Fianna Fáil Policy: Accessible, Flexible and Affordable Childcare in Ireland by Fianna Fáil Galway

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

A GLOBAL VISION FOR EARLY CHILDHOOD AND FAMILY POLICY Dara Calleary TD Robert Troy TD SPOKESPERSON ON JOBS, ENTERPRISE AND INNOVATION

SPOKESPERSON FOR CHILDREN

APRIL 2015

ACCESSIBLE, FLEXIBLE AND AFFORDABLE CHILDCARE IN IRELAND

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

FOREWORD As Fianna Fáil Spokesperson for Children, I have prepared this policy strategy for the development, improvement and sustainability of early childhood care and education in a way that will benefit children, parents and the early childhood sector during in the next Programme for Government. Given that child poverty levels in Ireland have doubled from 6% in 2008 to 12% n 2013, it is clear that current policy is failing children. In response, this document puts forward a global or inclusive approach to child and family policy in Ireland. During 2014, I consulted widely with both parents and stakeholders and this proposal aims to reflect the views, opinions and vision for early childhood care and education in Ireland as proposed by people most affected by child and family policy. I agree with the widely held recognition of quality early childhood care and education as an early intervention mechanism that is central to positive learning and development outcomes for children. I am also mindful of how poverty in the wider perspective of a child’s life can inhibit children’s life chances. As part of the coordination of services for children, early intervention supports for the child, family and social system need to be provided where necessary. This includes the availability of accessible, affordable childcare as a fundamental of family supports that underpin workforce participation and economic development and growth. These two areas are not mutually exclusive; they are dependent on cross departmental policy responses that address the needs of children, families, educators and service providers. I put forward this ‘enabling strategy’ to provide a framework to guide policy developments in this most crucial phase of our educational system. This strategy has the potential to bring about the much needed and long awaited recognition, equality, co-ordination and cohesion to the delivery of child and family supports in Ireland and acknowledges Fianna Fail’s commitment to support and strengthen these fundamentals and ensure that children receive a priority focus in the next Programme for Government.

Robert Troy TD

Fianna Fáil Spokesperson for Children

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

INVESTING IN CHILDREN –

ACCESSIBLE, FLEXIBLE AND AFFORDABLE CHILDCARE IN IRELAND KEY PROPOSALS: Childcare Affordability: Fianna Fáil will introduce a Progressive Childcare Support Credit for working parents so that good quality, affordable childcare is available to all. Supporting Parental Care: Fianna Fáil will extend Maternity Leave to 30 Weeks and introduce joint transferrable paid parental leave measures so that parents, if they choose, can spend longer with their new born without worrying about its effect on their career prospects or their ability to earn a living. Quality Early Education: Fianna Fáil will support the provision of high quality early childhood care and education for all by raising quality standards through increased investment in a graduate-led, professional early childhood services. Closing the Gap: Fianna Fáil will increase early education services to overcome the skills gap between the most deprived and the most advantaged children before they start school, by increasing the

number of quality pre-school places for children from disadvantaged familiesand increasing support for effective Early Intervention Initiatives. Early Intervention and Development: Fianna Fáil will make additional childcare supports accessible to families of under-3s, including measures to support the early education and development of young children. Expanding Inclusion: Fianna Fáil will ensure all children have access to inclusive early education and care, supporting the integrationof children with disabilities and special educational needs into mainstream early childhood services and expanding the ECCE scheme for children with SEN. Universal Second Free Pre-School Scheme: Fianna Fáil will introduce a Second Free Pre-school Year for all children aged 2 to 3 years old to give children and families access to early education services and supports right from the start of a child’s life.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

will introduce measures that improve the quality, capacity and sustainability of early childhood care and education, ensuring that early childhood professionals are paid a living wage, increasing quality and access to pre-school for children from low-income families and encouraging greater participation in mainstream crèches and pre-schools for children with special needs. Finally, we will expand the current free pre-school year to children under 3 years of age, to give all children a head start in life.

HOW IS CHILDCARE PROVIDED IN IRELAND? INTRODUCTION Fianna Fáil believes that prioritising investment in early childhood care and education will yield unparalleled return for Irish society. Our proposed investment in childcare supports serves a multi-dimensional function, ensuring the well-being and global development of children from an early age as well as encouraging equal labour force participation of men and women and reducing the cost of childcare for working families. The current costs of childcare pose an unbearable burden on young families. Across the European Union, childcare costs around 12% of a family’s income on average, while in Ireland it accounts for 35%. Pre-school care for two children – on average €200 per week – is not manageable for many working families. These costs are disproportionately impacting on working mothers, forcing many to manage their working hours to reduce their childcare bills. This has a knock-on effect for their pay and career progression and is reflected in the low labour market participation rates for mothers with pre-school aged children.

CHILDCARE ARRANGEMENTS Childcare provision in Ireland encompasses a mixed model of provision with services delivered through the family, the community, private and public sector. There is a wide diversity of childcare arrangements in Ireland. The predominant form of childcare is care by parents themselves at 58%. For parents that engage in some form of childcare, grandparents or close relatives are the predominant form of non-parental care at 59%, with 25% being cared for by childminders and 25% using a crèche. However non-parental childcare is very important for working parents, with 68% of couples with pre-school children where both are working full-time use such care. In the case of lone parents who are working full-time, 60% use non-parental childcare. Figure 1: Main Childcare Arrangements for Children

Fianna Fáil has a number of measures for supporting and enabling parents with young children. Our Childcare Support Credit will make flexible, quality childcare affordable for all, assisting families in the care and education of pre-school aged children. We will also enable parents to spend more time with their new born children, expanding Paid Maternity (Parental) Leave and allowing parents to transfer their paid leave between both mothers and fathers (guardians).

The proportion of pre-school children in formal, centre-based childcare is very small by international comparison. This is especially true of the 0-3 age cohort, for who the predominant form of care is by a relative or childminder outside of a centre-based setting.

