Anne Rabbitte
Question:1. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the status of the roll-out of the affordable childcare scheme; and if she will make a statement on the matter. [38163/18]
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Affordable Childcare Scheme
I welcome the Minister, Deputy Zappone, back and look forward to working with her again this year. I welcome the children in the Public Gallery. This morning's session relates to children and youth affairs, so it is great they are present.
I find myself repeating this question on the status of the roll-out of the affordable childcare scheme. Will the Minister make a statement on it?
I thank the Deputy. It is great to be back and working with her also. I welcome also the children in the Public Gallery.
My Department is working hard to develop the new national affordable childcare scheme and I am pleased to say we are making good progress. The scheme will establish and provide financial support for parents and will also provide a sustainable platform for investment in the childcare sector for generations to come. Deputies will be aware that legislation establishing the new affordable childcare scheme, the Childcare Support Act 2018, was enacted before the summer recess. This will be underpinned by detailed secondary legislation and formal policy guidelines, both of which are currently in development, along with the regulations to provide for the registration of school-age childcare services by Tusla. These regulations will be introduced in advance of the affordable childcare scheme to allow school-age childcare services to register and thereby participate in the scheme from the outset.
Following a full open tender public procurement process, the contract for the development of the scheme’s ICT system has been awarded. Now that a contractor is in place, my officials are finalising a detailed project plan and I will shortly confirm and communicate our plans for the launch of the affordable childcare scheme to Government, and more widely. Work is also progressing on several other fronts, including the preparation of timely and user-friendly information, resources and supports for parents, providers and other stakeholders. Alongside this, I am committed to ongoing consultation and engagement with all stakeholders in the run up to the introduction of the scheme.
Finally, the interim measures which I introduced last September to fast-track some of the benefits of the affordable childcare scheme have already supported more than 84,000 children and will remain in place until the new scheme goes live.
We are turning Ireland’s childcare system from one of the most expensive in the world into one of the best. This is a massive challenge and I am delighted that we are well on the way to delivering the childcare supports that Irish families need and deserve.
I thank the Minister and welcome her update. It is regrettable that the ICT system has taken so long to put in place but I welcome the announcement that the contract has been awarded. Can the Minister indicate the timeline for this? Can she see us having the affordable childcare ICT system in place this time next year? Will it be up and running? A conversation the Minister and I have all the time is on 9,000 families who will possibly not make it due to the fact that they are so close to the €47,500 qualifying income level. Will other families be in this position this time next year? Can the Minister explain the secondary legislation needed to secure the roll-out of the affordable childcare scheme? How can we work with her on that?
The delay in the ICT system is regrettable at one level, but it is really important to get this right as it will provide a sustainable platform for generations of families to come. It is one of the most ambitious ICT projects the Government is currently undertaking and will provide a model for future approaches to new ICT platforms, including the one my colleague in the Department of Employment Affairs and Social Protection is anticipating regarding pension reform. It is very important that we get this right.
Notwithstanding this unanticipated delay, as the Deputy is aware, we have fast-tracked a number of measures from this September onwards, where families are receiving more money. The Deputy referred to the possibility that 9,000 families may not be included given the fact we are not into the absolute affordable child scheme. That was an estimate at the time. We do not expect the figure to be as high as that. We know that there are huge numbers of families and children who are receiving substantially more money as and from this September.
In terms of the affordable childcare scheme, and this is something I flagged with the Minister earlier this summer, where children are currently availing of the early childhood care and education, ECCE, scheme in normal settings but need to attend special care units as well, can the system administer services to both? If a family has a child with Down's syndrome, can the child attend the special needs unit in the morning and an affordable childcare setting in the afternoon or later on in the day, so the child integrates fully? It is something that has been raised with me a lot during the summer. In Grovelands Childcare, a crèche in the Minister of State, Deputy Moran's constituency, there are four children attending a particular setting. How are we going to integrate children with disabilities?
That is a very important question and I am sure it influences and impacts many other children inside as well as outside of the Deputy's constituency. As the Deputy is fully aware, there are three primary objectives to this radical approach to childcare.
Our ambition is that it will be accessible, affordable and of high quality. It is the accessible aspect about which the Deputy is speaking. As she is also aware, we have invested hugely in measures within early childcare settings in the light of the access and inclusion model, AIM, programme that support the children in participating in what are now mainstream services. On the specific issue to which the Deputy refers, it is important and if my officials are not already looking at it, I will ask them to look at it again. We have time to plan for this and given the importance of the accessibility aspect of our objectives, I am certain that we can find ways to ensure it will be accommodated.
