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

My Department received reports on withdrawn services on the 15^thFebruary from the scheme administrator, and as of this date my Department is not aware of any services withdrawing from Core Funding in the Dublin South West constituency to increase their fees.

Investment in early learning and childcare is at unprecedented levels with public funding exceeding €1.1 billion in 2023 for early learning and childcare – 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 Early Childhood Care and Education (ECCE programme), including the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS), and Core Funding, with a fourth programme, the Equal Participation Model in development.

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.

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.

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 withdraw from the Core Funding scheme, the significant financial supports it provides to providers and the certainty it provides to parents through the associated fee freeze.

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, financial support for partner services, as well as more specialised advice and 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.

Additionally, I would encourage any parent with concerns or questions about fees to contact their local CCC for support and guidance. Contact details for the CCCs can be found at: myccc.ie/

Roderic 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.

Participation in Core Funding is optional but it remains open to all registered providers subject to their agreement to the terms and conditions of the funding.

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

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.

In Core Funding Programme Year 1, ONE Service, crèche(s) has withdrawn from the core funding scheme nationwide.

In Core Funding Programme Year 2, THREE Services, crèches have withdrawn from the core funding scheme nationwide.

The above figures account for services who had an active contract during the relevant programme call (i.e. between 14^thSeptember 2022 – 31^stAugust 2023 for year 1, 1^stSeptember 2023 – present for year 2) and have an application status of withdrawn – meaning they withdrew from the scheme and remained open.

It is a matter for providers to decide whether they wish to withdraw from the Core Funding scheme, the significant financial supports it provides to providers and the certainty it provides to parents through the associated fee freeze.”

However, I am confident that given the level of investment and associated supports, services should not need to take this step.

There is extensive engagement with provider representatives and providers of all types, via various specific consultation activities and through various fora, including through the Early Learning and Childcare Stakeholder Forum.

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, financial support for Partner Services, as well as more specialised advice and support appropriate to individual circumstances.

I strongly encourage services to avail of these case management supports as an alternative to withdrawing from Core Funding.