Effective early education has a significant role to play in improving outcomes for all children. We

However informal childcare, particularly grandparents (who provide care for provide care for 49

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

per cent of children aged 4 and under), also tends to be relied upon for the 3-4 age group, who have the highest rate of participation in centre-based based due to the state funded free pre-school (ECCE) year. Hence, even where there is direct public provision of childcare, informal care is relied upon by parents that are working full time because suitable formal care is not available for enough hours or is too costly for the hours that parents work.

AFFORDABILITY OF CHILDCARE For many families the cost of childcare for pre-school aged children (0-5) is very significant and in many cases poses an unbearable burden on their budgets. The Key Data on Early Childhood Education and Care in Europe 2014 report is the latest in a long list of reports that casts a worrying focus on the affordability and accessibility of childcare in Ireland. This report confirms that at all income levels, the cost of childcare in Ireland is the most expensive in Europe. For the different income levels childcare costs in Ireland take up between 24% and 41% of a young family’s budget. The evidence on the cost of childcare suggests that the average weekly expenditure is €133 per week nationally, rising to €200 per week in the Dublin Region. The average annual cost of fulltime childcare for two-child family is €16,500 according to a national research (Indecon, 2013). Table 1: Cost of Childcare in Ireland

Average weekly expenditure (€) on paid childcare 2013 Pre School Children Paid relative Childminder/Aupair/Nanny Crèche/ Montessori Total

childcare costs are high in most Member States across the European Union, they are offset by similarly high childcare benefits. However this is not the case in Ireland, where most families with young children (0-3) receive no financial assistance with childcare costs, other than Child Benefit, which has been cut significantly in recent years. In Ireland, during the significant gap between the cessation of paid maternity leave (26 weeks) and the commencement of the Free Pre-School Year (earliest 3 years and 2 months), there are no tax incentives or costs relief available to help working parents meet childcare costs. Currently, this is a massive disincentive for parents to return to paid employment and is an enormous barrier to women in particular. Because the greatest weight of caring responsibilities still falls upon women, these costs are especially reflected in the labour market participation rates for mothers with pre-school aged children. Only 52% of women with children aged 4-5 years old are in employment, compared to 59.3% for mothers with children aged 6 and upwards and 86% for women without children. Childcare costs are a significant factor forcing women out of the labour market in Ireland. The Eurobarometer survey (2014) found that Irish respondents at 52% were the most likely in the EU to cite the inaccessibility of childcare as the greatest obstacle to reducing gender inequality and increasing the number of women in the labour market. The EU average was 36%. These impressions reflect the fact that Irish childcare costs are the highest in the EU. Figure 2: Employment rates of couples (with/without children) and lone parents aged 20-44 by age of youngest child, 2013

€118 €138 €114 €133

Source: Indecon internal estimates for 2013 based on analysis ofQHNS and inflation data

The report carried out by Indecon International Economic Consultants in 2013 showed that barriers to employment as a result of childcare costs are severe among lower income groups, with 56% prevented from looking for a job or working additional hours due to cost of childcare constraints. As well as this, the report found that 26% of parents were prevented from returning to work or training because of unaffordable childcare arrangements. Childcare for under-3s in Ireland remains among the most expensive in Europe and the OECD, amounting to more than 50% of the net income of some families. It is important to note that while

Family status No children Youngest child aged 0-3 Youngest child aged 4-5 Youngest child aged 6 or over Total

Men 86.2 81.9 76.2 80.2 81.9

Women 85.6 59.5 51.7 59.3 63.0

Source: CSO 2015

The increase in childcare costs, since 2011 especially, has a huge effect on working mothers, forcing many to manage their working hours to reduce crèche and pre-school bills. This has a knock-on effect on the pay and career progression of women. Most recent figures show the pay gap between men and women in Ireland has widened in recent years, with women earning 14.4% less than men for their work. It is no coincidence that gender inequality has widened under this government, as the cost of childcare has become increasingly less affordable for parents of young children.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

The single greatest policy initiative we could take to improve Ireland’s gender equality would be to address childcare costs. Fianna Fáil believes that investment in this area is required as a matter of urgency. Any solutions and responses need to be cross cutting and diverse to enable parental choice and flexibility depending on their family circumstances. This includes measures such as parental leave policies, tax relief, lower childcare costs and access to flexible, effective early education and care arrangements for children.

CHILDCARE CHOICES

GIVING PARENTS CHILDCARE CHOICES Given the diversity of families and childcare arrangements, we need build an early childhood care and education system with the flexibility to support a mix of circumstances and demands. In particular, we believe that the best way to support the diversity of circumstance and parental choice is to develop a system of childcare subsidies which does not aim to corral all families into a one-sizefits-all model of childcare. Our system of tax credits and supports for childcare aims to enhance the affordability for all childcare arrangements, regardless of whether the care is undertaken by parents themselves, by relatives, by childminders or in a centre-based setting (e.g. a crèche or a pre-school). Any solution to the childcare crisis in Ireland must take note of the fact that, for the great majority of working parents with young children, the current state-funded provision of pre-school (ECCE) for 3-4 year olds does not provide much of a resolution to their childcare arrangements. A central issue that gets lost in the policy debates surrounding the affordability and accessibility of