Childcare Costs
Denise Mitchell
Question:2. Deputy Denise Mitchell asked the Minister for Children and Youth Affairs her plans to reduce the cost of childcare in the coming years; her views on the Economic and Social Research Institute’s recent report which has found that high childcare costs are a major obstacle to many women re-entering the workforce; and if she will make a statement on the matter. [38070/18]
My question is to ask the Minister for Children and Youth Affairs her plans to reduce the cost of childcare in the coming years, her views on the Economic and Social Research Institutes's recent report which has found that high childcare costs are a major obstacle to many women re-entering the workforce, and if she will make a statement on the matter.
I welcome the ESRI's report which highlights the challenges childcare costs present for families in Ireland, particularly for women who wish to return to or remain in work. Providing a childcare infrastructure that enables accessible, affordable and quality childcare is a cornerstone of my work as Minister for Children and Youth Affairs. I have stated on numerous occasions that the cost of childcare is not a problem that can be fixed in a single budget. Ireland has seen low levels of investment in this area for many decades, tailing the levels of investment across Europe and the OECD. We have started to address this underinvestment in the past three budgets, with the level of investment increased by some 80% since 2015. I acknowledge, however, that there is still a long way to go. To fully address the cost of childcare, we need continued investment in childcare infrastructure. This investment will, in turn, reap dividends for the country by enabling women who wish to work to do so, in so doing boosting the economy.
Just before the summer recess I was delighted to be able to put the entitlement of families to financial support for childcare on a legislative footing for the first time in the history of the State. This came about with the passing of the Childcare Support Act. The affordable childcare scheme will mark a major turning point in the subsidisation of childcare in this country. It will enable us to pass on to parents whatever investment the Exchequer can make available to lower childcare costs. Now that the legislation for the scheme is in place, we are focusing on the development of the IT and administrative infrastructure for the scheme and this work is continuing apace. I hope to report to the Government shortly on a timeframe for the project. To assist parents and families in the interim, as I referred to, I put measures in place last September to provide a non-means-tested subsidy of up to €1,040 per year for children aged between six months and the time at which they are eligible for the early childhood care and education, ECCE, scheme. We have also enhanced subsidies for families that need it most by 50%, up to €145 per week for children up to 15 years of age. These and many other measures support the objective of ensuring more women will be able to return to work.
In recent weeks we have seen a number of surveys taking place on the cost of childcare. Childcare costs have risen by 5.5%. I recognise that the Minister has said this is a problem owing to the lack of funding by the State over many years. The cost of childcare is crippling working families who are paying the equivalent of a second mortgage, which puts huge pressure on family life. Despite the subsidies, childcosts are still going up. At the end of August the Minister said the investment levels identified by the Irish Congress of Trade Unions, ICTU, in its budget submission were necessary. Will she confirm that the Government's investment in the ECCE scheme will meet the figure of 0.7% of GDP in the short term and 1% by 2027, as advised by ICTU?
The primary focus of the question is on where Ireland is in relation to other countries in terms of investment in childcare and, therefore, reducing the cost. It is a critical question. I support research that demonstrates that we are not yet there. That is really important as it helps me in my negotiations with the Government to increase the level of investment, even though, as I have indicated, it has increased by more than 80% in the past three years. It is also important for ICTU and other advocates to identify that we still have a long way to go with our investment in order to reach what would be more appropriate levels when we compare Ireland with other countries in the OECD. The level of investment compares poorly with that in other European countries. The OECD average is 0.8%. The level of investment falls short of the UNICEF-recommended level of 1% of GDP. Every increase of 0.1% in public expenditure in Ireland, however, will cost an additional €300 million. That identifies the length of time involved. I am right in the middle of my negotiations with the Minister for Finance, Deputy Paschal Donohoe, and determined to get as much as I can to deal with the issue this time around.
I was surprised by some of the Minister's Government colleagues talking about the so-called granny grant, rather than investment in the childcare system. I was glad that many of us in the Chamber were of the same opinion as the Minister. We wll support her in any way we can in that regard. As women, all of us present know that a barrier to returning to work is childcare costs. Does the Minister have targets when she enters discussions with the Minister for Finance? On average, is she looking at reducing the cost by 50% over two or ten years, for example, or will she give some indication of what she considering?
I am not at liberty to say exactly how much money I am looking for from the Minister for Finance, but what I will say - this is an equally important response to the Deputy's question - is that the two main barriers to women re-entering the workforce include not only childcare costs but also capacity in the school-age sector. As the Deputy knows, there are now two years of free preschool, but it does not move into after-school care. Of course, if women want to return to work, even part-time work, sometimes not having the required after-school care support gets in the way. We need to build capacity. The lack of transport from schools to after-school facilities prevents women who wish to do so from returning to work. I have these two key practical issues in mind in considering what is required. While we need money, we also need to decide what the money is for. There is a focus on some of these issues to ensure the concern about women returning to work will be addressed.
