Roderic O'Gorman (Dublin West, Green Party)
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I propose to take Questions Nos. 549 and 550 together.

Core Funding is a payment to services designed to support quality, sustainability, and enhanced public management, with associated conditions in relation to fee control and cost transparency, incorporating funding for administration and to support the employment of graduate staff.

Services must uphold their contractual obligations regarding their fees charged to parents/guardians as laid out in the Core Funding Partner-Service Funding Agreement.

I can confirm that the service in question signed up for Core Funding during the 2022/23 programme call and is currently signed up for the 2023/24 programme call.

All services who participate in Core Funding must operate their early learning and childcare service in line with the terms and conditions outlined in the Core Funding Partner Service Funding Agreement, available here: earlyyearshive.ncs.gov.ie/how-to-guides/corefundingguides/partner-service-funding-greement/.

One of the key features of Core Funding is the introduction of a system of fee management which has been introduced to ensure that the affordability benefits from the NCS and ECCE are passed on to parents/guardians. This action is guided by the recommendations of the Expert Group, as approved by Government, to ensure that the introduction of fee management to the sector is done in a sustainable and considered manner.

Under Core Funding rules, fees must be not increased above what they were on 30 September 2021. An increased charge of any kind for an existing and unchanged Service Type will be in breach of Core Funding rules. New Partner Services that were not in existence on 30 September 2021 may set fees at their own discretion, but must adhere to those fees, and fee management rules, from when they signed their Core Funding Partner Service Funding Agreement.

Where an individual identifies a case of a potential breach of Core Funding fee rules by a service, they may seek to have this examined and a conclusion reached through the Core Funding Fee Review process. This is the appropriate mechanism to determine such cases as those the Deputy raises.

Further details on the Fee Review process can be found here: earlyyearshive.ncs.gov.ie/together-for-better-guidelines-on-fee-management.pdf .

Regarding the Core Funding fee review process, I must note that Pobal, in their role as scheme administrator, are currently assessing the specific case referred to by the Deputy, and hence I am not in a position to comment on its status or potential outcome.

I would encourage any parent with concerns or questions about fees to contact their local CCC for support and guidance or to initiate a Core Funding Fee Review. The first point of contact for parents and providers in the Core Funding fee review process is their local CCC.

Holly Cairns (Cork South West, Social Democrats)
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551. To ask the Minister for Children, Equality, Disability, Integration and Youth if his attention has been drawn to the issues facing a childcare provider (details supplied) as regards core funding not matching inflation rates; to detail what measures he will be taking to ensure childcare providers, such as this, remain in operation; and if he will make a statement on the matter. [42576/23]

Roderic O'Gorman (Dublin West, Green Party)
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Investment in early learning and childcare is at unprecedented levels with public funding for the first time reaching more than €1 billion in 2023– a clear demonstration from Government of the value of the sector.

The overwhelming majority of this funding is allocated through Together for Better, the new funding model, which comprises the ECCE programme including AIM, the NCS and Core Funding.

One of the key objectives of Core Funding is to support the sector as a whole with the introduction of direct supply-side funding, in addition to the ECCE programme and the NCS, to create a more stable and sustainable financial environment.

Core Funding in Year 1 – with an overall allocation of €259 million contributed to services’ sustainability and significantly increased income for the overwhelming majority of services while providing greater funding stability.

For Year 2 of Core Funding, the budget has increased by 11% to reach €287 million, providing a sustainable platform for investment with increases for all services.

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 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, and
• €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.

Holly Cairns (Cork South West, Social Democrats)
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552. To ask the Minister for Children, Equality, Disability, Integration and Youth the number of childcare providers that have indicated to his office or Department that they are in danger of having to close their business; and the number of childcare providers that have indicated to his office or Department that they will leave the core funding model if changes are not made, from 2022 to date, by county, in tabular form. [42577/23]

Roderic O'Gorman (Dublin West, Green Party)
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Core Funding is a payment to providers designed to meet the combined objectives of improved affordability for parents, improved sustainability and stability for services, better supports for the employment of graduate staff, and better pay and conditions for the workforce.

As of 3 October 2023, there have been 4,182 Core Funding applications received, representing more than 91% of eligible services. This uptake rate is similar to the uptake rate for the same period in year 1 of the scheme - which over the course of the programme year increased to 95%.

There may be a variety of reasons why providers do not sign up to Core Funding. From correspondence received, some providers feel that the autonomy of their business is of greater value to them than committing to offering services under the terms and conditions required and investment levels on offer, through Core Funding, the ECCE programme and the NCS. This is a legitimate perspective and this year these services can continue to operate the ECCE programme and the NCS outside of Core Funding.

Core Funding in year 2 has an annual allocation of €287 million. This represents an increase of €28 million on the year 1 allocation. The additional funding – equivalent to 11% increase - is being allocated as follows:

• €8.47m for a 3% growth in capacity
• €6.11m for non-staff overheads
• €2.2m for administrative staff time.
• €4m for graduate premiums
• €7.22m for new targeted measures aimed at improving the sustainability of sessional services.

Holly Cairns (Cork South West, Social Democrats)
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553. To ask the Minister for Children, Equality, Disability, Integration and Youth whether his Department has conducted research into the level of unmet need in the childcare sector; if so, the estimated number of children who cannot avail of childcare services due to a lack of available services; and if he will make a statement on the matter. [42578/23]

Roderic O'Gorman (Dublin West, Green Party)
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The availability of high quality early learning and childcare is a key Government priority. My Department monitors early learning and childcare capacity on an ongoing basis, with a particular focus on responding to the unmet early learning and childcare needs of families.