childcare is that pre-school education, as it currently exists in Ireland, is a small proportion of overall childcare provided to children, especially for families with two parents (guardians) working full-time (35 hours) or extended part-time (25 hours). The Early Childhood Care and Education (ECCE) Scheme currently only funds 3 hours a day, 5 days a week for 38 weeks in a year. Outside of this time, working parents have to pay to have their children minded in either centred-based care setting (i.e. a crèche or nursery) or to have their children minded by a childminder or relative. Informal carers, particularly childcare by grandparents, is relied upon heavily in Ireland, when suitable formal care is not available or is too costly for the hours that parents work. It is estimated that around 75 per cent of children aged 4 years or under use some type of informal non-parental care as predominant form of care. Solely funding a second free pre-school year for children – as many have proposed – will not solve the childcare crisis that many parents face. It will not do much to enhance the affordability of care for pre-schoolers for parents that are working full time, as these children will still have to be cared for in the hours other than the 3 hours provided for by the Free Pre-School Year. While Fianna Fáil will increase investment in the number of hours of state-funded pre-school for younger children aged 2-3 (progressively leading to a second ECCE Year for children) this is will be an early education initiative, to enable to early intervention and early development of children. However pre-school should not be considered a replacement for childcare affordability. The Childcare Support Credit is required in addition to greater investment in early childhood care and education, to ease the cost burden of all childcare on working parents, especially those working full-time and availing of upwards of 25 childcare hours per week. Although there many developmental benefits for young children (1-3 years) from time spent in formal early childhood settings, there is also potential for negative effects (such as the emergence of behavioural problems later in childhood) if the care is of low quality (EPPE, 2004). These risks are greater the closer to birth the child commences early childhood care and education and the longer the time the child spends in formal care (NICHD, 2006; APC, 2014). From the point of view of early childhood care and education, we believe it is necessary to focus on improving the quality of education and care provided to children under the current ECCE and

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

Community Childcare Schemes, investing in the capacity of existing providers and improving the inspection system for early childhood services before the ECCE scheme is expanded to provide for a second year for children aged 2-3. Given these conditions, Fianna Fáil believes that parents and guardians are best placed to choose the childcare arrangements that are most suitable and appropriate for their children. Our system of Childcare Support Credits will support parents in their childcare choices. If parents choose to have their children cared for by a relative, a childminder or in a centre-based setting, such as a crèche, they should be supported in this choice.

The extra childcare support is aimed at helping parents cope with the cost burden of all childcare. It does not aim to supplant early childhood provision, but to enhance the affordability for parents of the costs of childcare for children outside of the existing ECCE provision and the future ECCE provision. Barriers: › The cost of childcare is crippling for many working families › Childcare costs are most severe among lower income groups › The high marginal costs of childcare are a disincentive to participate in employment for many parents of young children › Childcare costs are exacerbating gender inequality as the care and cost burden falls most heavily upon mothers

CHILDCARE SUPPORT CREDIT Fianna Fáil will introduce a Childcare Support Credit targeted at low and middle income families. The Childcare Support Credit has three main goals:

AFFORDABLE AND FLEXIBLE CHILDCARE – FIANNA FÁIL PROPOSALS UNIVERSAL CHILDCARE SUPPORT It is no surprise that parents find the decision about the best care for their child after they return to work difficult and stressful. Indeed the discussion and debate about the benefits of centre-based care (e.g. in a crèche, nursery, Montessori or pre-school) versus care in a home-based setting (e.g. by relative or childminder) is often inflammatory and politicised. Many commentators and groups are critical of the idea of a tax credit or subsidy for childcare, arguing that it encourages parents to place their children in informal childcare arrangements, such as by having their child minded by a relative or a childminder. However Fianna Fáil believes that parents are best placed the make the choice about whether they want their children under-3 years of age cared for in a centre-based setting or alternatively in a home-based setting. By providing a Childcare Support Credit, we will allow parents to choose what is best for their child.

› To Ease the Cost of Childcare for Working Families › To Enable all Parents to Afford Good Quality Childcare › To Facilitate Parents of Young Children to Participate in Employment This measure is a tax credit to support hard pressed working families to manage the costs of childcare. The Childcare Support Credit will cover 20 per cent to 40 per cent of families’ childcare costs, depending on their income. Parents will be responsible for choosing the childcare arrangements and type of childcare provider, that best suit their and their children’s needs. While making childcare more affordable for working families, it is anticipated that the Childcare Support Credit will increase under- and un-employed parents’ participation in employment. For instance in a study by Indecon International Economic Consultants , 57% of people surveyed felt that a childcare tax incentive would enable parents to increase the number of hours worked among those who are currently employed and 59% of respondents felt that the tax incentive would increase unemployed parents’ participation in employment (Indecon/ Ipsos MRBI 2013). Providers of childcare will have to be registered with Túsla, the Child and Family Agency in order for parents to be eligible to receive a tax credit. In terms

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

of informal care, childcare costs incurred by paying a relative to look after one’s child are also eligible for a tax credit provided the relative is registered as a childminder. All childcare providers will have to be tax compliant and registered with Túsla to be eligible. However, it is not anticipated that this will discourage small-scale care arrangements, such as childcare by relatives or neighbours as the turnover or costs associated with this childcare will not often go beyond €15,000 per annum. While this sum would have to be declared for tax purposes, it is below the amount that providers currently have to pay tax on, so should not act as a disincentive for informal providers to be tax registered. The Childcare Support Credit will be allocated on the basis of the income of one parent – the designated Primary Care Giver, which is currently established for tax purposes at birth cert registration. The designated recipient of the Childcare Support Credit will have to work a minimum of 25 hours per week to be eligible to participate in the scheme. The support credit is progressive, based on three income bands:

Childcare Support Credit - Band A Annual earnings up to €40,000 a year Working minimum 25 hours or more per week 40% support up to a maximum of eligible spend of €5,000 per child

Childcare Support Credit - Band B Annual earnings of between €40,000 and €50,000 a year Working minimum 25 hours or more per week 30% support up to a maximum of eligible spend of €5,000 per child

Childcare Support Credit - Band C Annual earnings of between €50,000 and €60,000 a year Working minimum 25 hours or more per week 20% support up to a maximum of eligible spend of €5,000 per child Under this scheme, a parent earning €35,000 will receive roughly €2000 per annum subsidy support towards their childcare costs, while a parent earning €45,000 (either married or single) can expect about €1,500 (see Appendix 1 for representative budgets). Furthermore the Childcare Support Credit is a positive tax subsidy, meaning that for parents who do not pay enough tax to avail of the full tax credit return (e.g. a lone parent earning between €30,000

and €33,000), they will receive a cash subsidy payment for the balance (which could be up to a maximum of €2000).

