Written answers

Tuesday, 22 October 2024

Department of Children, Equality, Disability, Integration and Youth

Early Childhood Care and Education

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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659. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €2.50 per hour; and if he will make a statement on the matter. [43277/24]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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660. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €3 per hour; and if he will make a statement on the matter. [43278/24]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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661. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €3.20 per hour; and if he will make a statement on the matter. [43279/24]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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662. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €3.50/hour; and if he will make a statement on the matter. [43280/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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I propose to take Questions Nos. 659 to 662, inclusive, together.

The Deputy has separately requested a breakdown of the full-year cost of increasing the National Childcare Scheme (NCS) subsidy to €2.50/hour, €3.00/hour, €3.20/hour and €3.50/hour. Due to the similarity of these PQs it is proposed that they be taken together.

There are two types of subsidies available under the NCS.

  • A universal subsidy which is available to all families with children under 15 years old. This subsidy is not means tested and provides €2.14 per hour towards the cost of a registered childcare place for a maximum of 45 hours per week.
  • Income Assessed Subsidies are available to families with children aged between 24 weeks and 15 years. This subsidy is means tested and will be calculated based on individual circumstances. The rate will vary depending on the level of family income, child age and educational stage, and the number of children in a family.
It is assumed that the Deputy is requesting increases to the NCS universal subsidy as they income assessed subsidy is not a fixed hourly amount.

Officials in my Department used the ESRI SWITCH model to estimate the quantum of each change and then applied them to the Departments baseline cost of the NCS. The results are given in the below table:
Full year cost of change
Baseline (€2.14) 0
€2.50 €58.52m
€3.00 €137.17m
€3.20 €168.40m
€3.50 €215.11m


The figures above are calculated using estimates, and as such a number of caveats apply. These costing are on the basis of a static system; that is, the model assumes that the level of usage of eligible ELC does not increase or decrease but remains static. Any changes to subsidies may create a change in behaviour of families, for example, return to/increased labour force participation and use of formal ELC for the first time.

In addition, a number of enhancements were made to the NCS in September 2024: 1. Increase in universal subsidy from €1.40 to €2.14.

2. Extension of NCS to families availing of childminders

3. Increase in NCS sponsor subsidy to €5.30 per hour for all children over the age of 1.

The estimates above factor in these changes, however, the impact of these changes are yet to be determined and carry a risk of altering the above costings.

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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663. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing ECCE capitation by 10%; and if he will make a statement on the matter. [43282/24]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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664. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing ECCE capitation by 15%; and if he will make a statement on the matter. [43283/24]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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665. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing ECCE capitation by 20%; and if he will make a statement on the matter. [43284/24]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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666. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing ECCE capitation by 25%; and if he will make a statement on the matter. [43285/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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I propose to take Questions Nos. 663 to 666, inclusive, together.

The Deputy has separately requested a breakdown the full-year cost of increasing ECCE capitation by 10%, 15%, 20% and 25%. Due to the similarity of these PQs it is proposed that they should be taken together.

My Department funds private ELC service providers to provide the ECCE programme at a standard rate of €69 per week per child attending the ECCE programme.

In calculating the full year cost of increasing ECCE capitation by a certain percentage, the total budget allocation for the ECCE programme for 2025 (€269.25 million) was used. The percentage increase was then applied to the total Budget allocation to generate an additional cost of the proposed change.

The results are given in the below table:

ECCE capitation per child per week Full year cost of change
Baseline €69 0
10% Increase €75.9 €26.93m
15% Increase €79.35 €40.39m
20% Increase €82.8 €53.85m
25% Increase €86.25 €67.31m

It is important to note that these estimates are based on a static system and do not account for any potential changes in behaviour that would result from these changes.

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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667. To ask the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the money allocated to core funding in 2022, 2023, 2024 and 2025; and if he will make a statement on the matter. [43286/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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The introduction of Core Funding in September 2022 brought a significant increase in investment for the sector.

In 2022 Core Funding had an outturn of €80.4 million. Core Funding was introduced in September 2022. This includes the two weeks of Interim Funding which was paid to the sector. This Interim funding was introduced to support providers to transition from the EWSS to the new Core Funding stream.

In 2023 Core Funding had an outturn of €257.06 million, reflecting the first full year of expenditure under the scheme and increases to the scheme from September 2023. €4 million of the original allocation of €259 million was to remove the 3 year experience rule for graduate premiums contingent on updated Employment Regulation Orders reflecting this change. Due to delays in the establishment of these EROs by the Joint Labour Committee the full €4 million allocated for this purpose was not released.

In 2024 €303.3 million was allocated to Core Funding. This includes increases to the rates within the scheme which took effect in September 2023. These increases support the maintenance of the fee freeze, increased income for all services and up to 6% capacity growth.

In 2025 a minimum of €338.2 million has been allocated to Core Funding. This includes increases to take effect from September 2025 that will support the delivery of a range of enhancements in Year 4 of the scheme, including increases in capacity of 3.5%, increased support for services with the costs of administration and the maintenance of fee management measures.

I secured a further €15 million in Budget 2025 specifically to support employers to meet the costs of further increases to the minimum rates of pay in the sector from September 2025. This €15 million translates into full year costs of €45 million for programme year 2025/2026 (September 2025 to August 2026). This allocation is conditional on EROs being negotiated by the independent Early Years Services Joint Labour Committee.

Combined, and contingent on the third successive Employment Regulation Orders, the Core Funding allocation will exceed €350 million in 2025.

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