Child Care Costs

Dáil Éireann Debate, Tuesday - 14 February 2017

Tuesday, 14 February 2017

Questions (683, 684, 685, 686, 687, 688, 689, 690, 691, 692, 693, 694, 695, 696, 697, 698)

Anne Rabbitte

Question:

683. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7377/17]

Anne Rabbitte

Question:

684. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7378/17]

Anne Rabbitte

Question:

685. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7379/17]

Anne Rabbitte

Question:

686. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7380/17]

Anne Rabbitte

Question:

687. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7381/17]

Anne Rabbitte

Question:

688. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7382/17]

Anne Rabbitte

Question:

689. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7383/17]

Anne Rabbitte

Question:

690. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7384/17]

Anne Rabbitte

Question:

691. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7385/17]

Anne Rabbitte

Question:

692. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7386/17]

Anne Rabbitte

Question:

693. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7387/17]

Anne Rabbitte

Question:

694. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy a person would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7388/17]

Anne Rabbitte

Question:

695. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7389/17]

Anne Rabbitte

Question:

696. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7390/17]

Anne Rabbitte

Question:

697. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances(details supplied). [7391/17]

Anne Rabbitte

Question:

698. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the maximum subsidy persons would receive under the new affordable child care scheme 2017 in circumstances (details supplied). [7392/17]

Written answers

Minister for Children and Youth Affairs

I propose to take Questions Nos. 683 to 698, inclusive, together.

The universal element of the Scheme will be available to all families with children between the age of six months and 36 months (or until the child qualifies for the free pre-school programme if later than 36 months). The targeted element of the scheme will involve a progressive system of income-related subsidies for parents with children between 6 months and 15 years, with eligibility based on net parental income. A family may receive either the universal or the targeted subsidy, not both. The subsidy provided will be whichever of the universal and targeted payment is most favourable to a family.

The scheme will be available in childcare providers who are registered with Tusla, including both centre-based childcare providers (e.g. crèches, preschools and daycare centres) and child-minders.

For parents with net incomes up to €22,700 per annum, the maximum rate of childcare subsidy will be payable. The rate of subsidy will taper downwards as net income rises, with no means-tested/income related subsidy payable when net income reaches €47,500. For families with net income levels above this threshold, the universal subsidy may be available, depending on the age of the child.

The amount of subsidy provided, in relation to both the universal and targeted subsidies, depends on (a) the number of hours of childcare used per week, and (b) the number of weeks of childcare used per year. The amount of subsidy does not depend on the number of hours worked, except in that a maximum of 15 subsidised hours of childcare will be available if a parent is engaged in neither work nor study. The subsidy estimates in the table assume that each family uses 40 or more hours of childcare per week, and pays for year-round childcare. If fewer than 40 hours of childcare are used per week, or childcare is used for only part of the year, the annual subsidy will be reduced pro rata.

The subsidy estimates in the table assume that the families in question have no income from other sources, including no other social welfare payments, and that they are making no pension contributions. It should be noted that the amount of subsidy payable will also depend on other incomes that a family may receive, as well as on the family’s tax arrangements, their level of pension contributions, and other arrangements such as maintenance payments. For these reasons, the assumptions in the table regarding net income as assessed for the purpose of the Affordable Childcare Scheme are solely illustrative, and may not necessarily apply in any given family’s situation.

It should also be noted that net income as assessed by the Affordable Childcare Scheme is reduced if a family has more than one child under the age of 15.

PQ number	Assumed gross income	Assumed net income	Hourly subsidy rate for 1 year old	Maximum annual subsidy for 1 year old
683	Below base income threshold	Below base income threshold	€4.37	€3,409 (assuming max 15 hours per week)
684	Below base income threshold	Below base income threshold	€4.37	€9,090 (assuming max. 40 hours per week)
685	Below base income threshold	Below base income threshold	€4.37	€9,090 (assuming max. 40 hours per week)
686	Below base income threshold	Below base income threshold	€4.37	€3,409 (assuming max 15 hours per week)
687	Below base income threshold (assuming work is paid at minimum wage)	Below base income threshold (assuming work is paid at minimum wage)	€4.37	€9,090 (assuming max. 40 hours per week)
688	€28,860	€28,306	€3.50	€7,280 (assuming max. 40 hours per week)
689	€38,480	€36,276	€2.25	€4,680 (assuming max. 40 hours per week)
690	€28,442	€28,245	€3.50	€7,280 (assuming max. 40 hours per week)
691	€29,442	€29,072	€3.38	€7,030 (assuming max. 40 hours per week)
692	€30,442	€29,822	€3.26	€6,780 (assuming max. 40 hours per week)
693	Below base income threshold	Below base income threshold	€4.37	€9,090 (assuming max. 40 hours per week)
694	Below base income threshold	Below base income threshold	€4.37	€9,090 (assuming max. 40 hours per week)
695	€30,566	€30,011	€3.23	€6,718 (assuming max. 40 hours per week)
696	€69,332	€56,898	€0.50	€1,040 (assuming max. 40 hours per week)
697	€74,813	€59,694	€0.50	€1,040 (assuming max. 40 hours per week)
698	€79,398	€62,032	€0.50	€1,040 (assuming max. 40 hours per week)