Emergency funding model for period of Covid-19 restriction
Ireland, and indeed the world, are experiencing unprecedented times as a result of the Covid-19 pandemic. Our economy has significantly slowed and we are anticipating an economic recession, if not a depression. As our government works towards re-opening our economy, there is increasing recognition of the need for sufficient high quality ECEC/SAC services to support this agenda.
Re-opening ECEC/SAC services is also crucial for children who need interactions with their peer group to support their holistic development. These are scary times for children and returning to routines that are as normal as possible will help reduce the stress that they are experiencing. ECEC/SAC settings will also provide safe environments for children who are experiencing significant trauma in their homes. The professionals in these environments are well qualified to support the children make sense of the current public health crisis and to create stability for them.
In order for ECEC/SAC services to re-open, providers must be assured that they will be appropriately funded to cover all the costs of the service. Prior to the Covid-19 crisis, attracting and retaining qualified staff was a significant problem in the ECEC profession. Staff turnover rates in full daycare services were at an average rate of 40%. This was never an acceptable rate and it is even less so in the current climate where it is important to create stability for children and to reduce the staff changes within ‘play-pods’ for infection control purposes.
The 30,000 people on the streets of our capital, in February, gave a strong indication of the crisis in the ECEC/SAC professions and this current public health emergency has significantly amplified this crisis. Unprecedented and bold actions are now required to resolve issues relating to remuneration, sustainability and affordability.
The following paragraphs outline the conditions and principles required for the re-opening of ECEC/SAC services from June 29th:
* the loss of families due to parent fears of Covid-19 and job losses
* insufficient staff availability
Overarching principles of the emergency scheme:
ECEC/SAC provider must not shoulder any financial loss as a result of opening their setting to deliver this vital public service.
All staff must be appropriately remunerated to encourage them to return to work and for the additional work required of them to maintain a safe and child-friendly environment.
This is a temporary measure to ensure that all services are sustainable for the duration of the crisis and that staff are retained and remunerated for their role.
This emergency funding model will be reviewed with representative organisations and stakeholders from the ECEC/SAC professions by August 4th and appropriate revisions will be made to incorporate re-opening of pre-schools and for continued sustainability all ECEC/SAC services.
.
Following the Covid-19 crisis there needs to be a review of the temporary measures introduced and positive aspects are to be considered in the context of developing a new model of early years funding. Any new model of early years funding must be researched, discussed and negotiated with relevant stakeholders including government, unions, representative organisations, etc. The new model must be achieved through consensus and co-design.
Re-opening ECEC/SAC services is also crucial for children who need interactions with their peer group to support their holistic development. These are scary times for children and returning to routines that are as normal as possible will help reduce the stress that they are experiencing. ECEC/SAC settings will also provide safe environments for children who are experiencing significant trauma in their homes. The professionals in these environments are well qualified to support the children make sense of the current public health crisis and to create stability for them.
In order for ECEC/SAC services to re-open, providers must be assured that they will be appropriately funded to cover all the costs of the service. Prior to the Covid-19 crisis, attracting and retaining qualified staff was a significant problem in the ECEC profession. Staff turnover rates in full daycare services were at an average rate of 40%. This was never an acceptable rate and it is even less so in the current climate where it is important to create stability for children and to reduce the staff changes within ‘play-pods’ for infection control purposes.
The 30,000 people on the streets of our capital, in February, gave a strong indication of the crisis in the ECEC/SAC professions and this current public health emergency has significantly amplified this crisis. Unprecedented and bold actions are now required to resolve issues relating to remuneration, sustainability and affordability.
The following paragraphs outline the conditions and principles required for the re-opening of ECEC/SAC services from June 29th:
- DCYA to pay a wage subsidy to facilitate a wage rate of minimum €15ph, plus an amount to cover employer’s contribution PRSI, holidays, etc. This is for every member of the staff team including the sole trader provider and ancillary staff.
- Providers will reduce parent fees proportionately to reflect the reduction in overheads arising from the wage subsidy. Reduction will need to be cognizant of increased consumable and wage expenditure related to Covid-19 e.g. cleaning materials, additional staff to support cleaning regime, etc. The level of fee reduction will be locally determined as costs vary for providers and a centrally determined reduction rate will not capture varying costs.
- DCYA to contribute balance of fees for parents on targeted subsidy schemes. This DCYA contribution will also be at reduced rate due to reduced overheads arising from wage subsidy.
- All universal subsidy schemes to be postponed for the duration of this Covid-19 public health crisis. Parent fees will instead be subsidised through the reduction in fee costs arising from the wage subsidy. DCYA are effectively subsidising the cost to all parents through an alternative mechanism.
- Parent fees charged at a rate to cover overheads (which may include top up to wage subsidy for senior staff) and to facilitate generation of a reserve up to the value of approximately €3000 per month during this emergency funding period. This reserve may be used at the discretion of the provider.
- Income will be derived from wage subsidy and proportionately reduced parent fees (subsidised by DCYA as appropriate).
- DCYA to pay a reasonable PSP for this temporary emergency scheme.
- Re-opening grant to be paid to all services to cover non-consumable capital expenditure required to meet local interpretation of public health guidelines.
- DCYA to subsidise ‘virtual’ places if capacity is reduced as a result of:
* the loss of families due to parent fears of Covid-19 and job losses
* insufficient staff availability
Overarching principles of the emergency scheme:
ECEC/SAC provider must not shoulder any financial loss as a result of opening their setting to deliver this vital public service.
All staff must be appropriately remunerated to encourage them to return to work and for the additional work required of them to maintain a safe and child-friendly environment.
This is a temporary measure to ensure that all services are sustainable for the duration of the crisis and that staff are retained and remunerated for their role.
This emergency funding model will be reviewed with representative organisations and stakeholders from the ECEC/SAC professions by August 4th and appropriate revisions will be made to incorporate re-opening of pre-schools and for continued sustainability all ECEC/SAC services.
.
Following the Covid-19 crisis there needs to be a review of the temporary measures introduced and positive aspects are to be considered in the context of developing a new model of early years funding. Any new model of early years funding must be researched, discussed and negotiated with relevant stakeholders including government, unions, representative organisations, etc. The new model must be achieved through consensus and co-design.