Childcare transition fund
Deputy Smith asks how many childcare places are affected by providers who did not sign up to the fee-freeze transition fund. The Minister says core funding and the transition fund are intended to support quality, pay and fee stability, but the deputy presses about the missing 8%.
On 18 May, the Minister, Deputy O'Gorman, welcomed that 92% of early learning and care and school age childcare providers had signed up to the transition fund which would allow for a freeze of parental fees. That means that 8% of providers have not signed up to it. We do not know how many childcare places those 8% represent. It means that many are forcing parents to pay increased fees. Some in my constituency have nowhere else to go. It is the only childcare provider in the area. Some working parents are paying an extra €500 a month. Can we establish how many childcare places 8% of providers represent? What will we do to alleviate the hardship for parents who are being forced into this situation when we do not have a proper universal childcare system?
Comment on this
I thank the Deputy for raising this. As she is aware, a new funding model, or core funding, was adopted by the Government in December and will be in place from September. The purpose is to support quality provision, to improve pay and conditions for staff and to manage fees. As part of that core funding, about €221 million was provided to the sector. A transition fund is in place between 2 May and 31 August. This will be paid to all participating providers to ensure no increase in parental fees from the September 2021 rates. Some 92% of early learning and care and school age childcare providers have agreed to operate a freeze on parental fees by coming into the contract under the transition fund, which is effective between 2 May and 31 August. I will ask the Minister, Deputy O'Gorman, to update the Deputy directly.
Comment on this
What about the 8% who have not signed up, not the 92% who have?