EXPANSION OF PARENTAL BENEFIT AND LEAVE ENTITLEMENTS Fianna Fáil will extend Paid Maternity Leave (renamed Paid Parental Leave) from 26 to 30 weeks, so that parents, if they choose, can spend longer with their new born without worrying about its effect on their career prospects or their ability to earn a living. In Ireland there is a significant gap between the cessation of Paid Maternity Leave (26 weeks) and the commencement of the Free Pre-School Year when a child is at the earliest 3 years and 2 months. The progression of this policy would have a complementary effect on areas such as parental choice, work life balance and child well-being. The extension of Paid Maternity Leave would minimise the need and cost of childcare in the child’s first year and allow young children to spend the crucial first year of life in parental care. While many families like the idea of their child being cared for by its parents for the first year, some mothers are apprehensive about taking their full leave for career purposes or other reasons. In conjunction with extending the paid leave period by one month (to 30 weeks), Fianna Fáil will introduce legislation allowing for the sharing of paid and unpaid leave between mothers and fathers (or between two guardians), for parents that choose this option. For many parents working full-time it will be more manageable to share leave from their career, rather than necessitating one parent (the mother) to take the full period of paid leave to avail of the benefit. Evidence from the most recent Growing Up in Ireland Report which focussed on mothers return to work and childcare choices for infants in Ireland (2013), suggests that paid maternity leave is an effective instrument influencing the duration of sole parental care. The report suggests that the extension of paid maternity leave would be a successful policy strategy in promoting and extending parental care in the first year of a child’s life.

MOVING TOWARDS SHARED PARENTAL LEAVE Ireland is one of the few countries that does not offer fathers some form of paternity leave on the birth or adoption of a child. The Growing Up in Ireland Report which focussed on mothers return to work and childcare choices for infants in Ireland (2013) revealed that take up of unpaid parental leave by fathers, was very low.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

Fianna Fáil proposes a Joint Transferable Paid Parental Leave Plan, based on existing maternity leave, without compromising any of its benefits. In opposition, we have already brought legislation forward in this regard through the Parental Leave Bill 2013 which has passed through the second stage of the Seanad. The purpose of this Bill is to provide for both maternity and paternity leave for parents of a new born child. It seeks to amend Part II of the Maternity Protection Act 1994 to provide an entitlement to maternity or paternity leave after the birth of an employee’s child. The provides that a pregnant employee and the father of that pregnant employee’s child shall not be permitted to take maternity or paternity leave at the same time but that they shall be permitted to share between them the minimum period of maternity or paternity leave. This practice is currently in effect in many other EU countries, and is one which was highlighted by Ireland’s Equality Authority, an independent body set up under the Employment Equality Act 1998, believing that a mother should have the right to assign a portion of her maternity leave to her spouse or partner, thereby providing greater flexibility for the family in making childcare arrangements.

Barriers: › Lack of access to early childhood education and care for children from low-income backgrounds › Incomplete geographical coverage of Community Childcare Providers across many areas Investing in early childhood care and education is critical for giving children for lower socioeconomic circumstances an equal start at the beginning of primary school and ultimately for enhancing equality of opportunity in society. The National Early Years Access Initiative Study of Child Outcomes in Pre-school (2014) is of particular national relevance as it provides some of the first evidence available on what determines child outcomes. The study highlighted that targeting disadvantage should be complementary to universal provision and that a failure to target additional resources at those who are most disadvantaged is unlikely to disrupt the social and economic disparities caused by unemployment and poverty. Without intervention to provide a wider set of supports to parents so that children achieve better outcomes, these gaps are likely to persist through primary and secondary school and possibility into adulthood. The highest rate of return in early childhood development comes from investing as early as possible, from birth through age five, in disadvantaged families. Starting at age three or four is too little too late, as it fails to recognise the impact of the home environment. Direct i nvestment in early childhood education is complemented by investment in parents and family environments.

CHILDCARE FOR LOW-INCOME FAMILIES PROGRESSIVE CHILDCARE Fianna Fáil believe that family access to quality, affordable childcare, has not only major positive impacts on a child’s future educational and life chances it enables the financial and social mobility of the family through employment. Fianna Fáil will expand quality early education provision and childcare for children from low-income and disadvantaged families.

The current provision of community provided childcare is inaccessible for many low-income families, even if they are eligible to participate in the Community Childcare Scheme. The impact of poverty in the sense of the child’s environment outside the pre-school system – welfare dependency, mental health issues and mothers’ well-being – are equally crucial to positive life outcomes.

EXPANDING COMMUNITY CHILDCARE FOR CHILDREN FROM LOW INCOME FAMILIES While the Community Childcare Subvention (CCS) scheme is an important foundation for a proportion of low-income families, it is only available for those who live close to a community service that participates in the scheme. CCS is limited by the incomplete distribution of Community Providers across the country, with many areas having no Community Childcare Providers.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

We believe that a child’s life-chances should not be determined by their family income or where they live. To increase the access of all low-income children to the Community Childcare Scheme, Fianna Fáil will engage a significant investment to widely expand the accessibility community provided childcare services, and the availability CCS Scheme, throughout the country with particular focus on areas that are under-served by community services at present. In order to accelerate the accessibility of childcare for low-income families, we will allow participants on the CCS scheme to take-up care places in private provider facilities. This will involve an adjustment to the Community Childcare Subvention scheme to enable children to access the programme in private childcare services where no community places are available, increasing accessibility to subsidised childcare for eligible parents. This move will rapidly improve the accessibility of subsidised childcare for low income families in geographical areas where service gaps exist. It will also strengthen the sustainability of private childcare services and improve the integration of children from different socioeconomic circumstances. We will put the investment in place to expand the current programme by 22%, covering an additional 5,500 children from low-income families. This is an essential significant investment in early intervention for disadvantaged children with the aim to give all children an equal start at the beginning of primary school. For instance, research from the Growing Up in Ireland Study (2013) and the National Literacy and Numeracy Strategy (2011) has shown the vocabulary of 3 year olds from professional families to be double that of 3 year olds from disadvantaged backgrounds, reflecting greater exposure to oral language. Targeted early years supports for disadvantaged children can make a big difference, having a positive impact on their cognitive development and language skills and making them equal to children from more privileged backgrounds before they begin primary education.

