Written answer
Childcare Services
The Minister acknowledged concerns over newly imposed commercial rates on childcare providers, stating that Tailte Éireann and local authorities are responsible but that her Department is working with the DHLGH to clarify the issue. She highlighted increased Core Funding and case-management supports for financially vulnerable services.
512. Deputy Seán Ó Fearghaíl asked the Minister for Children, Disability and Equality If she will consider the salient points raised in correspondence (details supplied) regarding a Kildare based childcare provider who is considering exiting the service. [67032/26]
Comment on this
I am aware that a number of early learning and childcare services have recently received rates-payable notifications from their Local Authorities, where previously they had not been required to pay them.
Given the importance of early learning and childcare for children, families and communities across the country, I am giving this matter my full attention.
I wish to note that the matter of commercial rates payments for early learning and childcare providers does not fall under the remit of the Department of Children, Disability and Equality and the Department has no role in determining which properties are rateable.
The making of valuations for rating purposes is the sole responsibility of Tailte Éireann, formerly the Commissioner of Valuation. Tailte Éireann falls under the aegis of the Department of Housing, Local Government and Heritage (DHLGH). Furthermore, the billing and collection of rates is solely a matter for the relevant local authority; the Department of Children has no function in that regard.
I have liaised extensively with Minister Browne, my cabinet colleague at DHLGH with a view to reaching a satisfactory conclusion on this matter. Additionally, officials in the Department continue to work with colleagues in DHLGH in the hope of finding a solution that provides clarity to the ELC & SAC sector.
I do not want any provider to be faced with financial sustainability issues in their delivery of early learning and childcare services and as such the Department has taken steps to ensure the Core Funding scheme continues to support the sustainability of the sector.
Core Funding is a supply-side grant to early learning and childcare providers towards their operating costs. It is designed to promote affordability for parents and sustainability for providers through increased funding to the sector, paid on a consistent and equitable basis.
When first introduced in 2022, Core Funding had an annual allocation of €259 million, of which, €210.8 million was entirely new funding to the sector.
That annual allocation has increased year-on-year and exceeds €482 million for the fifth, and current, year of Core Funding. This represents an increase of 86% in Core Funding since the scheme began in September 2022.
In addition to the year-on-year increases, the Department has made changes to improve the sustainability of providers through, for example, targeted measures for small and sessional services and a fee increase assessment and approval process for services with fees frozen at unsustainably low rates.
There are also wider financial supports available where a service is experiencing financial difficulty or has concerns about their viability. These supports can be accessed through the Department’s case management process, which can be accessed while remaining in Core Funding.
I would encourage any service experiencing financial difficulty and who would like support to contact their CCC to access case management supports. Contact details for the CCCs can be found at City and County Childcare Committees: www.gov.ie/en/department-of-children-disability-and-equality/campaigns/city-and-county-childcare-committees/