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Some child care providers may close after Christmas because the Department of Children and Youth Affairs has sought immediate recovery of overpayments from early childhood providers, according to small business group ISME.
In a letter to Minister Roderic O’Gorman on behalf of the Federation of Early Childhood Providers, ISME Executive Director Neil McDonnell warns that if this issue is not addressed urgently, “… threatens the ability of parents to return to work after this lockdown, hiring staff after Christmas and guaranteeing places for children in a plan after Christmas.
Describing the background to the situation, Mr. McDonnell notes that due to the government’s decision to keep the sector from the early years when the pandemic occurred, providers were able to access the Covid-19 Temporary Wage Subsidy Child Care Program (TWSCS).
In some cases, providers were overpaid, but Mr. McDonnell emphasizes that the providers in question have never questioned that they would have to be reimbursed at some point.
In his letter, he states that in a Skype call on September 16, an official from the Department of Children and Youth Affairs assured the federation “… that it was not the intention of the Department to cause providers to have problems, and that a payment schedule would be provided. “
However, McDonnell says that last Monday, November 9, “most” providers received an email with a recovery demand by this Friday, November 13, with a warning that if the funds are not returned by then , Pobal agency “will begin the recovery. process against Program payments.”
“Such a demand is completely unreasonable and our members cannot meet it without
damage to their businesses ”, warns the head of ISME.
He points out that most providers will only have one more payment in calendar year 2020 and that for administrators of the Early Childhood Care and Education Scheme (ECCE) services, this is their only form of income, as there is no They have rates for parents.
Mr. McDonnell tells the minister that “the understanding of our providers is that this money is for the children’s place in service, therefore a recovery should not emerge from Pobal.”
He states that the federation was also told that no Access Inclusion Model (AIM) funding would be recovered for additional special teachers, but tells Minister O’Gorman that “… various members have reported that AIM has been recovered”.
McDonnell says there are also problems due to a lack of detail regarding the remittance information that is provided to providers, particularly when paying for more than one scheme.
He cites the “unacceptable” case of a supplier who has received a recovery claim of € 25,000, while the supplier calculates that the correct amount owed is less than half that at € 12,500.
McDonnell says that while providers agree that any overpayment must be repaid, “… during the term of a second lockdown this is not the time to do so.”
“For many of them, this is the last payment before Christmas. They pay their year-end tax bill, employees’ Christmas vacation wages, and the renewal of liability insurance in early January.”
It maintains that the situation of closures and loss of child care places can be avoided if the deposit and return measures applicable to other businesses are applied here during the Covid-19 pandemic.
McDonnell concludes by requesting an immediate meeting with the minister and his officials “in order to initiate a retraction of this Friday’s recovery and its replacement with a logical and sustainable schedule of reimbursements by suppliers that protects them and your essential service. ” .
The Department of Children and Youth Affairs told RTÉ that it had informed child care providers that they had received an overpayment under TWSCS of the need for recovery on September 16, 2020.
In a statement it said: “The Department postponed recovery until November to allow child care providers to manage their cash flow. If providers have difficulty repaying overpayments in November, the Department has informed them that plans will be implemented. alternative payment “.
He said child care providers are currently receiving additional financial support under the enhanced EWSS scheme, which covers an average of 80% of the staffing costs of services, before parental fees and Department funding.
“The continued sustainability of the child care sector is a key objective of the Department,” the statement said.
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