Brendan Smith (Cavan-Monaghan, Fianna Fail)
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248. To ask the Minister for Children, Equality, Disability, Integration and Youth the measures he is taking to address the urgent demand for childcare through both the private providers and community providers; if these providers can expect adequate budget allocations later this year to sustain their services; and if he will make a statement on the matter. [30094/24]

Roderic O'Gorman (Dublin West, Green Party)
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Improving access to quality and affordable early learning and childcare is a key priority of Government. My Department has in place a range of supports and funding schemes to support the delivery of early learning and childcare places and services are independently operated by community not-for-profit and private for-profit providers.

The level of capacity in the sector has risen substantially year-on-year between 2022 and 2023 as evidenced by survey data collected by Pobal, by administrative data from Core Funding and the National Childcare Scheme and registration data collected by Tusla.

However, there is also evidence that demand for places is increasing and, for certain cohorts and in certain areas, outstripping supply. This is partly driven by the significant improvements in affordability that have been achieved in recent years and I acknowledge that some families experience challenges in accessing places, particularly for younger children.

The design of funding schemes and the increased allocation of resources to the sector is supporting ongoing expansion of capacity, and in particular for young children. The rates of both the National Childcare Scheme and Core Funding are weighted towards funding for young children given the higher staff costs that are required to operate at lower ratios.

Additionally, capital funding has been allocated to the early learning and childcare sector under the revised National Development Plan. This will enable significant investment in further expansion of capacity. The Building Blocks Grant schemes are focused on increasing the number of full and part-time places available for 1-3 year olds. Appraisal of applications for these scheme considers the supply and demand in the area around the proposed projects and seeks to prioritise funding for areas with the biggest supply/demand mismatch.

Last week, I was pleased to announce details of the Building Blocks Extension Grant scheme. Under this scheme, funding may be provided to the following range of projects:

• Extensions to existing premises
• Installation of modular buildings or buildings built using modern methods of construction
• Purchase of early learning and childcare premises (for community services only)
• Purchase of premises that could be easily adapted for use as early learning and childcare premises (for community services only)
• Construction of building to house a new early learning and childcare service on ‘greenfield’ or ‘brownfield’ site (for community services only)

• Affordability
• Quality
• Inclusion
• Sustainability

• €249 million will be available for the Base Rate
• €55.8 million will be available for the Graduate Premiums
• €9 million will be available for targeted measures
• €17.5 million will be available for growth in the sector

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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249. To ask the Minister for Children, Equality, Disability, Integration and Youth the work undertaken by his Department to decrease the costs of childcare; the number of children and/or families that have been positively impacted by the funding for childcare since 27 June 2020; how he plans to include more children in these schemes; and if he will make a statement on the matter. [30095/24]

Roderic O'Gorman (Dublin West, Green Party)
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In September 2022, I launched Together for Better, the new funding model for early learning and childcare (ELC).

This new funding model supports the delivery of ELC for the public good, to provide affordability, accessibility and quality for children and families as well as sustainability for providers.

Through Together for Better, my Department provides a number of schemes which offset the cost of ELC to families, these are Core Funding, the Early Childhood and Education (ECCE) programme, the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS), and the newly announced Equal Start.

The ECCE programme, which provides two years of preschool without charge, enjoys participation rates of 96% each year. Over 70% of families on low income report that they would not be able to send their child to preschool without this programme.

The National Childcare Scheme (NCS) complements the ECCE programme, providing subsidies – both universal and targeted - to reduce the costs to parents for children to participate in ELC.

Since January 2023 - with the increase in the minimum NCS subsidy to €1.40 per hour – out of pocket costs to families have fallen by 25% on average. From this September, the minimum subsidy will increase again to €2.14 per hour – and the cumulative reduction in out of pocket cost is estimated to reach 50% on average where services’ fees remain at current levels.

As of 5 June 2024, the total number of children who have benefited from the NCS subsidy since 27 June 2020 is 223,395.

The total number of unique children across all years is lower than the sum of the totals for each year because children that availed of NCS in more than one year are counted only once in the grand total.

The success of the National Childcare Scheme (NCS) in meeting family’s needs is evidenced through the increased level of participation in the Scheme; record numbers of children and their families are now benefiting from the NCS.

To increase awareness of the National Childcare Scheme, my Department has promoted the Scheme through ; online and in person promotion campaigns; and through the national network of City and County Childcare Committees.

Finally, Core Funding has ensured 95% of ELC services maintained a fee freeze for the past 2 years. As a result, the NCS delivered real change for parents rather than being absorbed by service applied fee increases. Core Funding in year 3 will introduce a controlled fee increase approval process. Partner Services with fees below a certain threshold can apply to increase their fees up to an approved level. To balance the needs of Parents/Guardians and Partner Services, there will be an assessment to ensure there is a demonstrable need for a fee increase before approval is granted. Where approval occurs, NCS subsidies will ensure that no increase in out-of-pocket costs will be felt by parents/guardians.

Core Funding is a grant to ELC providers towards their operating costs. It aims to improve:

• Affordability for parents through ensuring no unapproved increases in fees and offering NCS and ECCE to all eligible children;
• quality in services, including through better terms and conditions for staff and supporting graduate leadership in services; and
• sustainability for providers through substantially increased funding to the sector, paid on a consistent and equitable basis.

• €249 million will be available for the Base Rate
• €55.8 million will be available for the Graduate Premiums
• €9 million will be available for targeted measures
• €17.5 million will be available for growth in the sector

• A new common fee structure
• A fee increase process for certain services
• A fee cap