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NCIP Funding

National Childcare Investment Programme 2006-2010

Overview

The National Childcare Investment Programme (NCIP) 2006 - 2010 announced on 7 December 2005, came into effect on 1 January 2006 and will succeed the existing Equal Opportunities Childcare Programme (EOCP) 2000 - 2006. The EOCP will continue to be operational in parallel with the New Programme until all applications on hand are processed and commitments are honoured, and the drawdown and verification of existing grant allocations are fully complete. From 1 January 2006, both the NCIP 2006-2010 and the EOCP will be managed by the Childcare Directorate. Pobal (formerly known as ADM Ltd) will continue to implement the day to day operation of the EOCP as well as taking on this role under the NCIP 2006 - 2010.

Aims and Objectives

The NCIP 2006 - 2010 will build on the existing EOCP Programme and will incorporate the following number of key objectives.

Increase the supply and improve the quality of early childhood care and education services, part-time and full day care, school age childcare and childminding.

Support families and breaking the cycle of disadvantage.

Support a co-ordinated approach to the delivery of childcare which is centred on the needs of the child.

The NCIP 2006-2010 aims to provide a proactive response to the development of quality childcare supports and services which are grounded in an understanding of local needs. The County and City Childcare Committees will play a key role in the implementation of the new Programme to enable greater flexibility and responsiveness to local needs. The following services will be eligible for support: those providing care for babies, full-day care, part time places, pre-school places, school age childcare including "wrap around" childcare places and childminding. Special consideration will be given to support services which provide a range of the above.

Funding Available

National Childcare Investment Programme funding will contribute towards developing the childcare infrastructure, enhancing and increasing the supply of quality childcare.

• Private Sector Capital Funding
• Community Sector Capital Funding
• Community Childcare Subvention Scheme
• Other Capital Funding

Where to seek support?

To discuss funding under the National Childcare Investment Programme (NCIP) 2006-2010 please contact the Childcare Development Worker for your area.

• Philomena Maloney pmaloney@westmeathchildcare.ie

PRIVATE SECTOR CAPITAL FUNDING

NCIP Funding Available

Private Based Applicants the maximum capital grant available is €100,000 and is subject to a value for money benchmark of €15,000 per place over 5 hours (this equates to €7,500 per place under 5 hours continuously unless the service is deemed a Short Time Service)

There are three main criteria under which proposals from a private provider will be reviewed:

• Local Need
• Quality of the Proposal
• Value for Money

NCIP Minimum Requirements

Operating Hours

There is a general requirement under the NCIP to be open for at least:

• 3.5 hours continuously per day
• 5 days per week
• 46 weeks per years

Services offering Pre-school sessions only may be eligible for a reduced grant of up to €5,000 per additional place subject to a maximum of €100,000

Creation of New Places

Generally a minimum of 5 new places must be created by the project proposal to be considered for funding.

Short Time Services

• These are services, which are HSE compliant and open only 3 hours continuously for at least 39 weeks per year.
• The NCIP Benchmark Criteria for these services is €5,000 per additional short time place. This maybe reduced pro rata if the service is open less than 5 days per week.

Quality Related Grant Applications

In the case where no new places are proposed but grant funding may be justified to raise the quality of an existing service to an acceptable standard the project maybe considered for a lower grant of up to €5,000 per full time equivalent place subject to a maximum of €100,000.

Childminders

Applications for capital funding for small-scale renovations and equipment can be made from childminders subject to the following:

• Maximum grant of €5,000 per Full Time Equivalent Place
• Voluntary notification
• Compliance with Child Care (Pre School Services) Regulations 2006

Maximum grant for self-employed applications is 75% of the Total Project Cost to a maximum grant amount of €100,000.

• Applicants will be required to contribute a minimum of 25% of the Total Project Cost
• Outline the source of funds available e.g. savings or bank/credit union loan to meet the ‘Minimum Applicant Contribution’ requirements
• How do you propose to fund the remaining costs to complete the project?

Reasonable Costs

To ensure the proposal is somewhat realistic at this stage in the process, it will be necessary for you to obtain at least one quotation/estimate to show the estimates are based on real/current prices

Deadweight Issues

An application will not be considered Value for Money if the project would have proceeded regardless of NCIP funding. Other examples:

• Where a developer, in order to comply with the planning permission requirements of a larger development, constructs a childcare facility.
• Where an applicant had already commenced the construction, etc of the project (or was legally committed to completing it) prior to making the application. Expenses incurred prior to the application will not necessarily be considered as evidence of deadweight where such expenses are related to the scoping of the project’s viability. Such costs however will be ineligible under the Programme for grant aid.
• Where the total cost of a private sector project is in excess of €800,000, i.e. the maximum grant is less than 12 ½ % of the total cost.
• A declaration regarding receipt of capital allowances may also be required at this point

