Dáil Éireann Debate, Wednesday - 5 February 2025
1003. Deputy Gary Gannon asked 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]
Amharc ar fhreagraThe 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.
