner Services set their own fees policies based on their individual operating model, however Partner Services can be assisted through the case management route to ensure their services remain sustainable under Together for Better.

Investment in early learning and childcare is already at unprecedented levels with public funding for the first time reaching more than €1 billion in 2023 for early learning and childcare – a clear demonstration from Government of the value of the sector.

I am committed to continuing to grow this investment and making sure it delivers early learning and childcare for the public good, and I deem it entirely appropriate that the higher levels of public funding are accompanied by higher levels of public management of this funding.

Further guidance on Fee Management and the Core Funding Fee Review Process can be found here: first5fundingmodel.gov.ie/wp-content/uploads/2023/05/Together-for-Better-Guidelines-on-Fee-Management-7.pdf