Written answers

Tuesday, 28 November 2023

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
Link to this: Individually | In context | Oireachtas source

470. To ask the Minister for Children, Equality, Disability, Integration and Youth the minimum notice period for a crèche which decides to withdraw from the core funding scheme, and if consideration is being given to extending it given the disruption it causes to parents and children for a crèche to withdraw. [51879/23]

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

In September 2022, I launched Together for Better, the new funding model for early learning and childcare. This new funding model 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. Together for Better brings together three major programmes, 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.

Core Funding, which began in September 2022, is the new funding stream worth €259 million in year 1, €287 million year 2 and €331 million in year 3 supports this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.

The Core Funding Partner Service Funding Agreement lays out the key conditions of the scheme. The Funding Agreement states that Partner Services must provide 3 months notice before terminating the funding agreement. The exact clause of the Funding Agreement states the following: "Except as provided by the provisions of sub-clause 9.2, this Agreement may be terminated by either party by serving 3 months’ written notice to the other party."

While my Department cannot mandate providers to participate in schemes, every effort has been made to carefully design the schemes to meet the policy objectives, including achieving high levels of participation by ensuring that the schemes are attractive to providers.

I am delighted that to date, 94% - over 4,300 - providers have signed up to Core Funding in the second year of the scheme. I am committed to working with Partner Services delivering early learning and childcare for the public good.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
Link to this: Individually | In context | Oireachtas source

471. To ask the Minister for Children, Equality, Disability, Integration and Youth in view of the withdrawal of a crèche (details supplied) in Firhouse from the core funding scheme and resultant significant increases in fees for parents, the action he intends to take to ensure that affordable childcare is available in the area. [51880/23]

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

Investment in early learning and childcare is 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.

Core Funding is in operation since 15 September 2022 and has achieved very significant success in terms of the high levels of participation. With 95% participation in year 1 and to date, 94% or over 4,300 providers have signed up for Core Funding Year 2, with applications still open. There are officially more services contracted for Core Funding year 2 than there were at the peak of Core Funding year 1.

However, Early learning and care (ELC) and school aged childcare (SAC) services are provided by private enterprises, either privately owned or operated by community organisations. While service providers are contracted by the Department to provide childcare services at subsidised rates to parents, as private entities, it is at their discretion which childcare programmes they offer within their facilities.

While my Department cannot mandate providers to participate in schemes, every effort has been made to carefully design the schemes to meet the policy objectives, including achieving high levels of participation by ensuring that the schemes are attractive to providers.

The Core Funding Partner Service Funding Agreement lays out the key conditions of the scheme. The Funding Agreement states that Partner Services must provide 3 months’ notice before terminating the funding agreement. The exact clause of the Funding Agreement states the following: "Except as provided by the provisions of sub-clause 9.2, this Agreement may be terminated by either party by serving 3 months’ written notice to the other party."

It is a matter for providers to decide whether they wish to benefit from this public funding or withdraw from the Scheme and remove the benefits of the Core Funding to parents, in particular the Core Funding Fee Freeze.

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

While the service may be opting to leave Core Funding, it can still separately contract into schemes such as the National Childcare Scheme and ECCE. If the service chooses to offer the NCS, parents will be able to avail of a minimum of 1.40 an hour up to 45 hours a week, which will increase from next September to a minimum of 2.14 an hour. Increases in the NCS across the last two budgets will significantly reduce the cost of early learning and childcare for parents. From September 2024, parents availing of 45 hours a week care will be able to avail of a subsidy worth just over five thousand euro a year which will help considerably to off-set these costs. This subsidy may be higher depending on the circumstances of the family.

In addition, and as part of the design of the Building Blocks Capacity Grant Scheme, officials in my Department, in conjunction with Pobal, 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 announce details of the Building Blocks Capacity Grant Scheme in the coming weeks.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
Link to this: Individually | In context | Oireachtas source

472. To ask the Minister for Children, Equality, Disability, Integration and Youth if he intends to increase funding for the childcare sector. [51881/23]

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

Investment in early learning and childcare is at unprecedented levels, a clear demonstration from Government of the value of the sector.

In 2024, the Department of Children, Equality, Disability, Integration and Youth’s (DCEDIY) funding for the early learning and childcare sector will be €1.109 billion, an €83 million (8%) increase on last year’s funding.

The funding in 2024 provides for:

  • Further enhancements to the National Childcare Scheme, with more than 150,000 unique children to benefit from changes to the minimum universal subsidy rate and the sponsorship rate, including children in childminding settings;
  • Continuation of the Early Childhood Care and Education (ECCE) Programme that will benefit more than 103,000 children in 2024;
  • An increasing cohort of children with a disability availing of targeted AIM supports – approximately 7,000 - as well as additional funding to extend these supports beyond time spent in the ECCE programme, in term and out of term;
  • The introduction of the Equal Participation Model (EPM), whereby services will be provided with a proportionate mix of universal and targeted supports to support children and families accessing their services who are experiencing disadvantage, and;
  • Enhancements to Core Funding, with enhancements to the Scheme in year 3 to support improved affordability and accessibility for families, improved pay and conditions for the workforce and improved sustainability for providers. In particular:
  • €9.27m for 3% growth in year three of the Core Funding scheme, driven both by new services joining the sector and existing services offering more places and/or longer hours to families.
  • €3.21m increases to the allocations for admin staff/time.
  • €10.07m for non-staff overheads, ensuring that the Core Funding scheme is adequately responding to cost pressures. This allows maintenance of the fee freeze for parents and to ensure investment in NCS is fully felt by parents and not absorbed by higher fees.
A further €21.49m has been allocated towards Core Funding from September 2024. The precise allocation of this funding will be determined by data emerging from Year 2 of the scheme. It is intended that, in conjunction with the targeted measures introduced in September 2023, these measures will improve the financial standing of services receiving the lowest incomes and will pave the way for further negotiations to improve staff pay and conditions.

Comments

No comments

Log in or join to post a public comment.