Transcript Funding Childcare in Ireland

Funding Childcare in
Ireland
Darragh Doherty
Office of the Minister for Children
& Youth Affairs (OMCYA), Ireland
Country Profile
Ireland
Population: 4.23m (April 2006)
Land Area: 68,890 sq km
EU Member State
Number of children birth to six:
418,612 (10 % of population)
Irish Economy 1994-2007
“The Celtic Tiger”




Economic growth – averaged 7% p.a. between 1997 and 2005
Unemployment: 13.2% in 1990
4.3% in 2006
12.5% in 2009
Female labour force participation rate:
2006: 59%
2009: 54%
Net Immigration
1985: 30%
Impact on Govt Policy




Debt/GDP ratio declined from 65% in 1997
to 28% in 2005.
2004-2007 Government spending increased
by 7% p.a.
Taxation rates reduced (CGT 20%, CT
12.5%, Income Tax 20% & 41%)
The main political party returned in 3
successive elections (1997, 2002 & 2007)
Childcare Funding








Equal Opportunities Childcare Programme (EOCP)
EU co-funded 2000-2007
€525m over 7 years
50% capital
34% staffing
16% quality/supports
Created and/or supported 40,000 childcare places
Suceeded by National Childcare Investment
Programme 2006-2010 (NCIP)
EOCP Staffing Scheme





Start-up grant for not-for profit
services
Generally linked to EOCP Capital
Initially 3-year
Extended for disadvantaged services in
late 2004-2007
€37 million in 2007
2005 Announcement of
OMC & ECS




2 bye-elections in 2005
Childcare costs
Early Childcare Supplement (ECS)
Office of the Minister for Children
(OMC)
OMCYA




Founded in 2006 as OMC
(Youth Affairs joined 2007)
Childcare, Childrens Services, Youth
Justice, Youth Participation, Early
Education, Youth work
Childcare Directorate
- ECS
- EOCP/NCIP
ECS






Response to political pressures
Universal Family Benefit
Children under 6
€1,000 p.a. (rose to €1,100)
All parents (MWAHs)
Exportable under EU Regulations
Pros & Cons of ECS
Pros

Supported families with high childcare costs, who also had high housing costs

Supported all families regardless of childcare choices

Preferred approach of the Finance Ministry
Cons

Didn't support ECEC sector

Could be spent on non-childcare expenses

Unlikely to improve access to pre-school among disadvantaged children

Wouldn't facilitate improvement of standards in ECEC sector

Was not the preferred approach of the Childcare Directorate
Birth rate 2002-9
(ECS announced in December 2005....)
Live Births
80000
75000
70000
65000
60000
Live Births
55000
50000
45000
40000
2002
2003
2004
2005
2006
2007
2008
2009
(est)
Community Childcare
Subvention Scheme
2008-2010 (CCSS)






Announced 2007
VFM Review of EOCP
Replaced EOCP Staffing Grant
Focus on disadvantage had been
'uneven'
Increased funding by 50%
“Targeted Universalism”
Irish Economy 2008-2010
(post Celtic Tiger...)



Massive downturn in Economic activity
Tax Revenues back to 2005 levels
ECS targeted in 2008
- rate restored to €1,000 p.a.
- eligibility reduced to 5 years
- administrative savings
- widely expected to be abolished in
2009
ECS to ECCE






April 2009 Budget
ECCE plan presented to Minister for
Children
Finance Minister's Advisor
Minister to Minister
Finance & Education officials
Surprise announcement of Budget
Appeal of the Scheme






Supports children who would not otherwise attend
pre-school
Supports the costs of families who would have used
pre-school
Safeguarded childcare services under severe strain
Maintain employment in childcare sector, retaining
trained/experienced staff
Allows higher standards to be required of
participating services
Better long-term outcomes for all children
Appeal of Scheme to
Finance








Savings
More targeted
Seen as intelligent use of limited resources
Safeguarded capital investment
Maintain employment in childcare sector,
and lessened likely increases in welfare
costs
Support for parents
Benefits all families as an educational
measure
POPULAR – “No brainer”
January 2010




Scheme in operation
80% participation by qualified children
(further 5% in CCSS)
85% (3,800) of pre-schools and
crèches participating (a further 500
applying from September)
Top-up fees not allowed in preschools, scheme is available free to all
children
2010-2012





Scheme to be consolidated
Transitional measures
Improving qualifications of staff
Improving access for Children with
Special Needs
2012 onwards - ?
CETS scheme





Sanctioned earlier this month
Childcare support for students/trainees in
vocational training and education courses
Replaces system of 3 different subsidies
with one capitation (i.e. A free place for
parent)
€20m in 2011 (additional cost is €7m –
using funds which previously paid for CCSS
2008-2010 transitional measures)
To be in place from 30 August 2010
Non-Capital Grant aid to
ECEC services, and ECS
2001-2011
600
500
400
ECCE
300
ECS
Staffing/CCS/CETS
200
100
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Critical Success Factors









Linking policy with credible implementation plan
Demonstrate proposal meets needs that general
public understand and support
Identify where the money will come from (and
why)
Think about how scheme can develop
Know what you'll compromise on, and what you
can't
Understanding Key Deliverables for Finance Ministry
Value for Money
Show immediate ‘return’ to Exchequer if possible
Move quickly!