Funding Childcare in Funding Childcare in IrelandIrelandDarragh DohertyDarragh DohertyOffice of the Minister for Office of the Minister for Children & Youth Affairs Children & Youth Affairs (OMCYA), Ireland(OMCYA), Ireland

Country ProfileCountry Profile

Ireland

Population: 4.23m (April 2006)

Land Area: 68,890 sq km

EU Member State

Number of children birth to six: 418,612418,612 (10 % of population)

Irish Economy 1994-Irish Economy 1994-2007 “The Celtic 2007 “The Celtic Tiger”Tiger” Economic growth – averaged 7% p.a. between 1997 Economic growth – averaged 7% p.a. between 1997

and 2005and 2005

UnemploymentUnemployment: : 13.2% in 1990 13.2% in 1990 4.3% in 20064.3% in 2006 12.5% in 2009 12.5% in 2009

FeFemale labour force participation rate: male labour force participation rate: 1985: 1985: 30%30% 2006: 592006: 59% %

2009: 54% 2009: 54% Net ImmigrationNet Immigration

Impact on Govt PolicyImpact on Govt Policy Debt/GDP ratio declined from 65% in Debt/GDP ratio declined from 65% in

1997 to 28% in 2005.1997 to 28% in 2005. 2004-2007 Government spending 2004-2007 Government spending

increased by 7% p.a.increased by 7% p.a. Taxation rates reduced (CGT 20%, CT Taxation rates reduced (CGT 20%, CT

12.5%, Income Tax 20% & 41%)12.5%, Income Tax 20% & 41%) The main political party returned in 3 The main political party returned in 3

successive elections (1997, 2002 & successive elections (1997, 2002 & 2007)2007)

Childcare FundingChildcare Funding Equal Opportunities Childcare Programme Equal Opportunities Childcare Programme

(EOCP)(EOCP) EU co-funded 2000-2007EU co-funded 2000-2007 €€525m over 7 years525m over 7 years 50% capital50% capital 34% staffing34% staffing 16% quality/supports16% quality/supports Created and/or supported 40,000 childcare Created and/or supported 40,000 childcare

placesplaces Suceeded by National Childcare Investment Suceeded by National Childcare Investment

Programme 2006-2010 (NCIP)Programme 2006-2010 (NCIP)

EOCP Staffing SchemeEOCP Staffing Scheme Start-up grant for not-for profit Start-up grant for not-for profit

servicesservices Generally linked to EOCP CapitalGenerally linked to EOCP Capital Initially 3-yearInitially 3-year Extended for disadvantaged Extended for disadvantaged

services in late 2004-2007services in late 2004-2007 €€37 million in 200737 million in 2007

2005 Announcement of 2005 Announcement of OMC & ECSOMC & ECS 2 bye-elections in 20052 bye-elections in 2005 Childcare costsChildcare costs Early Childcare Supplement (ECS) Early Childcare Supplement (ECS) Office of the Minister for Children Office of the Minister for Children

(OMC)(OMC)

OMCYAOMCYA

Founded in 2006 as OMC Founded in 2006 as OMC (Youth Affairs joined 2007)(Youth Affairs joined 2007) Childcare, Childrens Services, Youth Childcare, Childrens Services, Youth

Justice, Youth Participation, Early Justice, Youth Participation, Early Education, Youth workEducation, Youth work

Childcare DirectorateChildcare Directorate-- ECSECS-- EOCP/NCIPEOCP/NCIP

ECSECS Response to political pressuresResponse to political pressures Universal Family BenefitUniversal Family Benefit Children under 6Children under 6 €€1,000 p.a. (rose to €1,100)1,000 p.a. (rose to €1,100) All parents (MWAHs)All parents (MWAHs) Exportable under EU RegulationsExportable under EU Regulations

Pros & Cons of ECSPros & Cons of ECSProsPros Supported families with high childcare costs, who also had high Supported families with high childcare costs, who also had high

housing costshousing costs Supported all families regardless of childcare choicesSupported all families regardless of childcare choices Preferred approach of the Finance MinistryPreferred approach of the Finance Ministry

ConsCons Didn't support ECEC sectorDidn't support ECEC sector Could be spent on non-childcare expensesCould be spent on non-childcare expenses Unlikely to improve access to pre-school among disadvantaged Unlikely to improve access to pre-school among disadvantaged

childrenchildren Wouldn't facilitate improvement of standards in ECEC sectorWouldn't facilitate improvement of standards in ECEC sector Was not the preferred approach of the Childcare DirectorateWas not the preferred approach of the Childcare Directorate

Birth rate 2002-9Birth rate 2002-9(ECS announced in December 2005....)(ECS announced in December 2005....)