My Department engages in a broad range of research, evaluation and data projects to inform the policymaking process, as per First 5: a Whole-of-Government Strategy for Babies, Young Children and their Families 2019-2028, and Partnership for the Public Good: a New Funding Model for Early learning and Care and School-Age Childcare.The annual data captured by Pobal on behalf of my Department - through the Early Years Sector Profile Survey - is one important data source that allows us to monitor supply and demand. In addition to this survey data, the Department also relies on data from the register of services held by Tusla, data provided by services as part of their application for Core Funding and has also conducted several surveys with parents. Since 2020, five parent surveys have been undertaken by Ipsos MRBI on behalf of the Department.

The most recent data on availability shows that, on the whole supply for early learning and childcare is meeting demand, though there are pockets of undersupply in certain areas and for certain cohorts of children, in particular for babies and toddlers. Data from the Early Years Sector Profile, gathered in May 2023, indicates that the national vacancy rate was 14% at that time.

Early learning and childcare providers are private entities and, as such, are free to set their own policies, including admissions policies. However, the DCEDIY is taking a number of steps to address issues of undersupply.

A funding scheme was introduced last year - Core Funding – which allocates funding for providers based on the cost of delivery. Under Core Funding, providers delivering early learning and childcare for babies and toddlers attract higher levels of funding, given the higher staffing requirements determined by the regulatory ratios for these children. Though only in operation since September 2022, initial analysis shows that this new funding scheme has given rise to a significant growth in capacity – with capacity growth for cohorts (such as babies and toddlers) and in areas (such as Dublin) where there has been significant pressure on place. Additional funding secured in Budget 2023 for year two of Core Funding provides further opportunity to invest in 3% capacity growth.

In addition, and as part of the design of the Building Blocks Capacity Grant Scheme, officials in my Department have commenced a needs analysis in the Early Learning and Childcare sector. This analysis will look at undersupply by region and age category, which will ensure that my Department can fund additional capacity where it is most needed. I hope to provide more details of these two grant schemes in the coming months.

There is also a network of 30 City/County Childcare Committees (CCC) across the country, who are in a position to match children and families to services operating with vacant places. These CCCs engage proactively with services to explore possibilities for expansion among services, particularly where there is unmet need.

Holly Cairns (Cork South West, Social Democrats)
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554. To ask the Minister for Children, Equality, Disability, Integration and Youth to detail the actions he is taking to increase the number of available childcare places in the country; and what supports are available to parents who cannot find a childcare place. [42579/23]

Roderic O'Gorman (Dublin West, Green Party)
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The availability of high-quality early learning and childcare is a key Government priority. My Department monitors early learning and childcare capacity on an ongoing basis, with a particular focus on responding to the unmet early learning and childcare needs of families.

The annual data captured by Pobal on behalf of my Department - through the Early Years Sector Profile Survey - is one important data source that allows us to monitor supply and demand. My Department also relies on data provided by services as part of their application for Core Funding and has conducted several surveys with parents. Since 2020, five parent surveys have been undertaken by Ipsos MRBI on behalf of the Department. In addition, my Department monitors changes in the register of services held by Tusla on a monthly basis, the latest of which shows that there has been a net increase of 88 services this year so far.

A series of steps are being taken to address issues of undersupply.

Under the National Action Plan for Childminding, there is a commitment to open up access to the National Childcare Scheme (NCS) to parents who use childminders following the extension of regulation to childminders.

In addition, Core Funding - introduced in September 2022 - has already proven to be effective in expanding capacity, particularly in areas of undersupply and additional funding secured in Budget 2023 for year two of Core Funding provides further opportunity to invest in an additional 3% growth in capacity.

Some €69 million has been allocated over the period 2023-2025 to the early learning and childcare sector under the revised National Development Plan (NDP). This will enable significant capital investment in early learning and childcare across three pillars:

1. Building Blocks - Improvement Grant;

2. Building Blocks - Capacity Grant; and

3. Building Blocks - Innovation Grant.

Under the Building Blocks - Improvement Grant, €9 million was allocated earlier this year in grants ranging from €35,000 to €75,000 for energy upgrades and retrofit projects, which supported services in need of upgrading, such as kitchen refurbishments, roof repairs and the replacement of flooring.

Work is currently underway on the design and delivery of Pillars 2 and 3, which have a combined allocation of €20 million in 2024 and €40 million in 2025.

The Building Blocks – Capacity Grant will fund an expansion of existing services in areas of undersupply. Funding will also be provided to support the development of new services, where most needed. The Building Blocks – Innovation Grant will pilot a range of innovative initiatives such as outdoor early learning and childcare services. I hope to be in a position to provide more information on the delivery of this Building Blocks – Capacity Grant in the coming weeks.

The Deputy may also be aware that the network of 30 City/County Childcare Committees across the country are in a position to match children and families to services operating with vacant places and engage proactively with services to explore possibilities for expansion, particularly where there is unmet need.

Parents experiencing difficulty in relation to their early learning and childcare needs should contact their local City/County Childcare Committee (CCC) for assistance. Contact details for CCCs may be found on www.myccc.ie