Written answers

Thursday, 24 October 2024

Department of Children, Equality, Disability, Integration and Youth

Early Childhood Care and Education

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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308. To ask the Minister for Children, Equality, Disability, Integration and Youth the extent to which he continues to prioritise funding the childcare sector with a view to continued improvements; and if he will make a statement on the matter. [43872/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Investment in Early Learning and Care (ELC) and School Aged Childcare (SAC) is at unprecedented high levels. This investment provides for improved affordability for parents, capacity growth within the sector and provides additional supports for children and families who are experiencing disadvantage. Budget 2025 continues to augment this investment with funding amounting to €1.37 billion provided. This is a further investment of €266m, or 24% on 2024. This builds on the achievement of a €1 billion budget allocation in 2023, 5 years ahead of the 2028 target outlined in First 5: A Whole-of-Government Strategy for Babies, Young Children and their Families 2019-2028.

Budget 2025 will provide:

  • A total of 201,246 children have benefitted from a National Childcare Scheme (NCS) subsidy so far in 2024. The number of children benefitting from subsidies has increased by over 95,000 when compared to the same period in 2022. Budget 2025 will provide an additional €160.69 million or 43% increase on the 2024 allocation, which will continue to reduce the out-of-pocket costs for families availing of the Scheme. All families accessing registered ELC will benefit from the full year impacts of the increased minimum hourly universal NCS subsidy of €2.14, which was introduced in September 2024.
  • €269.3 million for the continuation of the ECCE programme which will benefit more than 107,000 children in 2025 – a €13.1 million increase on the 2024 allocation.
  • An additional €23.4 million for the Access and Inclusion Model (AIM) to provide for an increasing cohort of c.7,800 children with a disability availing of AIM supports as well as the full year cost of the expansion of targeted supports beyond time spent in the ECCE programme, in term and out of term, which was introduced in Budget 2024.
  • €8.7 million in additional funding to support the continued roll-out of Equal Start and an extra €4 million to fund Equal Start new development measures for 2025. These include an Additional Nutrition Programme to provide additional meals in targeted settings beyond minimum regulatory requirements.
  • Over €350m of the 2025 budget allocation has been provided for Core Funding, an increase of almost €50m on the 2024 investment in the scheme, to:
    • support continued implementation of the scheme for the third programme year and also support further increases into the fourth programme year from September 2025.
    • provide a further €15m from September (or €45m in a full programme year) specifically to support employers to meet the costs of further increases to the minimum rates of pay in the sector.
    • Combined, and contingent on the third successive Employment Regulations Orders, the Core Funding allocation will exceed €390m in year 4, approximately 20% higher than in year 3.
In September 2022, I introduced Core Funding to support the sector as a whole. This is in addition to the ECCE programme and the NCS, to create a more stable and sustainable financial environment.

Core Funding delivers:
  • Affordability for parents/guardians: Core Funding introduced Fee Management to the sector and ensures that the National Childcare Scheme (NCS) and Early Childhood Care and Education (ECCE) programme are offered to all eligible children.
  • Quality in Services: Core Funding supports better terms and conditions for staff, as well as supporting graduate leadership in services – both of which are proven to support delivery of quality provision for children.
  • Sustainability for providers: Core Funding has substantially increased funding to the ELC sector and is paid on the basis of capacity and not child attendance providing stability of income. Since its introduction in September 2022, Core Funding has made €546 million in funding available to early learning and childcare services.
This additional funding will support an increase in more Partner Services; and also more staff working in the sector, more rooms and places, and more graduate lead educators and managers.

By providing additional funding for capacity in this way, year 3 of Core Funding will help Partner Services expand their businesses, which will lead to greater accessibility for parents and greater sustainability for services. Tusla data shows that ELC closures fell to a 5 year low following the introduction of Core Funding, while the overall number of ELC and stand-alone SAC services is now increasing.

In year 2 the programme call resulted in 4275 Partner Services enrolled in Core Funding, and in year 3 this increased by 2.7% to 4390 Partner Services.

Some €89 million has been allocated over the period 2023-2026 to the early learning and childcare sector under the revised National Development Plan (NDP).

€30m has been allocated to my Department in 2025, an increase of €10m or 50% on the allocation in 2024 of €20m.

Some €25m will be set aside for the Building Blocks Extension Grant Scheme. The Extension scheme will fund existing ELC services to undertake large scale extensions to their premises to provide additional capacity for full day places for 1-3 year olds. The scheme will also fund community services to build or purchase new premises. It is anticipated that the Extension scheme will deliver thousands of additional places in the coming years.

Separate to the €25m for Building Blocks, under Equal Start, capital funding will support small equipment purchases through capital measures to support the roll-out of the additional nutrition programme. Capital funding will also be made available for essential/emergency capital works in ELC and SAC settings that are Core Funding Partner Services.

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