Written answer
Departmental Funding
2858. Deputy Mark Wall asked the Minister for Children, Disability and Equality the additional funding required to increase funding for the ECCE scheme by 10%; the proposed new funding levels; when funding for ECCE was last increased, in tabular form; and if she will make a statement on the matter. [56699/26]
Comment on this
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 deliver the ECCE programme at a standard capitation rate of €69 per week per child attending the ECCE programme.
In calculating the full year cost of increasing funding by the programme by 10%, officials in the Department used the total budget allocation for the ECCE programme for 2026 which is €259 million. Using this allocation the estimated full year cost of increasing funding by 10% would be €25.9 million.
The Deputy requested information on when there was last an increase to funding for the ECCE Programme. Funding for the ECCE programme was last increased in the 2025 Budget compared to the 2024 Budget. This was an increase of €3,977,282. As requested, the below table details this increase.
The Deputy may also be referring to the capitation rate paid per child per week. The history of ECCE and related funding is set out below.
In 2010, when the ECCE Programme was first introduced, the standard capitation was €64.50 and the higher capitation rate (for services with graduate room leaders) was €75 and the adult child ratio was 1:10. This equated to a maximum weekly income to providers of €645 (with standard capitation) and €750 (with higher capitation) for every 10 children to one adult.
In 2012, as part of austerity measures, the standard capitation was reduced to €62.50 and the higher capitation rate was reduced to €73. To offset this, the adult child ratio increased from 1:10 to 1:11. This equated to a maximum weekly income to providers of €687.50 (with standard capitation) and €803 (with higher capitation) for every 11 children to one adult.
In 2016, ECCE capitation was restored to €64.50 (standard capitation) and €75 (higher capitation) though the increased ratio remained in place. This equated to a maximum weekly income to providers of €709.50 (with standard capitation) and €825 (with higher capitation) for every 11 children to one adult.
In 2017, a non-contact time payment – later known as Programme Support Payment (PSP) – was introduced. This provided additional funding to ECCE providers equivalent to 7 additional days at standard capitation rates (equivalent to an additional €26.14 per week per 11 children or €2.38 per week per child). Funding for the ECCE Programme and PSP combined equated to a maximum weekly income to providers of €735.64 (where standard capitation applied) and €851.14 (where higher capitation applied) for every 11 children to one adult.
In 2018, ECCE capitation was increase by 7% to €69.00 (standard capitation) and €80.25 (higher capitation). Funding for the ECCE Programme and PSP (equivalent to 7 additional days at standard capitation rates equivalent to an additional €27.96 per week per 11 children or €2.54 per week per child) combined equated to a maximum weekly income to providers of €786.96 (where standard capitation applied) and €910.71 (where higher capitation applied) for every 11 children to one adult.
In 2021, the PSP was increased an equivalent of 8 additional days at standard capitation rates (equivalent to an additional €31.96 per week per 11 children or €2.91 per child per week). Funding for the ECCE Programme and PSP combined equated combined equated to a maximum weekly income to providers of €790.96 (where standard capitation applied) and €914.71 (where higher capitation applied) for every 11 children to one adult.
When Core Funding services was introduced in 2022, services previously in receipt of ECCE standard capitation (of €69 per week per child) received an addition €9.75 per child per week through Core Funding – an increase of 9.5%.
For the current programme year, with ECCE and Core Funding combined, services currently receive a minimum of €80.40 per child per week. This will rise to a minimum of €81.75 per child per week from September, owing to increases in the Core Funding allocation.
This is before the application of graduate premium 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.