Early Childhood Care and Education Programmes
Anne Rabbitte
Question:3. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs if her attention has been drawn to the considerable shortages within the ECCE system; and if she will make a statement on the matter. [38164/18]
I welcome the Minister's comments. My question asks the Minister if she is aware of the considerable shortages within the ECCE system; and if she will make a statement on the matter.
I understand the Deputy's question refers to capacity under the ECCE scheme, the fact that service providers may prioritise full-time children over ECCE scheme-only children and that service providers do not always guarantee a childcare place in the second year of the ECCE scheme. From September this year, the annual number of ECCE enrolments will be approximately 114,000. Given that more than 118,000 places were filled in the last programme year, no significant overall capacity issues are anticipated for those expected to register for the ECCE scheme from September 2018. This is endorsed by preliminary data to be published before the end of the year from the annual Pobal sector profile related to ECCE places. My Department will continue to monitor the position as registrations are received for the 2018-19 programme year. Notwithstanding this, I recognise that there can be pressure in some localities. I urge anyone experiencing difficulty in securing an ECCE place to contact his or her local city or county childcare committee for assistance. From September 2018, the ECCE programme reverted to one single entry point only, with eligible children entitled to two full years of ECCE provision for the first time, fulfilling a commitment made in the programme for Government.
I believe we have sufficient places to deliver on this important improvement.
On the general capacity in the system, my Department provided a total of €4.61 million in capital funding in 2018 specifically for the creation of new childcare places. This represents the creation of some 1,950 additional early years childcare places of which 1,253 are for ECCE. If a gap in capacity is objectively identified, we can consider a range of measures to address those in collaboration with local childcare committees.
Replies to recent parliamentary questions revealed a serious shortage of ECCE places, particularly in the commuter belt of County Meath and in Cork. There seems to be a shortage of 1,050 places in Meath and 2,460 places in Cork. I am glad the Minister acknowledged that settings offering full day childcare will be prioritised because the issue needs to be addressed. Recently, I was contacted by a parent who was informed she could only enrol her child in an ECCE scheme if she signed up for a supplementary one hour and 15 minutes of care per day, at an additional cost of approximately €100 per week. Parents facing this choice believe their options are being limited. I acknowledge, however, that the Minister addressed this issue.
When parents sign up to the scheme, would it be possible to guarantee a place for the second year, rather than having them sign up for only one year? Is there a way to write into the script, as it were, a requirement on childcare providers to offer an ECCE place for two years?
I wish we could to that. What we can do is call for it and encourage childcare providers, who generally do an excellent job in providing quality childcare places across the country, to do so. Decisions on prioritising full day places and guaranteeing places for a second ECCE year are primarily matters for the service providers who are free to set their policies in these areas. The Department actively seeks to ensure there is sufficient capacity available to allow service providers the latitude to accommodate all children. We are in constant contact with the providers, not only through the county and city childcare committees but also directly in the different ways we gather the stakeholders together. The Deputy raises important points. We have allocated and invested capital and we are in consultation with providers. The Deputy cited some statistics and if she identifies further gaps, I ask that she bring them to our attention. The Department, working with county and city childcare providers, wants to ensure there are no gaps at local level and we will do what is necessary to fill them when they arise.
We are in the pre-budget period and I am sure the Minister will not tell me what her capital funding plans are today. Some childcare providers are fully subscribed and there is a capacity issue coming down the tracks in the ECCE scheme. The Minister successfully allocated capital funding in recent years. Is this funding sufficient? Could more capital funding be found to address capacity, which is a serious concern? I raised previously with the Minister the problem faced by a crèche in Mountbellew, which offers full-time childcare and required another room. I have encountered similar cases in Clarinbridge and other parts of my constituency, but the problem is not unique to Galway East. Full-time childcare providers face capacity issues and would like to be able to access funding to expand. Is the Minister considering increasing capital expenditure in next year's budget to fund the expansion of childcare facilities?
We are making plans for capital investment in 2019. While the amount of funding is important, of equal importance is what we do with that money and the way in which we target it to best meet identified needs. Pobal and the Department are engaged in ongoing research and monitoring. The Deputy and other Deputies also do great work in letting us know where gaps exist and where there is local need, so that we can match what we have to invest with those needs. We are on target to identify the plans for 2019 and we have some idea of figures.
I remind the Deputy that childcare was identified as a strategic priority in the national development plan, NDP. I have negotiated €215 million to be provided for additional capital investment over the lifetime of the plan, particularly in its mid to later years. The NDP provides us with an opportunity to increase the scale of our investment.