COMMUNITY SECTOR CAPITAL FUNDING

NCIP Funding Available

Community Based Applicants the maximum capital grant available is €1,200,000 and is subject to a value for money benchmark of €24,000 per place over 3.5 hours.
There are three main criteria under which community based proposals will be reviewed:

• Local Need
• Quality of the Proposal
• Value for Money

NCIP Minimum Requirements

Operating Hours

There is a general requirement under the NCIP to be open for at least:

• 3.5 hours continuously per day
• 5 days per week
• 46 weeks per year

Services offering Pre-school Sessions only may be eligible for a reduced grant of up to €5,000 per additional place subject to a maximum of €100,000

Creation of New Places

Generally a minimum of 5 new places must be created by the project proposal to be considered for funding. However, there are some exceptions:

• If you are creating up to 4 new full time places – you maybe considered for funding at the benchmark figure of €24,000 per place.
• In exceptional cases where no new places are proposed but grant funding may be justified to raise the quality of an existing service to an acceptable standard the project may be considered for a lower grant of up to €5,000 per place subject to a maximum of €125,000.

NCIP Benchmark Costs

• 5 Full Time Equivalent Places must be created at a minimum to be eligible for the maximum grant available.
• A benchmark of €24,000 per full time childcare place will normally apply. The benchmark is a maximum and should not be considered an average cost.
• Where the benchmark does not allow the grant to meet the full costs of the project applicants are expected to adjust costs or find additional funding to meet the shortfall.
• Existing places should only be considered when calculating the benchmark if there is evidence that the places will be lost without grant funding.

Short Time Services

• These are services, which are HSE compliant and open only 3 hours continuously for at least 39 weeks per year.
• The NCIP Benchmark Criteria for these services is €5,000 per additional place. This may be reduced pro rata if the service is open less than 5 days per week.
• Consideration given to existing places (need for grant assistance demonstrated) and services exempt from the HSE regulations.

Quality Related Grant Applications

In the case where no new places are proposed but grant funding may be justified to raise the quality of an existing service to an acceptable standard the project may be considered for a lower grant of up to €5,000 per full time equivalent place subject to a maximum of €125,000.
How will the proposal enhance the quality of the existing childcare service?

• Will funding enable the project to meet with HSE recommendations?
• If so, a copy of the HSE report substantiating this should be submitted with the PPF
• Any other quality measures e.g. equipment, structure etc

Reasonable Costs

• To ensure the proposal is somewhat realistic at this stage in the process, it will be necessary for you to obtain at least one quotation/estimate to show the estimates are based on real/current prices
• If the group has access to additional funds through other contributions for the childcare service please give details of these.
• If the total project costs are more than the maximum grant available, how do you propose to fund the remaining costs to complete the project?
• If the proposed build includes other elements (e.g. family resource centre, adult training facility) provide information on how that element of the project will funded

COMMUNITY CHILDCARE SUBVENTION SCHEME (2008-2010)

The NCIP Community Childcare Subvention Scheme (2008-2010) is available under the Office of the Minister for Children (OMC) to support community-based not for profit childcare services to enable them to provide quality childcare services at reduced rates to disadvantaged parents. The introduction of the new Scheme meets a commitment made at the launch of the NCIP in December 2005, to bring a new scheme into effect in 2008 when the Equal Opportunities Childcare Programme (EOCP) staffing grant support scheme comes to an end.

As recommended in the Value for Money Review of the EOCP, the new Scheme has been designed by the OMC to target resources more effectively to disadvantaged parents with children in community childcare services. To avail of the Scheme, community not-for-profit childcare services, in addition to providing a quality service, are required to operate an effective tiered fee system, with maximum and minimum fees set at appropriate levels.

Services will be subvented to enable reduced fees to be charged to disadvantaged parents through a Community Childcare Subvention Grant. The subsidies are available in respect of parents who are in receipt of social welfare payments or are engaged in education, training or work experience programmes where an underlying entitlement to a social welfare payment is established, and for persons in receipt of Family Income Supplement (FIS). Subsidies are not available in respect of parents who are not in receipt of these payments. However, due to the subsidisation of childcare costs in the community not for profit sector through capital grant aid and other State supports, all parents using these services should continue to benefit from quality childcare services at affordable rates.

The subvention in respect of Band A parents (those in receipt of social welfare related payments) has been increased from €80 to €100 per full-time place per week (€5,200 p.a.).

The subvention in respect of Band B parents (those in receipt of Family Income Supplement (FIS) or certain childcare subsidies e.g. under FAS/VEC schemes) has been increased from €30 to €70 per full-time place per week (€3,640 p.a.).

