True or False – Addressing Statements about Core Funding

In the course of representing members, and addressing common questions around Core Funding, the FECP were asked to consider a number of statements which are often made in public. Please see below statements, and considerations. Hopefully this will help clarify things for members.

Statement 1: “No service will see a reduction in funding”

All services lose Higher Capitation (“HC”) and Program Support Payments (“PSP”) from September 2022. Only those ECCE services who don’t sign on to Core Funding (“CF”) could lose out on a net basis, because Core Funding compensates for the loss of HC and PSP, and where the calculation leaves a service in a loss-making position, the Department have agreed to fund the difference. So, no service that signs up for Core Funding will see an overall reduction. Only the composition will change.

If you choose not to agree the terms of CF (freezing of fees, being obliged to offer NCS for non-ECCE hours, and to disclose your financial information to Department via Sector Profile Survey among possible others not yet known) then you could be at a lower funding rate, due to loss of HC and PSP, and potential loss of access to future grant funding etc. For this reason, many services find the approach coercive. The Federation of Early Childhood Providers is establishing a legal position on this point.

Statement 2: “Providers with low occupancy will see the greatest funding increase (e.g. rural service)”

A provider with capacity 22, occupancy 22, in receipt of PSP and Higher Capitation will receive approx. €68k under CF, whereas they previously would have received €69.5k. CF funding is lower than existing funding model by ~€1.5k in full occupancy.

A provider with capacity 22, occupancy 16, in receipt of PSP and Higher Capitation will receive approx. €52.5k under CF, whereas they previously would have received €50.5k. CF funding is higher than existing funding model by ~€2k in lower occupancy (in this example).

So yes, there is a relatively greater funding increase (+€2k in the example above) when occupancy is lower. But there is a lower overall level of funding … €68k for full occupancy versus €52.5k for partial occupancy in this example.

It’s important not to confuse this issue.

Statement 3: “Standard Capitation Sessional Services will see a funding increase of between 9.5% and 20.8%”

This is true, the exact increase depends on occupancy levels. 9.5% increase for a Standard Capitation service on full occupancy (22 children, 2 staff) and 20.8% increase on lowest occupancy relative to staff ratio (12 children, 2 staff).

However, once again context is vital. The actual amount of funding received is very different in both cases.

Under CF, in Standard Cap sessions:

• With 22 children and 2 staff, funding increases by 9.5%, and amounts to €65.8k
• With 12 children and 2 staff, funding increases by 20.8%, and amounts to €39.6k (even though the service is still paying for 2 staff to remain in-ratio)

Statement 4: “Higher Capitation Sessional Services will see funding increase of up to 11.1%”

This is true, the exact increase depends on occupancy levels. -1.7% decrease for a Higher Capitation service on full occupancy (22 children, 2 staff) and 11.1% increase on lowest occupancy relative to staff ratio (12 children, 2 staff).

However, once again context is vital. The actual amount of funding received is very different in both cases.

Under CF, in Higher Cap sessions:

• With 22 children and 2 staff, funding decreases by 1.7% (but is floored at zero by the Department), and amounts to €68.3k (or €69.5k when floored)
• With 12 children and 2 staff, funding increases by 11.1% and amounts to €42.1k (even though the service is still paying for 2 staff to remain in-ratio)

Statement 5: Higher Capitation Sessional Services, with high occupancy, currently receive the highest levels of state funding of any service type. For instance, a service with two staff at full capacity would receive funding of €110 -120 per hour when non staff costs are excluded (staff costs account for 30% outgoings)

This is a leading statement, devoid of context. Receiving the highest level of state funding of any service type does not mean that funding is sufficient to make a living for service owners or staff, or provide deserved quality levels for children. There is no regard in this statement for the cost base, or for the fact that services are prohibited from charging fees for ECCE hours to meet real-world costs. Having 2 staff run an ECCE session in fact reveals that extensive non-contact hours are not covered by government funding, because both educators are occupied in-session.

Non-contact hours are “free labour” provided to government against the will of providers. It is unclear where the non-staff costs figure came from, whether it is a current or old estimate, whether it includes cover staff (at agency rates) for periods of illness/absence, growing regulatory overheads, managerial and staff non-contact hours, the impact of inflation, a potential Employment Regulation Order, or incoming Pension obligations.

Click the image to see an estimated breakdown of Costs below:

List of Non-Contact Tasks, for which the Government does not remunerate ECCE Preschool services

It is unreasonable for the Government to expect services to be disallowed from charging or raising fees, when vital tasks must be done to keep a service operational, and these hours are not remunerated. Simply stating that Core Funding includes payment for non-contact hours doesn’t make it so, especially in the case of services whose income has been frozen at 2018 levels and who see no or very little net new funding under the CFM.

Family Support

• Create and maintain communication channels with Parents (e.g. WhatsApp group)
• Deal with NCS complexities, guide Parents re programme and application process etc.
• Support families through transitions into, or out of preschool/into primary school
• Apply for AIM support where a need is identified for a child
• Liaise with external supports / fill in reports / questionnaires to ensure a wholistic approach to a child’s development
• Remain available for queries evenings/weekends
• Attend Tusla/other meetings for at-risk children
• Parent / Teacher Meetings

General Tasks & Administration

• Deal with enquiries
• Do capacity planning
• Organise Open Day / Inductions / Sports Day / Graduation Ceremony / Christmas Concerts
• Keep on top of changes of address etc. of families
• Deal with rostering and payroll and/or AIM/EWSS factors
• Register children on HIVE
• Ensure GDPR compliance with PPSN gathering/destruction
• Take and return deposits
• Ensure a good supply of arts & crafts materials, equipment, cleaning products, office consumables
• Hire and manage qualified staff, support staff morale
• Supply registration forms, validate inputs, interpret handwriting etc.
• Issue ECCE Parental Declarations, NCS letters for signature
• Issue information to parents – parent handbook, practicalities etc.
• Maintain a Social Media presence
• Pay all bills, negotiate deals and discounts wherever possible
• Keep the accounts updated, manage petty cash etc.
• Deal with eligibility queries
• Advertise the service
• Apply for funding, chase tradespeople, manage invoices & receipts
• Keep equipment up to date, fix or repair items that are broken
• Sanitise the premises and all contents per roster each day during the term
• Answer/act upon emails from Pobal / CCC / Others

Governance & Compliance

• Manage continuing training needs, identify funds to allocate for keeping the service in-ratio and also to pay for the training itself
• Ensure compliance with all relevant parties, legislation etc.
• Have all documentation and premises available for inspection at all times
• ECCE pre-contracting/contract process
• Review / Update Policies & Procedures Annually
• Get fire extinguishers, boilers and alarms certified annually

Statement 6: Higher Capitation, high occupancy Sessional Services will see the least funding increase  

Correct, see responses above on funding relativity and the importance of context.