14/11/2023
https://www.facebook.com/100093597199782/posts/209701888826383/
🟧‼️📣 PRESS RELEASE 📣‼️🟧
"85% of Childcare Providers Unhappy with Core Funding!" - FECP Survey Reveals
On November 7th, The Federation of Early Childhood Providers (FECP) conducted a survey that received responses from 810 childcare providers. The results indicate that a staggering 85% of providers expressed dissatisfaction with Core Funding. Furthermore, 59% of them are contemplating leaving Core Funding, while 67% believe that the new Department terms have rendered their businesses unviable.
The implementation of the new charted accounts system by the department is expected to exacerbate the already stretched workload, leading to an overwhelming administrative burden. This, in turn, has resulted in significant financial and mental costs for the childcare providers.
Providers have been in touch with their accountants regarding the new accounts system, and it is causing major financial concerns. For small services with 22 children or fewer, the additional costs are estimated to range between 150 and 200 euros per month on top of their existing revenue accounting requirements. This poses a significant issue for smaller services.
On the other hand, larger services, such as those offering after-school care exclusively, have been quoted between 25,000 and 35,000 euros per year to accommodate the new set of accounts. These expenses are in addition to their existing revenue accounting costs.
Accountants are recommending the hiring of a full-time bookkeeper to handle these new requirements on a monthly basis, causing widespread panic regarding financial projections. It is worth noting that all Department of Education-funded schools are obligated to complete these accounts, but we must emphasize that we are private businesses employing staff and providing the infrastructure. This distinction makes the situation very different from that of schools, who receive funding and support for their administrative needs.
Given these challenges, providers are questioning whether the Department of Children will provide a secretary or any form of compensation to alleviate the burden imposed by the new accounts system.
Elaine Dunne asserts that the government's childcare program has failed, with working parents, families, and young children being the primary casualties. Although some aspects of operational planning are commendable, the combination of perilous underfunding and inaction on unworkable policies is decimating independent creche facilities.
According to Dunne, inadequate government funding and excessive bureaucracy have already forced 97 childcare providers to close since March of this year. These factors not only contribute to increased costs but also add to the stress and workload of childcare staff and management.
The FECP, which recently organized a three-day national closure protest, highlights that a staffing crisis is affecting 73% of childcare providers. The Core Funding fee freeze has left many small and medium services struggling. Some services have been stuck in a fee freeze since 2017, while ECCE services have been subjected to a fee freeze since 2010. This disparity places these services at a disadvantage compared to those whose fees are up to date, leading to viability concerns. Resolving this issue promptly is of utmost importance. Industry surveys indicate that an increase in fees is necessary to address inflationary costs and ensure fair compensation for experienced and educated staff members in creche and afterschool facilities.
Established in 2019, the FECP represents 1,456 independent early childhood care services throughout Ireland. These services account for 20,000 jobs for caregivers and provide support to 90,000 children and families.
