Written answers

Wednesday, 5 February 2025

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
Link to this: Individually | In context | Oireachtas source

1002. To ask the Minister for Children, Equality, Disability, Integration and Youth the steps that will be taken to replace a cut in service hours in a childcare facility (details supplied) particularly in a community where there is already a shortage of affordable childcare. [3338/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I understand the service in question has had initial engagement with their local CCC.

In addition to the Core Funding grant for early learning and childcare providers towards operating costs, which the service avails of, Case Management Supports are available from my Department for any service experiencing financial difficulty or has concerns about their viability.

This support can take the form of assisting services with interpreting analysis of staff ratios and cash flow, financial support for services, as well as more specialised advice and support appropriate to individual circumstances.

This service will soon meet with their local CCC and with Pobal to discuss the various supports available under Case Management.

I have also been informed that the children who attend the afternoon session in the service in question can be accommodated in this service’s sister service, which is located within 1km of the service and that other alternative arrangements also being explored.

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
Link to this: Individually | In context | Oireachtas source

1003. To ask the Minister for Children, Equality, Disability, Integration and Youth if she is aware of any ongoing challenges faced by early years educators and childcare providers regarding funding or operational support; and the way she plans to address these issues moving forward. [3339/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The introduction of Core Funding in 2022 brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, of which €210.8 million was entirely new funding. This funding, which increased by 11% (to €287 million) in year 2, increased by another 15% in year 3 (to €331 million).

This significant further investment for the third programme year allowed for increased measures including;

  • The base rates for all age groups increased, with larger increases in funding for places offered to children under the age of three.
  • The flat rate for services registered on the Tusla Early Years Register as sessional only, increased from €4,075 to €5,000.
  • The minimum base rate allocation increased from €8,150 to €14,000. This is the minimum amount of funding a centre-based service (not childminders) will receive through their base rate and ensures a minimum guaranteed income for services.
  • The maximum base rate allocation decreased from €600,000 to €500,000.
For year 3 of Core Funding, the Department introduced a new Fee Increase Assessment and Approval Process whereby a Partner Service meeting certain criteria could apply to increase their fees up to an approved level. This process closed for applications on 29 November 2024. The Department also introduced a cap on fees for services joining Core Funding for the first time this year. A fee cap will apply to all Partner Services from September 2025.

These new developments are in line with Recommendations 21 and 22 in Partnership for the Public Good.

Further increases in year four of the Scheme, announced in Budget 2025, which will see the total allocation increase to over €390 million. Further details on the fourth programme year will be announced to services in advance of the application opening.

On 19 September 2023, plans to develop an Action Plan for Administrative and Regulatory Simplification for the Early Learning and Childcare Sector were announced, supported by a Working Group comprising representatives from the Department, Pobal and the City / County Childcare Committees.

Indecon Economic Consultants are engaged to review the end-to-end processes linked to publicly funded early learning and childcare schemes/programmes. As part of this review Indecon have met with and presented to an Advisory Group comprising providers, educator/practitioner and parent representatives, on their approach. The review will offer an insight into administrative and regulatory requirements for the sector and the balance of same while continuing to ensure best governance and quality is delivered.

The review of end-to-end processes is informed in part by regional consultation events which commenced in late May 2024, and concluded in early June over a mix of in-person and online sessions to ensure accessibility and attendance for over 400 parental, provider, representative bodies and other key sectoral stakeholders. Given the sheer volume of written feedback received in person at these consultation sessions, and submissions received after the sessions from CSI, SIPTU and a large combined volume from the CCC, the review is expected to conclude in Q1 2025.

The Action Plan which will outline short-term, medium-term, and long term administrative and regulatory simplification measures, will be finalised and published after the conclusion of the review.

Photo of Paul MurphyPaul Murphy (Dublin South West, Solidarity)
Link to this: Individually | In context | Oireachtas source

1004. To ask the Minister for Children, Equality, Disability, Integration and Youth her plans, if any, to address the shortage of childcare places in Dublin south west, which according to a recent report has the worst shortage of childcare places nationally (details supplied); and if she will make a statement on the matter. [3436/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My Department employs a range of approaches to identify and address shortages of early learning and childcare places, bearing in mind the wide range of types of early learning and childcare provision offered by services and required by families.

Last year, a Supply Management Unit within the Early Learning and Care and School Age Childcare Division was established, and the Programme for Government articulates an intention that the unit be resourced and transformed into a Forward Planning and Delivery Unit to identify areas of need, forecast demand and deliver public supply within the childcare sector where required.

The development of a forward planning model is currently underway utilising the skills of statisticians on secondment from the Central Statistics Office, those experienced in the field of early learning and childcare and the expertise of a GIS mapper working with the Department. The model will seek to identify the nature and volume of different types of early learning and childcare places across the country, whether or not those places are occupied and how that aligns with the numbers of children in the corresponding age cohorts at local area level.

It is important to note that demand for early learning and childcare beyond sessional pre-school provision is highly elastic and shaped very substantially by families' individual composition, circumstances and preferences; employment patterns and income; and the price and availability of services.

My Department collects extensive data on supply through both survey and administrative data. A range of data sources show that the level of capacity in the sector has risen substantially in recent years. 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. Published data on capacity broken down at county level is available at .

The Building Blocks Extension Grant Scheme was launched on the 4th November 2024. Applications for this scheme have now closed and an appraisal process has begun.