EARLY CHILDHOOD EDUCATION – FIANNA FÁIL PROPOSAL INTRODUCING A SECOND FREE PRE-SCHOOL YEAR Fianna Fáil believes that quality early childhood education is as essential for a productive 21st century workforce as roads or the internet; investing in it grows the economy.

More importantly, quality early education benefits children of all social and economic groups. As a party, we are fully committed to increasing investment in the Early Education sector with the goal of expanding both early education programmes for children younger children under 3 years of age. Barriers: › Underinvestment in the early childhood sector leading to varying levels of quality provision › Lack of practical implementation of early childhood curriculum and quality frameworks › Weak oversight and system of inspections of early childhood services In government we will expand the current ECCE Scheme that Fianna Fáil introduced in January 2010, to include a Second Free Pre-school Year for children aged 2-3 years. There is undeniable evidence that children who receive quality early education arrive at school ready to learn and they do better in school. Early pre-school education before age 3 has particular benefits for children with developmental delays, who are generally diagnosed earlier and require fewer special education classes if they receive early intervention. It is anticipated that both quality and capacity improvements in the Pre-school sector will take one to two years to properly implement, so Fianna Fáil proposes to expand the ECCE scheme on a phased basis, beginning in Year 2 by rolling it out to children with disabilities and special educational needs. In Year 3 we will fully roll-out a Universal Second

10 Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

Free Pre-School Year to children aged 2 to 3 years old. This will include early education for 3 hours per day for 38 weeks. However, at present, the childcare sector does not have sufficient quality, capacity or inspection oversight to support a roll-out of a second ‘Free’ Early Child Care Education Year. In government, we will address these three inter-linked structural factors, before we expand the ECCE Scheme to cover a second free preschool year. Firstly, providers are already stretched to the pin of their collars in terms of the resources they receive to operate the ECCE scheme, which has been cut significantly in recent years. Secondly, while the quality of pre-school providers has increased very substantially over the last number of years, there are still quite large variations between providers in terms of quality of care and education standards and in terms of professional-led provision. Finally, the inspection system for the State’s 4,500 preschools – currently operated by the Child and Family Agency – is not robust enough to identify services which pose risks to the health and welfare of children and has massive oversight gaps across many regions.

While research has highlighted the importance and benefits of inclusion it has also identified numerous barriers which have to be overcome for inclusion to be successful. There is evidence that children with SEN are unable to access early childhood services. Research carried out by DESSA as part of its Childcare Inclusion Programme, revealed that 21% of services taking part in the research had previously turned away a child with special educational needs from their service. Reasons given included accessibility, inability to meet the child’s specific needs and lack of training. Despite the issue of children with special needs featuring in the White Paper on Early Education

Fianna Fáil believes that we first need to prioritise addressing these concerns about the Quality, Capacity and Inspection of Pre-school Services before we roll out the second ECCE Year for a further cohort of children under 3 years of age. This will involve heavy investment in the sector directly and in government agencies that regulate the sector.

EXPANDING INCLUSIVENESS AND IMPROVING EARLY EDUCATION FOR CHILDREN WITH SPECIAL NEEDS Fianna Fáil proposes that every child with a special educational need should be enabled to access early childhood care and education services and provided education in integrated and inclusive environments, rather than specialised settings, unless it is not in the best interests of the child. Barriers: › Lack of National Inclusion Plan for the early childhood sector for children with disabilities or special educational needs (SEN) › No specialised staff training or targeted supports for children with SEN › Absence of a second, free pre-school year for children with SEN to facilitate school preparation

in 1999 and an overwhelming case for early intervention, there is still no national plan for children with special needs under four years old. In 2006, the National Council for Special Education produced an implementation plan for the EPSEN Act, 2004 but at present, implementation has been deferred. Children with special educational needs face a huge challenge in availing of a pre-school education which is tailored to suit their individual needs. Mainstream early childhood services do not have appropriate funding or supports to provide equality of opportunity for children with special needs. Early childhood staff lack specialised training and the absence of a specific inclusion policy or guidelines for early childhood is a significant barrier to the realisation of inclusive practice in mainstream early childhood services. At present, supports for children with special needs are largely at the discretion of the local HSE resulting in ad-hoc levels of service across counties and regions.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

supports and a longer preparation period prior to starting school. This model will place a particular emphasis on transitional arrangements for children with special needs from pre-school to primary school.

ENABLING THE EARLY CHILDHOOD WORKFORCE

The Pobal Annual Sector Survey 2013 estimates that 45% of all early childhood services have at least one child with a diagnosed disability. When the substantial number of children who do not have a diagnosis are added to this, the percentage is undoubtedly much higher. It is estimated that approximately 6,392 children with disabilities are in attendance across all early childhood services nationally (Pobal, 2013). Either parents or service providers are expected to fund the additional cost of employing a special needs assistant as required. This can act as a barrier to entry to the universal free pre-school year for some children. In order to up skill the early childhood workforce to cater for the inclusion of children with SEN, Fianna Fáil will support the roll out a Trainer of Trainers Programme to support the national delivery of the Level 6 certificate in Inclusive Care and Education developed by Mary Immaculate College, Limerick and accredited by Department of Education. Fianna Fáil will establish a SEN Support Fund for ECCE providers to enable early childhood services to provide fully inclusive opportunities for all children. This will assist providers in providing inclusive ECCE for children with SEN, giving them adequately resources to support children to access both longer periods of pre-school education (maximum 2 years) and to access for Special Needs Assistant supports. The fund will also support the up-skilling and training of staff in caring and educating children with SEN. This fund could be accessed by parents locally through the City/County Childcare Committee structure. Acceptance of increased capitation would require the employment of specialist support personnel and the provision of an individual education plan (IEP) for each child. This measure alongside the provision of a second full free pre-school year for children with special needs will enable these children to avail of more targeted

