366. Deputy Claire Kerrane asked the Minister for Children, Disability and Equality the estimated full year cost of increasing the rate paid to ECCE to €100 per child per week. [52505/26]

ECCE

The Early Childhood Care and Education (ECCE) Programme scheme is a universal scheme which provides 2 years of free preschool to children in the eligible age range of 2 years and 8 months to 5 years and 6 months. The Department funds private early learning and care service providers to provide the ECCE programme at a standard rate of €69 per week per child attending the ECCE programme. The programme is provided for 3 hours per day, 5 days per week over 38 weeks per year. All children can avail of two full years of the Programme.

The Deputy requested the estimated full-year cost of increasing the ECCE capitation grant to €100 per child per week. This constitutes a €31 increase per child per week on the current capitation of €69, or an increase of 44.9%.

To calculate the full year cost, officials in the Department used the total budget allocation for the ECCE scheme for 2026 which is a total of €259 million. Using this allocation the estimated full year cost of increasing ECCE capitation by 44.9% would be €116.3 million. Therefore, a 44.9% increase to the ECCE capitation would bring the total full year allocation to an estimated €375.3 million.

It is important to note that these estimates does not account for change in usage resulting from this proposed subsidy increase. Any changes to subsidies may create a change in behaviours, for example, an increase in the number of services offering the scheme or families availing of ECCE for the first time.

Core Funding

It is important to also note that ECCE funding is designed to cover the cost of the ECCE place, not to contribute to operational costs of the service. The Core Funding Scheme, which has been in operation since 2022 is specifically designed to contribute to the operating costs and sustainability of early learning and childcare services. Core Funding is tailored to the individual service, making it a more flexible platform for investment towards the operating costs of services.

Through ECCE and Core Funding combined, services currently receive a minimum of €80.40 per child per week, before the application of graduate premiums, targeted measures, and the ring-fenced funding for improving staff pay and conditions.

In addition, there are targeted supports for small and sessional services through Core Funding, including the flat rate of €5,000 for services registered with Tusla as sessional only and the minimum base rate allocation, which is €14,400.