The primary focus of the Extension Grant Scheme is to increase capacity in the 1–3-year-old, pre-ECCE, age range for full day care. Appraisal of applications for this scheme will consider the supply and demand in the area around the proposed projects and seeks to prioritise funding for areas with the biggest supply/demand mismatch.

€25m will be made available this year to deliver additional capacity under the Scheme and I expect to announce the outcome of the application process in March.

Photo of James GeogheganJames Geoghegan (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

1005. To ask the Minister for Children, Equality, Disability, Integration and Youth further to Parliamentary Question No. 1278 of 22 January 2025, in the context of the Programme for Government commitment to review and increase core funding for childcare services, whether she can detail the actions that will be taken to entice childcare providers who have exited core funding back into core funding thereby ensuring the fee cap is maintained for the benefit of all parents; if she will provide a specific dedicated forum for engagement with childcare providers who have exited core funding; and if she will make a statement on the matter. [3463/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The introduction of Core Funding in 2022 brought a significant increase in investment for the sector, with €259 million of funding paid directly to services in year 1 of the scheme, of which €210.8 million was entirely new funding. This funding, which increased by 11% (to €287 million) in year 2, has increased again by another 15% in year 3 (to €331 million).

This significant further investment for the third programme year allowed for increased measures including;

  • The Base Rates for all age groups increased, with larger increases in funding increases for places offered to children under the age of three.
  • The flat rate for services registered on the Tusla Early Years Register as sessional only has increased from €4,075 to €5,000.
  • The minimum Base Rate allocation has increased from €8,150 to €14,000. This is the minimum amount of funding a centre-based service (not childminders) will receive through their Base Rate and ensures a minimum guaranteed income for services.
  • The maximum Base Rate allocation is decreasing from €600,000 to €500,000.
For year 3 of Core Funding, my Department introduced a new Fee Increase Assessment and Approval Process whereby a Partner Service meeting certain criteria could apply to increase their fees up to an approved level. This process closed for applications on 29 November 2024. My Department also introduced a cap on fees for services joining Core Funding for the first time this year. A fee cap will apply to all Partner Services from September 2025. These new developments are in line with Recommendations 21 and 22 in Partnership for the Public Good.

My Department regularly engages with the sector through the Early Learning and Childcare Stakeholder Forum (ELCSF) . Matters relevant to the sector are discussed, including any developments to the Core Funding Scheme.

Further increases in year four of the Scheme, announced in Budget 2025, which will see the total allocation increase to over €390 million. Further details on the fourth programme year will be announced to services in advance of the application opening.

Core Funding also allows for services to access other supports and benefits offered by my Department including the Building Blocks capital grant scheme, and Equal start which aims to support access and participation in early learning and care (ELC) and school-age childcare (SAC) for children and their families who experience disadvantage.

In addition, Core Funding Partner Services can also avail of case management supports if they experience viability concerns. 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.

Core Funding Partner services can avail of many supports which are not available to services outside of the scheme, and I am committed to increasing the direct financial incentives of Core Funding, as well as ensuring the suite of other supports available to Partner Services continue to be developed and remain attractive.

Currently, 92% of eligible services have signed up to Core Funding year. This equates to over 4,400 services, and means that more services have opted into the scheme this year, than in programme years one or two.

My Department will continue to engage with the sector, and continue to develop the scheme so that it can continue to see the high uptake levels it has seen this year, and indeed since it was launched in 2022.

Photo of James GeogheganJames Geoghegan (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

1006. To ask the Minister for Children, Equality, Disability, Integration and Youth the total number of services that have withdrawn from core funding, by month and by county, in the past 12 months, up to and including today’s date, in tabular form; and if she will make a statement on the matter. [3464/25]

Photo of Norma FoleyNorma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Over 92% or more than 4,400, providers have signed up for Core Funding in year 3.

There are a total of 12 services whose latest application status is "withdrawn" in the previous 12 months of the scheme.

The below table shows the services who have withdrawn from Core funding in the previous 12 month by location and withdrawal month.

County Number of Services Date of Withdrawal Programme Year 2023/2024
Clare 1 August 2024
Cork County 1 December 2024
Cavan 1 April 2024
Kilkenny 1 May 2024
Mayo 1 March 2024
South Dublin 2 May 2024
County Number of Services Date of Withdrawal Programme Year 2024/2025
Galway 3 August 2024
Laois 1 August 2024
Westmeath 1 January 2025

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

While a provider may withdraw from Core Funding, they remain eligible in this programme year to provide the National Childcare Scheme (NCS), the Early Childhood Care and Education (ECCE) programme and the Community Childcare Subvention Plus (CCSP) Saver programme.

The Agreement for the provision of Core Funding in Programme year 3 (2024/2025) states that services must give 3 months’ notice of their intention to withdraw to the scheme administrator, and 3 months' written notice to parents/guardians.

As of 28 January, information received from Pobal, the scheme administrator, indicates 3 Partner Services have given notice of their intention to withdraw from the scheme to Pobal, with withdrawal dates in March this year.

County Number of Services Date of Withdrawal
Dublin City 3 March 2025

In addition to these data, my officials have requested updated information on services, previously in years 1 and/or 2 of Core Funding that did not contract for the Scheme in year 3 but who continue to operate. Once this information is received, it can be shared directly with Deputy Geoghegan.

Comments

No comments

Log in or join to post a public comment.