The skills and qualifications of adults working with young children is a critical factor in determining the quality of young children’s early learning experiences. The levels of effective early childhood care and education in early childhood services depends on having highly skilled and trained staff, and a high ratio of staff to children. Fianna Fáil will ensure that pre-school educators and carers are adequately remunerated, have professional working conditions and appropriate status as educators, adopting consistent staffing requirements and conditions of employment across early childhood services. Barriers: › Early childhood sector is under-valued and under-resourced › Limited career progression and professional pathways within the sector › No nationally agreed pay scale and low levels of remuneration for the early childhood workforce › Absence of paid professional & graduate development opportunities › Lack of pay for all of the work undertaken, especially in relation to administration and documentation responsibilities Despite the launch of the Workforce Development Plan in late 2010, to date, little has been done to provide professional pathways or financial support to enable the early childhood workforce to engage with an increasingly demanding role as part of a rapidly evolving sector. Addressing issues such a nationally agreed pay scale and appropriate remuneration for level of qualification, would create more attractive, valued, and professional career opportunities. Fianna Fáil has a number of proposals to enable the early childhood workforce to gain recognition and access professional career pathways. 1 Recognition and Remuneration for the Early Childhood Workforce

12 Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

educators working with children aged 0-3 years and in Afterschool services to raise skill levels across early childhood providers › Develop Specialised Level 6 Training for educators working with children with disabilities and special educational needs

ENHANCING CHILD SAFETY THROUGH STRENGTHENED INSPECTION SYSTEM In line with increased investment, Fianna Fáil will revise the conditions of DCYA childcare programme funding contracts as an incentive to raising quality standards for the early childhood workforce as follows: › Introduce Higher Capitation Rates for Level 8 and above qualifications as an incentive for up-skilling › Ensure higher capitation rates are passed on to staff through an agreed salary scale for the early childhood workforce in line with qualifications, levels of experience and job responsibility › Guarantee that the non-contact hours worked by staff to facilitate obligations around record keeping, observations, planning and team meetings as a contractual and paid condition of work are fully remunerated › This investment in staff quality and conditions will be support by the ECCE Workforce Development Capitation from the DCYA

2 Professional Career Development and Pathways for the Early Childhood Workforce In order to develop professional-led early education service for children and to ensure that staff in the ECCE sector have opportunities to up-skill, Fianna Fail will put a Professional Development Fund in place along the lines of the existing Learner Fund, but with greater resources and higher ambitions. It will be designed to: › Increase Higher Level Qualifications from the current 26.7% graduate level workforce (Pobal 2013) to 60% in the duration of the National Early Years Strategy › Develop qualifications and training among

In terms of protecting the health and welfare of children through legislation reform, one of the main concerns is the number of home based childcare services operating outside the inspection process. Fianna Fáil will ensure that there is a stronger regime of inspection in place to identify services that are of concern and pose a risk to the health and welfare of children. Barriers: › Lack of Implementation of Inspection regime passed in 2014 › Inadequate governance oversight and duplication of authority over inspection system with four bodies (Tusla, DES, DCYA and Pobal) involved in early years support › Large portion of childminding sector is unregulated with no inspection over-sight Currently there is cross departmental responsibility for early childhood care and education in Ireland. This can lead to a disjointed approach to strategic development, policy implementation and resource responsibility for early childhood care and education. An OECD Thematic review of early childhood care and education in Ireland concluded that Ireland would have much to gain by taking a unitary approach to all services from one to six years, as is becoming the practice in other OECD countries so as to ensure the well-being and global development of the child. An estimated 20-30,000 paid, non-relative childminders are in operation across the country. Currently, only 250 childminders are notified to the Child and Family Agency and therefore subject to the regulation and inspection process (DCYA, 2013). Many parents are faced with a difficult choice of having to use unregulated forms of childcare, mainly due to cost and accessibility, leaving parents, children and the childminders themselves vulnerable and unprotected. This huge unregulated sector is also having a negative impact on the sustain-

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

ability of regulated childcare services and on their ability to offer competitive rates to parents. As supported by the report of the Expert Advisory Group on the Early Years Strategy (2013), there is a compelling case to amend legislation to include all paid, non-relative childminders. The absence of a properly resourced national implementation plan for the roll-out of training relating to early childhood curriculum and quality framework – Aistear and Síolta – means that these frameworks have made little impact on the quality of provision for young children.

CREATING A SUSTAINABLE QUALITY EARLY CHILDHOOD SECTOR Policy responses need to ensure that the sustainability of services is protected. In line with increased investment, Fianna Fáil will implement cohesive and cross cutting solutions to enhance quality and sustainability in the pre-school sector, primarily reflected in the conditions of State childcare programme funding contracts as an incentive to raising quality standards. Barriers: › Insufficient capitation rates for childcare places › High administrative costs for providers › Increasing administration responsibilities taking up the time of childcare staff › Low pay and High staff turnover › Lack of opportunities for providers and childcare educators to upskill › Commercial rates being levied on publicly-funded service

While the Free Pre-School Year was a very positive step forward, quality across early childhood services remains variable. Measures to improve quality have largely focused on the Free Pre-School Year and on increasing regulation, with almost no support for the development of quality services for children under the age of three years. We will develop a cohesive national plan with ring fenced funding for the roll-out of Aistear training and Síolta accreditation, putting in place the essential practical supports for early childhood educators to provide quality experiences and opportunities for young children. As driver of quality enhancements, we will make compulsory the Aistear curriculum through the Child Care (Pre-school Services) Regulations. As a quality measurement tool, we will ensure the full implementation of Síolta standards as the national standards for early childhood care and education and amend the pre-school inspection process to reflect this.

