Dáil Éireann Debate, Tuesday - 25 July 2023
1069. Deputy Peter Burke asked the Minister for Children, Equality, Disability, Integration and Youth if a childcare operator (details supplied) can be facilitated with a restructure of their charges to keep the business viable; and if he will make a statement on the matter. [36796/23]
View answerTogether for Better, the new funding model, is about getting the most out of the three early learning and childcare programmes, ECCE including AIM, NCS and the new Core Funding scheme, working together and ensuring stability and sustainability in the sector. Together for Better is already delivering substantial benefits for children, parents, staff and providers and I am very proud of the significant achievements in its first year of operation.
Core Funding, worth €259 million in Year 1 and €287 million in Year 2 (an 11% increase), intentionally introduces Fee Management in a sustainable and considered manner, allowing for substantial increases in the total cost base for the sector without additional costs being passed on to parents.
Fee management in Year 1 and Year 2 is effectively a fee freeze, where providers cannot increase the fees charged from September 2021. An increased charge of any kind for an existing and unchanged Service Type will be in breach of Core Funding rules. The terms and conditions outlined in the Core Funding Partner Service Funding Agreement is publicly available here: first5fundingmodel.gov.ie/wp-content/uploads/2022/08/Core-Funding-Partner-Service-Funding-Agreement-09.08.22-Final-revised-clean-PDF.pdf
The approach to introducing Fee Management under Core Funding is guided by the recommendations of the Expert Group outlined in Partnership for the Public Good, and approved by Government. It ensures that the introduction of Fee Management to the sector is done in a sustainable and considered manner.
My Department used the most recent data available to allocate Core Funding for Year 2, with data emerging from current operations of services from March 2023 underpinning the recently announced allocation model, as well as the most up-to-date macroeconomic projections. More data will be available to my Department through the validated financial returns, which will be gathered in October 2023, and will allow further analysis of provider income and costs. This financial return data may underpin developments in Fee Management for Year 3.
I do not want any services to be faced with financial sustainability issues and I am fully committed to working with any such service to support them in delivering early learning and childcare for the public good. There are supports, financial and otherwise, available to services who need them.
If services are experiencing financial sustainability isssues, individualised support is available directly through the City/County Childcare Committees (CCC) who act on behalf of my Department. This can include tailored information on my Department’s funding programmes, support with accessing online systems, and individualised case management supports to services that require it. For specific queries or concerns in relation to Core Funding or any other of the Department’s programmes, services should contact their local CCC who will be best placed to provide individual and confidential guidance and support. Contact details are available at: myccc.ie/where-is-my-nearest-ccc
