New funding model will transform childcare sector, claims minister

Roderic O'Gorman launched ‘Together for Better’, a new funding model for Early Learning and Care and School-Age Childcare. Picture: Leah Farrell / RollingNews.ie

Around 200,000 families who pay for childcare are set to benefit from a new Government funding scheme, according to the Minister for Children.

The Government’s new funding model, ‘Together for Better’ was launched on Thursday by Roderic O’Gorman who said the core funding will provide a "sound framework" to improve the quality and affordability of childcare, and pay and conditions for workers.

Up to 25,000 staff in the sector are set to see a pay increase as a result of providers signing up to the deal.

The new funding model includes the new annual €221m Core Funding scheme in addition to the Early Childhood Care and Education (ECCE) programme and the National Childcare Scheme (NCS).

Fees freeze

Providers who sign up for the funding partnership with the Government have to freeze their fees at last year’s September rates.

It also requires new pay rates to be enforced for staff and a significant degree of financial transparency of how the provider’s services operate.

Roderic O'Gorman. Picture: Leah Farrell / RollingNews.ie

Mr O’Gorman said: “Core funding is optional but nine out of 10 services across the country have now signed up to core funding, so that’s 4,000 services have signed up.

“This would mean 25,000 staff across the sector will be entitled to a pay increase following on from the introduction of the new pay rates that we’ve achieved through the employment regulation order.”

200,000 families to benefit

He said 200,000 families and children will stand to benefit from the greater affordability that’s being introduced.

The core funding model, which was first announced in the Budget last year, came into operation on Thursday in tandem with the start of Employment Regulation Orders (EROs) for the sector.

The EROs will mean improved pay for over 70% of workers in the sector, with specific recognition for different roles and qualifications, establishing a wage structure for staff.

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Mr O’Gorman said he plans to broaden the National Childcare Scheme (NCS) to “radically” bring down the cost of childcare fees for parents in the Budget.

He said: “It's a 50 cent per hour general subvention right now. That’s a subvention that is taken away from their childcare bill that makes it cheaper.

“And in this year's budget, we're looking to grow that and that is directly deducted from the fees parents pay.

“I want parents to be able to feel the difference, feel the savings following what we achieve in this year’s budget.”

The Irish Examiner reported earlier this week that parents are likely to see their childcare costs decline by €200 per month next year and a further €200 per month the following year after agreement was reached between Government parties ahead of the next budget.