The objective of the supplementary welfare allowance scheme, under which crèche supplements are paid, is to meet immediate, short-term income maintenance needs. The scheme is not intended to be a long-term solution in any individual case.
The crèche supplement was introduced with the intention of providing assistance to a parent who is in need of a short-term emergency support. This could arise, for example, where, without assistance with child minding, a parent would not be able to avail of necessary particular supports such as counselling services or addiction treatment programmes.
It was never intended to be a long-term ongoing support for people returning to full-time education.
When the change was announced in November 2003, there were 1,738 crèche supplements in payment. This figure represented an increase of almost 150% in less than three years from January 2001 when there were approximately 700 people in receipt of a crèche supplement. Payment of crèche supplements were increasingly being made for reasons which were clearly outside the scope of the original intentions of the scheme.
The fact that the supplements were in payment for long durations in many cases indicated that they had become a long term childcare support rather than the short term social welfare support which was originally intended.
This is not an appropriate way for meeting the needs of the people in question. However, crèche supplements in payment prior to 1 January 2004 have been allowed to remain in payment for a limited period.
While the total amount spent on crèche supplements is significant, with some €2.1 million spent in 2003, funding crèches in this manner is administratively inefficient as it requires the parents to apply individually for a weekly payment. The cost of administration represents a high proportion of the value of the funds provided to the crèches.
As the Deputy may be aware, the Department of Justice, Equality and Law Reform has introduced the Equal Opportunities Childcare Programme, 2000-2006 to fund the development of childcare in Ireland while seeking to ensure that existing child care services are not displaced by the introduction of new initiatives in this area.
One of the main aims of the programme is to provide childcare facilities which will allow parents to avail of educational, training and employment opportunities. In this regard the equal opportunities childcare programme is the more appropriate vehicle to address the needs of the people identified by the Deputy.
Discussions are continuing with officials from the Department of Justice, Equality and Law Reform and the Department of Health and Children and from some of the health boards to ensure that more appropriate arrangements are put in place.
In the meantime, I would point out that the changes I introduced in the supplementary welfare allowance scheme in no way affect the discretion available to health boards to provide assistance in emergency cases which may arise from time to time.