Roderic O'Gorman (Dublin West, Green Party)
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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 this year in grants ranging from €35,000 to €75,000 for energy upgrades and retrofit projects, which have supported services in need of upgrading, such as kitchen refurbishments, roof repairs and the replacement of flooring. In total, 151 services were awarded funding under this scheme.

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 under-supply. 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 announce details of the Building Blocks – Capacity Grant later this month.

Alan Dillon (Mayo, Fine Gael)
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1078. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide clarification regarding the recent requirement for childcare providers to furnish up-to-date financial accounts signed by a certified accountant to access core funding and to outline the rationale behind these recent changes in the process; and if he will make a statement on the matter. [48603/23]

Roderic O'Gorman (Dublin West, Green Party)
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All Partner Services that had an active Core Funding Contract during the 2022/2023 Programme Year must provide validated Financial Returns.

Core Funding payments to providers must run on a programme year, September-August, in line with the school year, the operation of the Early Learning and Care (ELC) and School-Age Childcare (SAC) sector, and the payments made to providers under the other DCEDIY schemes. Therefore, the financial returns cover the period from 1st September 2022 to 31st August 2023 and must be submitted by an accountant from a registered practice or a registered professional body (ACA, ACAA, CPA, and CIMA), on behalf of each Partner Service. My Department is not requesting audited accounts.

To facilitate these reporting requirements, my Department has worked collaboratively with an external consultant to finalise the nominal codes for the Core Funding Chart of Accounts and develop the Core Funding Financial Reporting template and associated financial management tool.

My Department acknowledges the increase in administration for providers with the introduction of new schemes such as the NCS and Core Funding. I have allocated €32.13 million for administration under Core Funding in year two, and €35.34m for the third year of the scheme.

In addition a number of targeted supports are being considered by my Department to enable Core Funding Partner Services to comply with the financial reporting requirement.

In any instances where a service is experiencing financial difficulty, they can reach out to their local City/County Childcare Committee and avail of Case Management Supports. This can include operational supports as well as financial supports through Sustainability Funding if deemed appropriate.

Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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1079. To ask the Minister for Children, Equality, Disability, Integration and Youth further to Parliamentary Question No. 80 of 2 July 2023, if he will clarify his reference to the possible introduction of a new fee structure; when he expects this new fee structure to be introduced; and if he will make a statement on the matter. [48627/23]

Roderic O'Gorman (Dublin West, Green Party)
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The approach to introducing Fee Management under Core Funding is guided by the recommendations of the Expert Group outlined in Partnership for the Public Good, and approved by Government. It ensures that the introduction of Fee Management to the sector is done in a sustainable and considered manner.

Specific recommendations on fee management include; the introduction of a fee freeze in the first instance, improvements to price comparability, and developments to the fee management system further to the assessment of cost data.

Fee management started with a requirement of providers not to increase fees on September 2021 levels. 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.

My Department has secured an allocation of €303.31m for Core Funding in budget 2024. This is an increase on the 2023 allocation of €266m. The additional allocation allows for the continued implementation of the Core Funding scheme for Early Learning and Childcare and School-Age Childcare Partner Services for the second programme year, September 2023 to August 2024 and to the end of December 2024 which is into the third programme year.?

The additional funding from September 2024 translates into a full year allocation of €331m for year 3 of Core Funding, an increase of €44m, or 15%, on the current allocation of €287m and will deliver a range of enhancements in Year 3 of the scheme to support improved affordability and accessibility for families, improved pay and conditions for the workforce and improved sustainability for providers.

My Department has allocated a further €21.49m towards Core Funding from September 2024. The precise allocation of this funding will be determined by data emerging from Year 2 of the scheme as well as the financial returns.