Roderic O'Gorman (Dublin West, Green Party)
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Core Funding – a new funding scheme paid directly to providers – in its first year resulted in €259 million in public funding received by the sector. This year, it will increase by 11% to reach €287 million.

Core Funding provides supply-side funding towards the cost of service provision but requires enhanced public management and oversight, for example greater financial transparency. Specifically, as part of services’ Core Funding contract, services are required to furnish my Department with validated accounts.

A Chart of Accounts (COA) and a financial reporting template has been developed to assist with the process of services providing detailed, transparent, validated financial data as part of their contractual obligations under Core Funding.

The data collected through the financial returns will allow for further analysis of provider income and costs, adding to the evidence base upon which policy developments are based.

Core Funding contributes to sustainability by significantly increasing income of services and providing greater funding stability. In year 1, 99% of services participating in Core Funding increased funding, and 1% of services (61) received top-up payments under the Funding Guarantee.

For year 2 of Core Funding, the budget has increased by 11% to reach €287 million. The additional funding for Core Funding Year 2 is being allocated as follows:

€8.47 million towards funding the natural growth of the sector,

€6.11 million towards non-staff overheads, to support Partner Services with increases to non-staff costs, while maintaining the fee management system,

€2.2 million towards administrative staff time,

€4 million towards the removal the year 3 requirement for the Graduates Premiums, underpinned by EROs,

€7.22 million for new targeted measures which are aimed at improving the sustainability of smaller and sessional services. These include a flat rate allocation of €4,075 for all sessional-only services, which will benefit approximately 1,700 services delivering ECCE, and a minimum base rate allocation of €8,150, which will benefit small, part time and school-age services.

I do not want any services to be faced with financial sustainability issues and I am fully committed to working with any such service to support them in delivering early learning and childcare for the public good. There are supports, financial and otherwise, available to services who need them.

Sustainability funding is available to services participating in Core Funding, community and private, who are experiencing financial difficulty.

I strongly encourage services which are experiencing financial difficulty, and would like support to contact their City/County Childcare Committee (CCC) to access case management supports. Services can be assisted on an individual basis through this route.