National Core Funding Survey & Response

Introduction

The Federation of Early Childhood Providers has grown from strength to strength since it’s foundation in 2019, representing 1,456 independent ECEC services by the end of 2021. It has now undertaken a nationwide survey to assess the ECEC sector response to Core Funding. In total there were over 1,000 responses from locations across the country, and from a range of provider types and sizes. This very broad response constitutes a good representative sample of providers, aiding confidence in our analysis.

Commenting on the results, FECP chair Elaine Dunne notes:

“There are certain positives to Core Funding, well-publicised elements of the plan that are ambitious and progressive, which we fully support. But there are undeniable issues with the model itself, and separately the implementation of it, that need to be addressed.

… key objectives of the Core Funding model, such as enabling cross-sector pay rises and sustainability, will not be met. Despite this, and due to financial penalties implied by not signing, providers feel pressured to agree to the terms.

Elaine Dunne, Chair, FECP

Financial Penalties
This survey data is a strong signal to the Department that small services are struggling, and that key objectives of the Core Funding model, such as enabling cross-sector pay rises and sustainability, will not be met. Despite this, and due to financial penalties implied by not signing, providers feel pressured to agree to the terms.

The response to Core Funding is a consequence of a lack of proper stakeholder partnership at the design stage. It has been launched as a fait accompli, with very little time for services to react before relevant deadlines arise. There are legitimate concerns, and it is wrong that funding and grant access will be withdrawn from ECCE services who don’t comply. It is also wrong to prohibit these services from meeting inflation in their cost base with appropriate and reasonable fee increases, given that for so many smaller neighbourhood preschool services the Core Funding amount they will receive is negligible. They have been underfunded for years and are now distressed. For those services, you have a contractually fixed, yet grossly insufficient government funding income on the one hand, and spiralling costs on the other – it is a recipe for hardship, a fact that needs to be properly recognised and addressed.

Misconceptions
The sector needs to see real engagement now that impacts are becoming clear. Many provider’s issues have been branded as “misconceptions”, in a particularly damaging response from the Department. We seek a fresh dialogue to restore mutual understanding, trust, and partnership. Publishing this survey is a first step.

An Endorsement from the Sector
The Government’s approach to the rollout of Core Funding has been rejected within key parts of the sector, and there are some legal questions around that which are being examined by the FECP. We believe our advocacy regarding the anomalies in Core Funding, particularly for preschools and small providers, is part of the reason for the Federation’s continued growth and engagement from members. This is an endorsement which gives us the confidence to continue to pursue a better outcome for the ECEC sector, its providers and staff, and the families we support.” – Elaine Dunne, Chair, FECP

A separate document, addressing several public statements that have been made about Core Funding, accompanies this survey result: Core Funding – True or False

Summary Results

• Most providers, just under 60%, report being either unhappy or very unhappy with Core Funding
• 77% of services reported that Core Funding will not enable them to give staff a raise next year
• Over half of providers report that they expect costs to rise more than 15% next year, with just under a third expecting them to increase by over 20%
• 34% reported that Core Funding will worsen sustainability, while just 21% reported that Core Funding will improve sustainability
• Most services have not obtained independent financial advice about Core Funding. However, of the respondents who have, 68% were advised not to proceed with the contract
• Worryingly, 5.66% of providers report that their service will not remain open next year (rising to 7.5% of ECCE-Only services). If this were extrapolated to the entire sector, it would indicate somewhere in the region of 264 service closures next year[1], significantly above the trend of closures pre-COVID and a deeply negative signal in the context of future ECCE waiting lists

• 60% of respondents report that the Sector Profile Survey should not be a prerequisite to receiving Core Funding, while 53% felt the questions were too intrusive

---

[1] Pobal data, downloaded from Pobal maps indicates 4,668 providers in Ireland currently.

Detailed Results

Contact and Non-Contact Time

• Over half of ECCE Only services reported that they spend up to 12 hours non-contact time per week, with 31% of ECCE Only services reporting they spend over 16 hours non-contact time per week

• 

• 

• 

Costs & Commercial Rates

• Over half of providers report that they expect costs to rise more than 15% next year, with just under a third expecting them to increase by over 20%
• Overall, 39% of services pay rates on the property they provide a service from. This falls to 9% for ECCE Only services
• Of those who do not currently pay Rates, the cost is a deterrent to expanding businesses in 54% of cases (or 60% of cases among ECCE Only services)

• 

• 

• 

• 

• 

Staff Signing On for Social Welfare

• 

• 

Service Viability

• 5.66% of all providers report that their service will not remain open next year (rising to 7.5% of ECCE Only services). If this were extrapolated to the entire sector, it would indicate somewhere in the region of 264 service closures next year[1], significantly above the trend of closures pre-COVID and a deeply negative signal in the context of future ECCE waiting lists
• Of the services which report that they will remain open next year, the primary reasons cited are:
  • 60% had already committed places to families
  • 49% will make personal sacrifices to stay open
  • 33% can’t afford the redundancy owed to staff
  • 20% have leftover EWSS which will support them
  • While just 14% report that they don’t have a viability concern about their business

• 

• 

• 

• 

Funding & Sustainability

• 77% of services reported that Core Funding will not enable them to give staff a raise next year
• 34% reported that Core Funding will worsen sustainability, while just 21% reported that Core Funding will improve sustainability
• Most services have not obtained independent financial advice about Core Funding. However, of the respondents who have, 68% were advised not to proceed with the contract

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

•