Child Poverty
Denise Mitchell
Question:4. Deputy Denise Mitchell asked the Minister for Children and Youth Affairs the progress made in tackling childhood poverty; her views on whether this progress is on track to reach the 2020 targets outlined in the national policy framework for children and young people; and if she will make a statement on the matter. [38071/18]
I ask the Minister to indicate what progress is being made in tackling childhood poverty, whether it is on track to reach the 2020 targets outlined in the national policy framework for children and young people, and if she will make a statement on the matter.
I have a strong personal commitment to reducing child poverty. It is a key priority for the Government. When we set ourselves a target, in 2014, of reducing consistent poverty in children by two thirds of the 2011 level, it was a challenging ambition. It would have meant lifting 70,000 children out of poverty by 2020. This baseline target against 2011 means that today we need to lift 102,000 children out of consistent poverty by 2020.
Consistent poverty means that these children are living in households with incomes below 60% of the national average income and experience deprivation according to official Government poverty indicators. We have made some modest progress. From a peak of 152,000 children in consistent poverty in 2014, we have seen a 9% decrease in 2015 of 13,680 children living in poverty. This downward trend continued with an 11.1% rate of consistent poverty in 2016, a further reduction of 6,320 or 4.5%, with a total of 132,000 children deemed to be in consistent poverty. Figures for 2017 will be available in November. However, it will be extremely difficult to reach our ambitious target of lifting more than 100,000 children out of poverty by 2020.
My Department works closely with the Department of Employment Affairs and Social Protection, which has the lead role in co-ordinating strategies on poverty and the national action plan for social inclusion. With the support of the advisory council on Better Outcomes, Brighter Futures, which worked with non-governmental organisations and a range of Departments, we published a valuable paper on a whole-of-Government approach to tackling child poverty last October. This identifies six priority areas for action, namely, providing universal access to general practitioner care for those aged under 18 years, reducing the cost of education, housing, affordable childcare, labour activation and the provision of in-work benefits. My focus has been on affordable childcare.
The Better Outcomes, Brighter Future policy document sets a target of lifting 70,000 children out of poverty. The key to reducing childhood poverty is delivering effective services and supports. Despite the economic situation, Barnardos recently reported that many families and children continue to seek its support. Barnardos estimates that 138,000 children in the State live in poverty. It is very upsetting and shameful that 138,000 children are living in consistent poverty. Clearly, the work being done in this area is not enough. What discussions are taking place between the Minister and her Cabinet colleagues on this issue? Will she elaborate on her vision for addressing child poverty?
To have a comprehensive and sustainable impact on child poverty, future strategies must, in conjunction with cash transfers, also focus on improving service provision.
That comprises much of my vision. Doing what I describe can have a meaningful impact on reducing the cost of living for families with children. Our radical new approach to childcare is benefiting families in poverty and those at risk of falling into poverty.
Let me give the Deputy two examples from my Ministry that demonstrate how we are trying to achieve what I describe. Family A includes parents with three children and a household income of €35,000. The children are aged one, three and five. Supports provided through our new measures are a universal subsidy of €1,040 for the one year old, €2,451 for the two year old, through the free preschool scheme, and a further €2,451 for the five year old following the decision to extend the scheme to cover two programme years. Therefore, each year the value of the supports is €5,942. That is a significant benefit. It reduces the cost of living and it provides the family with more opportunity to move beyond poverty.
I welcome what the Minister is saying but we cannot ignore the elephant in the room, namely, that there are 138,000 children in this State living in poverty and 4,000 homeless children. We all know that the better the start a child has in life, the better his or her prospects.
In the upcoming budget, we seriously need to focus on children. We need to see a budget that is proofed for child poverty and that will break the cycle of poverty. We need to see the supports the Minister talks about in place and working to prevent more children from being added to the list of children in poverty. I am confident that the Minister is a voice going into the discussions, but I sometimes wonder whether her colleagues are on the same page.
The design and implementation of the affordable childcare scheme are rooted in the fundamental principle of reducing children's poverty and its impact on households. That underlies the objectives of having affordable, accessible and quality childcare. We can see the result of our investment. It is not a question of how much money is spent but of where it goes. When talking about children in poverty or in consistent poverty, we are talking about children in families in which an individual earns 60% of the median income. This amounts to €12,227. This is tough.
I will give the Deputy another example of what we have brought forward through our initiatives. It is that of a lone parent with two children in receipt of various payments, including the one-parent family payment. That payment comes from colleagues. The family holds a medical card. For the two year old, the family receives a subsidy of €145 per week. The family has a six year old and it can avail of the after-school payment of up to €80 per week. In essence, this lone parent family with two children, aged two and six, receives €12,320 in subsidies to support its childcare costs. That is what is going on right now. That reduces children's poverty right now in the country.
Question No. 5 replied to with Written Answers.