The governance, funding and regulation responsibilities of managing an early childhood service in Ireland have changed dramatically over the past ten years. From the perspective of the service provider, this has not been matched with increased investment. Service providers are struggling to cover the costs of delivering high quality early childhood education and many do not see their sustainability into the future. The administration of childcare funding schemes is made more complex due to the lack of cohesion and alignment of enrolment dates between National School and Pre-School. This can lead to a missmatch of accessibility for children entering the Free Pre-School Year depending on which month they were born. Early childhood services find it difficult to retain experienced, qualified staff due to the lack of appropriate remuneration and career progression. This in turn has a detrimental impact on the quality of experience offered to young children and on the service as a whole. Early childhood service providers are struggling to sustain services due to a variety of challenges facing the sector at present. This includes insufficient ECCE Scheme capitation rates only paid for 38 weeks of the year and not covering the full duration of staff contracts, local authority rates being applied to

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

early childhood services, administration heavy funding compliance responsibilities and insufficient funding and supports for children with disabilities and special educational needs. Fianna Fáil will increase the capitation grant paid to providers of the ECCE year, aligning funding to the real cost of operating a quality childcare service including administration costs. This will involve an across the board 4% increase in the basic rates paid per child enrolled. However in conjunction with this, we will make funding conditional on providers’ increasing quality in their services and moving towards professionally-led childcare. To do this, we will increase the higher capitation rate (currently €73) by 6% to incentivise providers to increase the level of qualifications and training among their staff and to invest in the pre-school environment for children. The charging of commercial rates are of considerable concern and pose a real threat to the sustainability of early childhood services. Privately managed early childhood services are providing an important educational function on behalf of the state. However Commercial Rates are levied on the sector, which does not make much sense from the point of view of the childcare policy or exchequer costs, as a portion of state-funding is being used to pay rates rather than re-invest in service quality. For example, by including outdoor areas as rateable spaces, this can act as a disincentive to service providers to provide spacious outdoor areas which in turn may assist rising obesity levels in early childhood. In opposition Fianna Fáil has already brought forward legislation to reform this senseless policy and exempt providers from paying commercial rates. In Government we will implement this exemption and allow providers to re-invest the balance. There are a number of other measures Fianna Fáil will take to increase quality and standard of early childhood care and education, prior to expanding the scheme to incorporate a second free preschool year, these include: › Standardisation and alignment of enrolment dates between National School and Pre-School

to enable more efficient management of childcare funding schemes. › Commissioning a Sustainability Review encompassing a cost benefit analysis of how much it costs to run a regulated early childhood service that meets quality standards. This will be used to inform investment responses going forward. › A national rates exemption review for all early childhood services equated to schools and educational establishments (water and premises). › Providing incentives to encourage all paid, non-relative childminders to be included in the pre-school regulations and subject to the inspection and compliance process. As an incentive, childminders will in turn be included in all childcare funding schemes to put all services on an equal footing and to increase accessibility and choice for parents. › Review planning regulations to grant the opening of new childcare services needs to be reviewed and strengthened to prevent the displacement of State funded services. › To ensure that care and education are not split and remain as one sector and to promote policy cohesion, move responsibility for early childhood care and education (0-6 years) to a single Government Department.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

CONCLUSION While the overall costs of Fianna Fáil’s Childcare and Early Education Policy are significant, childcare is an investment with very real economic returns in the short and long-run for both society and individuals. In Ireland, we have substantially under-invested in childcare and education in recent years, with the result being crippling childcare costs for families. This failure to invest sufficiently in early childcare and education short-changes children, families and the tax-payers because the return on investment is greater than almost all other economic development options. Our proposed investment in childcare services will serve a multi-dimensional function in ensuring the well-being and global development of children from an early age as well as encouraging equal labour force participation of men and women and reducing the cost of childcare for working families. Fianna Fáil will introduce a progressive Childcare Support Credit, so that good quality, affordable childcare is available to all. We will enable both mothers and fathers to spend more time at home with their new born without having to worry

about its effect on their career prospects or their ability to earn a living, extending parental leave to 30 weeks and introducing joint paid parental leave. Our investment in progressive early education will support children’s early cognitive, social and emotional development, generating long term returns to the State and society, while facilitating parents’ participation in the workforce. We will close the gap between the most deprived and advantaged children before they start school, expanding the number of places available in Community Childcare by 22%. We will expand inclusion in mainstream early education and childhood care, by supporting the integration of children with disabilities with real investment supports and training for providers, enabling children with SEN a longer time period for school preparation. Finally, we will invest substantially in quality, professional led pre-school education before introducing a Second Free Pre-school Year for all children aged 2 to 3 years old, to give all children and families access to early education and supports from the start of a child’s life.

OTHER POLICY SUBMISSIONS BY DEPUTY ROBERT TROY INVESTING IN TOMORROW:

Discussion Paper on Early Childhood Care and Education (August 2013) http://www.fiannafail.ie/news/entry/10178/

EARLY CHILDHOOD CARE AND EDUCATION: Motion (11th, 12th February 2014)

http://www.roberttroy.ie/early- childhood-care-and-education-motion/

PRE-BUDGET SUBMISSION 2015:

Early Childhood Care and Education (September 2014) http://www.roberttroy.ie/pre-budget-submission-2015-early-childhood

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

APPENDIX Appendix 1 Representative Budgets including new Childcare Support Credit Childcare Support Credit - Examples Married, Single Earner

Married, Dual Earner

Single Lone Parent

Single Lone Married, Dual Parent Earner

€35,000.00 €35,000.00 7000 0 -€4,950.00 -€2,050.00 -€1,400.00

€73,000.00 €35,000.00 13520 2160 -€6,600.00 -€9,080.00 -€2,920.00

€35,000.00 €35,000.00 €7,000.00 €0.00 -€4,950.00 -€2,050.00 -€1,400.00

€45,000.00 €115,000.00 €45,000.00 €55,000.00 €7,560.00 €13,520.00 €2,880.00 €18,960.00 -€4,950.00 -€6,600.00 -€5,490.00 -€25,880.00 -€1,800.00 -€4,600.00