Services will also be grant aided to enable them to provide reduced childcare fees for parents who are marginally above the Family Income Supplement (FIS) threshold. Low-income parents in Band C of the Scheme who qualify under this measure are expected to benefit by €45 per full-time place per week (€2,340 p.a.).

Where a parent moves to a lower Band (e.g. from social welfare into employment), the subvention paid in respect of them will be withdrawn on a tapered basis. Under the initial provisions of the Scheme, account was not taken within a calendar year where a parent moved to a lower Band. Under the Scheme as finalised, where a parent no longer qualifies for a Band A payment, he or she will be treated as a Band B parent in the following year. By tapering the application of the subvention Bands in this way, it is hoped to further facilitate parents in making the transition into employment.

Special provisions will apply in the case of childcare services where, for valid reasons, it is not possible to assess grant funding on the basis of annual parental declarations alone (e.g. women’s refuges, special services for children of drug misusers) and, in exceptional cases, where special levels of funding provision may be required.

In recognition of the on-going input of the community and voluntary sector, and to provide stability for services which would otherwise receive very low levels of grant subvention (e.g. small rural services), a minimum annual grant level of €20,000 has been introduced.

As a transitional measure during 2008-2010, services which would otherwise face a significant decrease in their existing level of grant support from July 2008, will continue to receive grant aid equal to not less than 90% of their previous grant level during July-December 2008, equal to not less than 85% of that amount in 2009, and equal to not less than 75% of that amount in 2010. The transitional grant funding will be conditional on all requirements of the Scheme being complied with including the return of annual applications together with completed parent declaration forms and the implementation of tiered fees based on the subvention levels for Band A, B and C parents.

Applications under the Community Childcare Subvention Scheme

Funding under the Scheme will commence with effect from 1 January 2008 and Application Forms will be available from the City and County Childcare Committees. Community-based childcare services which are not in receipt of EOCP Staffing Support Grants (or interim NCIP grants) in 2007, should apply for funding under the Scheme to their local Childcare Committee. The first stage of the application process involves the completion of an Expression of Interest Form (EOI) and is administered by the Committees. Following receipt of the EOI, the City/County Childcare Committee will support applicants to complete Part A of the application process (see below), following which the Part A application will be submitted through Pobal to the OMC. On completion of Part A, services will be issued with an application form for Part B of the process (see below), which should be completed and returned to the OMC.

Community-based childcare services which are in receipt of EOCP Staffing Support Grants (or interim NCIP grants) in 2007, will be required to complete Part B of the application process only.

Part A: Quality Assessment

The key eligibility requirements for the Community Childcare Subvention Scheme are that a service:

• is directly related to the provision and development of community-based childcare facilities;
• is fully compliant with the Child Care (Pre-School Services) Regulations, where applicable, and any other relevant statutory obligations;
• operates a child-centred approach and adheres to standards of best practice at all levels;
• demonstrates a commitment to supporting disadvantaged families through the provision of childcare;
• operates a minimum level of childcare service, which is not less than a continuous session of 3.5 hours per day, 5 days per week, and for at least 46 weeks during the year;
• operates high standards of governance including an appropriate legal structure for the employment of personnel;
• operates an agreed and effective tiered fee system based on maximum and minimum fees set at appropriate levels;
• demonstrates a commitment to sustainable financial planning;
• demonstrates an ability to fully comply with financial and other contractual requirements of funding; and
• fully comply with all reporting/contract requirements and implement any recommendations arising from audits or verification reports.

Part B: Determination of the level of Grant Subvention:

Childcare services which are deemed eligible under Part A (Quality Assessment) will be assessed for funding on the basis of the number of disadvantaged parents using their service and the type of services which their children are availing of. The Scheme identifies disadvantaged parents as those in receipt of social welfare payments or those engaged in education, training or work experience programmes where an underlying entitlement to a social welfare payment is established. Subsidies are also available for persons in receipt of Family Income Supplement (FIS). A parent who wishes to avail of a reduced childcare fee will be required to provide the service with a completed Declaration Form, which confirms the relevant details. These Forms will be required to be attached to the service’s Part B - Application Form and forwarded to the OMC for approval. For data protection reasons, services may not retain copies of completed Declaration Forms. Declaration Forms and Guidelines for Childcare Services will be available from September 2007.

Special considerations:

In allocating funding available under the new Scheme, priority will normally be given to services, which have received capital or staffing grant funding under the EOCP or NCIP. Where a childcare service is ready to open but is not in a position to fully complete the Part B of the application process, the provision of a small start-up grant may be considered.

Other Capital Funding

Arrangements are being made for the introduction of an improved capital grant scheme to assist Childminding services and a new capital grant scheme to assist Parent and Toddler Groups.

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