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For Written Answer on : 15/10/2024
Question Number(s): 541 Question Reference(s): 41093/24
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 the maximum base rate allocation for larger childcare service providers; the rationale for same; 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.
Core Funding has increased by 15% to €331 million for the third programme year which began in September 2024. This increase will facilitate increases in the base rate for all age groups, the strengthening of targeted measures which were introduced in year 2 to support sessional and smaller services, and growth of almost 6%.
The majority of Core Funding is distributed to services via the Base Rate, which is based on a service’s staffed capacity – the opening hours, operating weeks, the age group for whom services are provided, and the number of places available. Services opening for longer hours or offering more places will receive a higher value of Core Funding than other services. This is because their costs of operation are higher.
Places do not have to be filled in order to be allocated Core Funding, but for capacity to be funded, there must be enough staff in place to satisfy the minimum staff-to-child ratios as set in the Regulations. The staffing required depends on the age range and session types (full day, part time, sessional, etc.) of the places available. This feature of the scheme gives Partner Services stability of income through Core Funding in times of lower uptake, as it is not based on a child’s attendance.
A maximum Base Rate allocation was introduced in September 2023 for the second year of Core Funding. Individual Partner Services will not receive funding for their staffed capacity through the Base Rate beyond this maximum value. The maximum Base Rate allocation aims to maximise the efficiency of this significant State investment in the sector, to best spread a limited budget across the entire sector rather than increasing funded capacity for the largest services.
When introduced, this maximum allocation was set at €600,000 and from September 2024 it has been reduced to the current value of €500,000.
This maximum does not apply to the Graduate Premiums, which may still increase a Partner Service’s total allocation beyond this maximum allocation.