-€1,595.00

-€3,399.00

-€1,595.00

-€2,295.00

-€6,339.00

€29,955.00

€57,601.00

€29,955.00

€35,415.00

€78,181.00

Childcare Tax Credit*

-€2,000.00

-€1,500.00

-€1,000.00

Net Tax after childcare

€50.00

€4,920.00

€50.00

€1,110.00

€5,920.00

€31,955.00

€61,761.00

€31,955.00

€39,795.00

€98,141.00

Total Income Your Income Tax @ Lower Rate Tax @ Higher Rate Tax Credits Net Tax PRSI Universal Social Charge Annual Net Income

Annual Net Income

*Recipients of the Community Childcare Support scheme cannot also claim the Childcare Support Credit

Appendix 2 Working Families’ Childcare Needs

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

Appendix 3 Costing All Options Policy Options

STATIC COSTS (millions, €)*

Increased Capitation for ECCE Providers with Higher Qualifications (6% Increase)

€5

Professional Development Support Fund for Graduate Qualifications

€5

Additional Costs for Existing ECCE Year (4% Increase)

€7

Community Childcare (CCS) Expansion

€10

Special Educational Needs Fund

€10

ECCE Workforce Development Capitation

€19

Maternity Expansion

€39

Childcare Support Credit

€90

Second Free ECCE Year for Children (age 2-3)

€146

*These costings are static in the sense that they do not consider the positive revenue implications of any new programmes. Since many of these programs will reduce the marginal burden of childcare costs on working parents, they are likely to increase both output and labour force participation. It is likely therefore that these costs over-estimate the expense to the exchequer.

Description Higher Capitation Rate to ECCE providers conditional on quality and qualifications Fund for upskilling by ECCE staff, to support development of graduate-led workforce Increased investment in pre-school services to enhance quality and capacity in ECCE; 4% increase on current base rate capitation 22% expansion of Community Childcare Scheme for children from low-income families To support children to access both longer periods of pre-school education (max 2 years) and needs-contingent Special Needs assistant support Higher Capitation Paid to Preschool providers to improve staff remuneration and conditions Extending paid leave from 26 weeks to 30 weeks with optional parental sharing Subsidy to cover between 20-40% costs of childcare for working parents to ensure good quality, affordable childcare for all Universal expansion of free preschool year to all children aged 2-3** **This assumes there would be an 80% take-up rate of places on the scheme among the eligible cohort, rather than the 95% take-up for the current ECCE scheme. This is because of the availability of the Child Support Credit and the expectation that fewer 2-3 year olds will participate in preschool than 3-4 year olds

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

Appendix 4 Full Cost of Childcare and Early Education Policy Programs 2016-2018 YEAR 1 PROGRAMS

COSTS (millions, €)

Childcare Support Credit

€90

Maternity Expansion

€39

Community Childcare (CCS) Expansion

€10

Additional Costs for Existing Year (4% Increase)

€7

Special Educational Needs Fund

€10

ECCE Workforce Development Capitation

€19

Professional Development Support Fund for Graduate Qualifications

€5

Total

€180

YEAR 2 PROGRAMS

COSTS (millions, €)

Childcare Support Credit

€90

Maternity Expansion

€39

Community Childcare (CCS) Expansion

€10

Special Educational Needs Fund

€10

Additional Costs for Existing Year (4% Increase)

€7

Increased Capitation for ECCE Providers with Higher Qualifications

€5

ECCE Workforce Development Capitation

€19

Professional Development Support Fund for Graduate Qualifications

€5

Total

€185

YEAR 3 PROGRAMS

COSTS (millions, €)

Childcare Support Credit

€51

Maternity Expansion

€39

Special Educational Needs Fund

€10

Community Childcare (CCS) Expansion

€10

Second Free ECCE Year for Children (age 2-3)

€146

Total

€256

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

References Australian Productivity Commission [APC] (2014). Childcare and Early Learning Inquiry Report. Caspi, T. Moffitt and D. Newman (1996). Behavioral Observations at Age 3 Years Predict Adult Psychiatric Disorders: Longitudinal Evidence from a Birth Cohort in Archives of General Psychiatry, vol.53, pp.1033-9. Central Statistics Office (2014). Survey on Income and Living Conditions 2013. Department of Children and Youth Affairs - (2013). Right from the Start Report: of the Expert Advisory Group on the Early Years Strategy. - (2014). Better Outcomes Brighter Futures: National Policy Framework for Children and Young People 2014-2020. Department of Education and Skills (2011). Literacy and Numeracy for Learning and Life: The National Strategy to Improve Literacy and Numeracy among Children and Young People 2011-2020. DESSA (2007) Profile of Inclusion: A Study of the Inclusion of Disabled Children. In Childcare and Play Settings, p.10. The Effective Provision of Pre-School Education [EPPE] Project (2004). Findings from Pre-School to End of Key Stage 1. Eurydice and Eurostat (2014). Key Data on Early Childhood Education and Care in Europe (2014 Ed) European Commission. Feinstein (2000). Inequality in the early cognitive development of British children in the 1970 cohort Growing Up in Ireland - (2011). Overweight and Obesity Among 9-Year-Olds Report 2. - (2013). Parenting and Infant Development Report 3. Hart, B. and Risley, T. (1995) Meaningful Differences in the Everyday Experience of Young American Children. Michigan: P. H. Brookes. Heckman, J. (2006) The Economics of Investing in Children, Dublin: UCD Geary Institute. Indecon (2013). Supporting Working Families: Releasing a Brake on Economic Growth. Report for Donegal County Childcare Committee. National Institute of Child Health and Human Development [NICHD] (2006). The NICHD Study of Early Child Care & Youth Development (SECCYD): Findings for Children up to Age 4 1/2 Years. OECD (2004). Thematic Review of Early Childhood Education and Care Policy in Ireland. Sure Start (2012). Early Learning: Policies for Childrenâ&#x20AC;&#x2122;s First 3 Years.

Accessible, Flexible and Affordable Childcare in Ireland A Global Vision for Early Childhood and Family Policy

Robert Troy TD

FIANNA Fﾃ！L SPOKESPERSON FOR CHILDREN

0612

Dﾃ｡il Eireann, Leinster House, Kildare Street, Dublin 2. Tel 01-6184059 Email robert.troy@oireachtas.ie