Live Births

40000

45000

50000

55000

60000

65000

70000

75000

80000

2002 2003 2004 2005 2006 2007 2008 2009(est)

Live Births

Community Childcare Community Childcare Subvention Scheme Subvention Scheme 2008-2010 (CCSS)2008-2010 (CCSS)

Announced 2007Announced 2007 VFM Review of EOCPVFM Review of EOCP Replaced EOCP Staffing GrantReplaced EOCP Staffing Grant Focus on disadvantage had been Focus on disadvantage had been

'uneven''uneven' Increased funding by 50%Increased funding by 50% ““Targeted Universalism”Targeted Universalism”

Irish Economy 2008-Irish Economy 2008-20102010(post Celtic Tiger...)(post Celtic Tiger...)

Massive downturn in Economic activityMassive downturn in Economic activity Tax Revenues back to 2005 levelsTax Revenues back to 2005 levels ECS targeted in 2008ECS targeted in 2008

-- rate restored to €1,000 p.a.rate restored to €1,000 p.a.-- eligibility reduced to 5 yearseligibility reduced to 5 years-- administrative savingsadministrative savings-- widely expected to be abolished in widely expected to be abolished in 20092009

ECS to ECCEECS to ECCE April 2009 BudgetApril 2009 Budget ECCE plan presented to Minister ECCE plan presented to Minister

for Childrenfor Children Finance Minister's AdvisorFinance Minister's Advisor Minister to MinisterMinister to Minister Finance & Education officialsFinance & Education officials Surprise announcement of Budget Surprise announcement of Budget

Appeal of the SchemeAppeal of the Scheme Supports children who would Supports children who would notnot otherwise otherwise

attend pre-schoolattend pre-school Supports the costs of families who Supports the costs of families who wouldwould

have used pre-schoolhave used pre-school Safeguarded childcare services under severe Safeguarded childcare services under severe

strainstrain Maintain employment in childcare sector, Maintain employment in childcare sector,

retaining trained/experienced staffretaining trained/experienced staff Allows higher standards to be required of Allows higher standards to be required of

participating servicesparticipating services Better long-term outcomes for all childrenBetter long-term outcomes for all children

Appeal of Scheme to Appeal of Scheme to FinanceFinance SavingsSavings More targetedMore targeted Seen as intelligent use of limited Seen as intelligent use of limited

resourcesresources Safeguarded capital investment Safeguarded capital investment Maintain employment in childcare sector, Maintain employment in childcare sector,

and lessened likely increases in welfare and lessened likely increases in welfare costscosts

Support for parentsSupport for parents Benefits all families as an educational Benefits all families as an educational

measuremeasure POPULAR – “No brainer”POPULAR – “No brainer”

January 2010January 2010 Scheme in operationScheme in operation 80% participation by qualified 80% participation by qualified

children (further 5% in CCSS)children (further 5% in CCSS) 85% (3,800) of pre-schools and 85% (3,800) of pre-schools and

crèches participating (a further crèches participating (a further 500 applying from September)500 applying from September)

Top-up fees not allowed in pre-Top-up fees not allowed in pre-schools, scheme is available free schools, scheme is available free to all children to all children

2010-20122010-2012 Scheme to be consolidatedScheme to be consolidated Transitional measuresTransitional measures Improving qualifications of staffImproving qualifications of staff Improving access for Children Improving access for Children

with Special Needswith Special Needs 2012 onwards - ?2012 onwards - ?

CETS schemeCETS scheme Sanctioned earlier this monthSanctioned earlier this month Childcare support for students/trainees in Childcare support for students/trainees in

vocational training and education coursesvocational training and education courses Replaces system of 3 different subsidies Replaces system of 3 different subsidies

with one capitation (i.e. A free place for with one capitation (i.e. A free place for parent)parent)

€€20m in 2011 (additional cost is €7m – 20m in 2011 (additional cost is €7m – using funds which previously paid for using funds which previously paid for CCSS 2008-2010 transitional measures)CCSS 2008-2010 transitional measures)

To be in place from 30 August 2010To be in place from 30 August 2010

Non-Capital Grant aid to Non-Capital Grant aid to ECEC services, and ECS ECEC services, and ECS 2001-20112001-2011

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

ECCEECS

Staffing/CCS/CETS

Critical Success Critical Success FactorsFactors Linking policy with credible implementation planLinking policy with credible implementation plan Demonstrate proposal meets needs that general Demonstrate proposal meets needs that general

public understand and supportpublic understand and support Identify where the money will come from (and Identify where the money will come from (and

why)why) Think about how scheme can develop Think about how scheme can develop Know what you'll compromise on, and what you Know what you'll compromise on, and what you

can'tcan't Understanding Key Deliverables for Finance Understanding Key Deliverables for Finance

MinistryMinistry Value for MoneyValue for Money Show immediate ‘return’ to Exchequer if possibleShow immediate ‘return’ to Exchequer if possible Move quickly!Move quickly!