Written answers

Thursday, 14 December 2023

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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471. To ask the Minister for Children, Equality, Disability, Integration and Youth to review the current process which is applied in determining the core funding for afterschool services, in view the fact that some of these facilities are now closing due to the costs that they have to incur in order to secure core funding; and if he will make a statement on the matter. [55924/23]

Photo of Roderic O'GormanRoderic 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.

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. The €8,150 is a full programme year amount, Partner Service that are in Core Funding for less than a full programme year will be allocated the appropriate number of weekly payments.
Budget 2024 allocated an additional €37.4m to Core Funding. This increase on the 2023 allocation will support continued implementation of the scheme for the second programme year (September 2023 to August 2024) and into the third programme year from September 2024.

With additional funding of €14.65m being made available from September 2024, this 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.

This will support the delivery of 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.

As Core Funding brings significant investment to the sector it is appropriate that there is are reporting requirements in relation to the funding, including financial reporting requirements. At my request, my officials have, in recent weeks, engaged with the Early Learning and Childcare Stakeholder Forum (ELCSF) on issues raised by providers on the financial reporting requirements under Core Funding. Following on from these recent engagements with the ELCSF, the Department have revised the Reporting Requirements for Year 1 and Year 2 of Core Funding. Year 1 and 2 Core Funding Reporting will be a transitional phase, which will include significantly reduced and more streamlined reporting requirements. Supports for providers in preparing and submitting these returns, including training supports and targeted financial supports will be available for those that may need it.

In addition, special supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City or County Childcare Committee (CCC). This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, as well as more specialised advice and support including financial support appropriate to individual circumstances.

I would encourage any service experiencing financial difficulty and who would like support to contact their City/County Childcare Committee (CCC) to access case management supports.

Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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472. To ask the Minister for Children, Equality, Disability, Integration and Youth the supports that will be put in place to assist parents in the Kerry Pike area in Cork who depended on afterschool services in view of the fact that the current operators have decided to withdraw; and if he will make a statement on the matter. [55925/23]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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The Department of Children, Equality, Disability, Integration & Youth funds 30 City/County Childcare Committees which provide support and assist families and early learning and childcare providers with early learning and childcare matters.

Cork County Childcare Committee are working to support the National School where the service was located to put in place a new school age service for parents as quickly as possible.

Cork County Childcare Committee is in regular contact with the Principal of the school and has advised that any parent queries be forwarded to Cork County Childcare Committee (phone: 021 4310500, email: info@corkcitychildcare.ie) or colleagues in Cork City Childcare Committee.

The network of City/County Childcare Committees are in a position to match children and families to services operating with vacant places. These CCCs also engage proactively with services to explore possibilities for expansion among services, particularly where there is unmet need.

Providers and parents can find the details of their local City/County Childcare Committee by visiting www.myccc.ie.

My Department is also taking a number of steps to increase supply.

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 including babies and toddlers where there has been significant pressure on places. €9.27m has been secured in Budget 2024 to invest in a further 3% capacity growth from September 2024.

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 announced further details of the Capacity Grant on Thursday 7 December.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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473. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will provide details regarding core funding being withheld from a childcare provider (details supplied); and if he will make a statement on the matter. [55934/23]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Unfortunately I cannot comment on individual cases, however, I can confirm that the service has been engaging with their local CCC and Pobal.

It is important to note that special supports are available from my Department where a service is experiencing financial difficulty or has concerns about their viability, accessed through local City or County Childcare Committee (CCC). This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, as well as more specialised advice and support including financial support appropriate to individual circumstances.

I would encourage any service experiencing financial difficulty and who would like support to contact their City/County Childcare Committee (CCC) to access case management supports.

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