On 7 December, I launched Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare, available at first5fundingmodel.gov.ie/wp-content/uploads/2021/12/Funding-Model-FINAL-REPORT-2.pdf.
This report was delivered by an Expert Group which was independently chaired and comprised national and international experts and made 25 recommendations which were accepted in full by Government and are now beginning to be implemented. On the occasion of the launch there was a direct communication to Early Learning and Care and School Age Childcare providers about the report.
As per the recommendations of the Expert Group, the new funding model comprises four key elements:
1. Core Funding, a new supply-side payment for providers designed to support quality (including improved staff pay), sustainability, and enhanced public management, with associated conditions in relation to fee control and cost transparency, incorporating funding for administration and to support the employment of graduate staff;
2. Funding for new universal and targeted measures to address socio-economic disadvantage;
3. The Early Childhood Care and Education (ECCE) programme, but with funding to support the employment of graduate staff incorporated into Core Funding, and AIM extended beyond the ECCE programme (in line with First 5 commitments);
4. An amended National Childcare Scheme (NCS) to provide enhanced universal support to all families, tailor additional supports to high volume users of services, and resolve certain issues arising from the NCS work/study test or wraparound policy.
The announcement of Budget 2022 signalled the introduction of many elements of this model this year. In particular, €69 million for the new Core Funding stream (equivalent to €207 million in a full year) is being made available from September. Developments to the NCS will also come into effect this year including an extension of the universal subsidy to children of all ages up to 15 and a change to the practice of deducting time spent in ECCE or school from the number of hours of NCS subsidy for which families are eligible.
Core Funding will support providers in meeting their operating costs, including increased costs related to improved quality measures, in return for a commitment that fees to parents will not increase and is contingent on an Employment Regulation Order being agreed by the Joint Labour Committee. Core Funding amounts to an estimated increase of 16% in the total annual income to the sector.
Initial information about the scheme was made available to providers as part of the Budget FAQ: gov.ie/en/publication/b3e97-budget-2022-overview-and-faqs-for-early-learning-and-care-elc-and-school-age-childcare-sac-providers-and-parents/.
Further information was issued on 4th of February. This reiterated that Core Funding will be allocated to services based on their capacity and the qualifications of those working in a service in line with three elements, with the majority of Core Funding (i.e. €172 million of the €207 million) distributed via the first of these elements:
1. Main Base Rate: Number of child places in an age group * Value based on ratio that applies to age group * Hours of operation per week * Weeks open per year
2. Graduate Lead Educator Uplift: Applied at room level, scaling in line with hours per week and weeks per year group is operating (Maximum one Graduate Lead Educator uplift per ELC room)
3. Graduate Manager Uplift: Applied at service level, scaling in line with hours per week and weeks per year service is operating (Maximum one Graduate Manager uplift per service)
A Ready Reckoner to support services to determine the potential value of Core Funding will be available in early March along with further communications to the sector about the funding and contract.
In the interim period in advance of Core Funding, significant additional investment is being made in the sector through the Employment Wage Subsidy Scheme (EWSS), which will remain available to the sector until April 2022, with a continued exemption to the turnover rule for employers in the sector. Following the cessation of EWSS, a once-off Transition Fund will operate from May to August 2022, to support providers in the period leading up to the new Core Funding stream, in return for a commitment not to increase fees from September 2021 levels. The sum paid to each service under the Transition Fund will depend on the service’s capacity and location, and will reflect opening hours.
