ECCE capitation and inflation
Deputy Collins made the same case as Deputy Carey, arguing ECCE capitation had fallen behind inflation and was being subsidised by providers. The Taoiseach said the Federation of Early Childhood Providers sought €76 per child, and outlined the relationship between capitation and core funding.
My questions are the same as Deputy Carey's question. It is a hugely important issue in each constituency, as the Taoiseach is aware. The early childhood care and education programme was introduced in 2010 at €64.50 capitation grant per week per child. By 2018 it had increased to €69, where it stands today. If capitation had kept pace with inflation, it should be at €76 per child. The approach has been to leave capitation where it has been for years and early years service providers are absorbing the rise in inflation. This means that in many cases early years providers are, effectively, subsidising their businesses at a personal cost. They have not had an increase in capitation in four years. It must be borne in mind that this is an increasingly expensive essential public service that has been delivered by private business owners. There must be fairness in the funding levels. Will the Government increase the ECCE capitation from €69 per week to €76 per week per child, with immediate effect, before some of these crèches see closures?
Comment on this
The information I am receiving from the Department is that the Federation of Early Childhood Providers, FECP, is seeking an increase in capitation for the ECCE programmes to €76 per child per week. The argument is that capitation has not increased in line with inflation. Data from the FECP show that capitation rates from 2010 of €64.50 per child, adjusted in line with inflation capitation rate would be €76. With core funding, however, the weekly capitation for a child would be at least €78.75 per week. That may not apply to ECCE-only services in terms of the core funding model. Because of the nature of ECCE, which is 15 hours per week over 38 weeks of the year, it is equivalent to 23% of the annual hours of a full day service operating from 8 a.m. to 6 p.m. We will engage with the Minister on the points the Deputy has raised.