National Early Learning and Childcare Agency : Your Questions Answered

• 1. Why these changes are necessary/Why the current model need reform
• 2. Why DCEDIY is creating a new agency
• 3. What the new agency will do
• 4. What benefits these changes will bring to the ELC/SAC sector

• 5. How the new agency will improve affordability of childcare for parents
• 6. How stakeholders will be consulted with in this process
• 7. Next steps

Why these changes are necessary/Why the current model need reform

The Review of the existing operating model for ELC and SAC provision was carried out by with the aim of developing a streamlined structure to better support the delivery of ELC and SAC, and to ensure that the operating model is equipped to deal with the significant reform agenda envisaged for the sector in the years ahead. This was on foot of a commitment in First 5, the Whole of Government Strategy for Babies, Young Children and their Families to undertake a comprehensive review of the operating model at both national and local level, with the aim of developing more consolidated and streamlined planning, funding, administration, and quality support.

As reflected in the Review, the current operating model has a range of weaknesses and does not function optimally. The report has taken account of the invaluable feedback received from stakeholders in this regard. A new agency will address the gaps and weaknesses within the existing model, as identified by the Review, whilst harnessing the very many strengths of the existing model. The Review was designed to ensure that any revised model is effective and efficient, and that there is clarity in relation to roles and responsibilities. This will ensure that any future operating model is designed to deal with the significant reform agenda as set out in First 5, meets the evolving needs of children, parents, providers and workers. In addition, the new operating model will ensure appropriate governance arrangements, effectiveness and - with the Government's major investment in the sector - value for money.

Why DCEDIY is creating a new agency

The creation of a new statutory agency under the remit of the Minister for Children, Equality, Disability, Integration and Youth was recommended as the best option for the sector in the years ahead by the independent Review of the Early Learning and Care (ELC) and School Aged Childcare (SAC) Operating Model in Ireland. This recommendation was accepted by Government in March 2022.

The Review evaluated the strengths and weaknesses of the current operating model, drew on national and international evidence to identify and consider alternative models for how the ELC and SAC operating model can be structured, identified the principles and characteristics of a fit-for-purpose model, and appraised a number of alternative options for how the Irish operating model could be reformed. It ultimately concluded that a dedicated State agency under the remit of the Minister for Children, Equality, Disability, Integration and Youth will offer the best operating structure to reduce fragmentation and to streamline systems for the provision of high quality affordable childcare for children, their families, providers and the wider sector.

What the new agency will do

As outlined in the independent Review, it is envisaged that the new agency will undertake the functions currently carried out by Pobal Early Years, including Better Start, the City/County Childcare Committees, as well as the operational functions currently undertaken by the DCEDIY. The roles carried out by the National Voluntary Childcare Organisations will also be reviewed.

While it is not possible to provide any information on the structure and functions of any future agency prior to an extensive design phase which will see significant engagement will all stakeholders, the report conducted by Indecon highlighted significant evidence for the value in maintaining a regional presence to assist the department in its provision of funding schemes and support for ELC and SAC nationwide. Furthermore, the report of the Expert Group to develop a new funding model for ELC and SAC 'Partnership for the Public Good: A New Funding Model for Early Learning and Care and School-Age Childcare' highlights the importance of having an effective local support structure as a central feature of the operating model to deliver the type of planning and support functions required to enable the new funding model.

It is the intention of DCEDIY to ensure that the strengths of the existing model are maintained in any reformed model and that appropriate balance between national/regional and local structures is established in any reforms of the operating model.

What benefits these changes will bring to the ELC/SAC sector

The implementation of the Review recommendations will lead to improvements in support to the ELC and SAC sector. A reformed operating model will better meet the needs of providers, and will better enable the provision of high quality and affordable services for children and their families. Critically, it will ensure that the operating model is aligned with the strategic direction set out in First 5 and that it is equipped to support the major ELC and SAC reform initiatives that are committed to in that strategy

How the new agency will improve affordability of childcare for parents

A dedicated State agency will assist in the development of a more streamlined structure to better support the delivery of high quality and affordable ELC and SAC for parents. It will facilitate the Department in implementing and progressing the significant reform agenda envisaged under First 5, the Whole of Government Strategy for Babies, Young Children and their Families which includes a commitment to a doubling of State investment in ELC and SAC by 2028 - to at least €1bn in annual investment (the minimum target of €1 bn was reached in 2023, five years ahead of schedule, having increased from €270m in 2015). It will also facilitate other key recently implemented reform initiatives such as Together for Better , the new funding model for ELC and SAC.

How stakeholders will be consulted with in this process

The Department is committed to ongoing and extensive consultation with stakeholders in the creation of a new agency. Throughout this consultation process stakeholders will be afforded the opportunity to work collaboratively with the Department to design an operating model that will facilitate the implementation of the proposed reform of the sector in the years ahead. Engagement in this regard has already commenced. Officials from the Department have met with all organisations comprising the existing operating model, and with other key stakeholders, to brief them on the Review and to provide them with an opportunity to share their feedback and views. Engagement with a wide range of

stakeholders will continue as a key feature of this reform programme as we work together to design a new operating model for the benefit of children and their families, providers and practitioners.

Next steps

Significant progress has been made in advancing this ambitious and transformative reform programme. The Department has commenced a period of further detailed analysis, planning, engagement and consultation in respect of this important reform project, to assess how this reform can best be implemented. This phase will include a detailed design of a new operating model, an examination of all legal requirements, transition and continuity planning, risk management, and a comprehensive evidence-based cost projection for the establishment and annual running costs of a new state agency. The Department is committed to engaging and consulting with stakeholders throughout this process.

This work will culminate in a full agency design and implementation plan which will be presented to Government for approval.

This work will be carried out under the guidance of a Programme Oversight Board comprising inter-departmental representatives and external experts in the fields of early learning and childcare, public sector governance, and major organisational reform projects.