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For Oral Answer on : 02/10/2024
Question Number(s): 34 Question Reference(s): 39083/24
Department: Children, Equality, Disability, Integration and Youth
Asked by: David Stanton T.D.
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QUESTION
To ask the Minister for Children; Equality; Disability; Integration and Youth his plans to increase core funding for childcare providers; and if he will make a statement on the matter.
REPLY
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, will increase again by another 15% in year 3 (to €331 million). This facilitates the following changes from 2 September:
- The Base Rates for all age groups are increasing with larger increases in funding for places offered to children under the age of three. All providers currently signed up to Core Funding will receive a higher payment going forward to support their day-to-day costs.
- The flat rate for services registered on the Tusla Early Years Register as sessional-only is increasing from €4,075 to €5,000. This will strengthen supports to sessional-only services, who typically operate for shorter hours per week and fewer weeks per year.
- The minimum Base Rate allocation is increasing from €8,150 to €14,000. This is the minimum amount of funding a centre-based service will receive through their Base Rate. This ensures a minimum guaranteed income for services. This increase supports for smaller services and services operating in rural areas, who may be prone to fluctuations in demand.
Additionally there has been changes in the Fee Management conditions of the scheme.
Up to now, services availing of Core Funding have not been allowed to raise their fees above what was charged to parents on 30 September 2021 (or at the point of first signing up for Core Funding if the service did not exist on 30 September 2021).
The fee freeze will remain in place for the majority of these services for year 3 of Core Funding, though services whose fees have been frozen at a level that may not be sufficient to sustain their business even with increased funding available through Core Funding, will have the opportunity to apply for a Fee Increase Assessment. Only services currently charging low fees (fees below the average in their county) will be eligible to apply and the onus will be on the provider to demonstrate a need for a fee increase. Any approved fee increases will not go above the increased universal NCS subsidy that a parent would be receiving for the full hours offered within the fee. This means that parents receiving the universal NCS subsidy for the full hours offered in these services will not face higher costs.
Further increases to Core Funding for year 4 (September 2025-August 2026) will be considered in the context of the estimates process.
