Dáil Éireann Debate, Tuesday - 8 November 2016
18. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs her views on the lack of income progressivity in the universal child care subsidy as announced in budget 2017; and her views on whether the scheme is fair on households the income of which falls just above the income threshold for the targeted child care subsidy. [33783/16]
View answerDoes the Minister have concerns about the lack of income progressivity in the universal child care subsidy as announced in budget 2017? Does she believe the scheme is fair on households the incomes of which fall just above the income threshold for the targeted child care subsidy?
The new scheme which I announced recently is highly progressive overall. It will encompass both universal and targeted elements which can be incrementally expanded over time. International evidence indicates that systems based on universalism are associated with lower rates of child poverty and deliver better outcomes for all children, with disadvantaged children benefiting more when services are provided within a universal programme design. Progressive universalism further recognises the importance of the provision of additional support for those with the greatest need.
Eligibility for the targeted aspect of the new scheme is based on net parental income and the highest levels of support will be offered to those on the lowest incomes. It is fairer and more accessible than the current targeted subsidy programmes, under which many low income families are not currently able to access subsidised child care because of the requirement to be in receipt of certain State benefits or attending certain training programmes. It will also enhance targeted schemes.
For example, a person in receipt of the maximum level of subsidy under the current community child care scheme, which is by far the largest of the current targeted schemes, might face a weekly co-payment of €89 per week. Under the new scheme, a person in receipt of the maximum rate of subsidy will have an average weekly co-payment of about €12 per week.
The universal subsidy for children under three recognises that the cost of child care is generally highest when children are under three years of age and this cost can result in many parents having to stop work outside the home when paid maternity leave ends. Recent reports also suggest that cost and sustainability issues are affecting the availability of child care places for children under three years.
Finally, the Deputy has also asked about families above the income cut-off for targeted subsidies. While all targeted schemes, by their nature, have thresholds and cut-off points, the new affordable child care scheme is designed to be flexible, with the ability to adjust income thresholds, subsidy rates and income taper rates over time and as further Government investment becomes available.
I welcome the closing remarks on being flexible and on income subsidy adjustment. If I was a parent on €29,000, under joint income I could not avail of the €2,800 subsidy but would only get €900 per annum. If I want to progress in my career and I am on €28,000, where is the avenue for me to do so? I need to understand what options and what degree of flexibility are available to me but, at this moment, that detail is not there. Parents need to understand how the flexibility works. If I progress in my career and go from €28,000 to €29,000, how do I notify the Department? How is the child care provider protected in view of the change of income?
Some of the Deputy's questions relate to the workings of the scheme. The Department is working extremely hard to ensure this ambitious objective is achieved and to provide clarity to people on what kind of subsidy they will receive in light of their net household income. This information will be on the website, which we are designing and will have in place before the scheme implementation date of September 2017. If a person's net income changes over time we will make clear how that will ultimately impact on the child care subsidy available. We are working to develop and launch an information scheme to provide the information by the beginning of next summer.
Information and a new website would be very welcome as parents feel a little bit in limbo, as do the crèche providers. Given the new subsidy, does the Minister have any fears about the inflation of fees in crèches? There is a huge concern over this. The child care worker is among the lowest paid in the sector at the moment. They are looking after our most precious and are the first link to education but we are paying them, on average, €10.47 per hour. Is the Minister concerned about increases in crèche charges?
I am happy the Deputy asked that question because we have had discussions about it. Yes, I have a concern over this and there are different ways of addressing it. My primary concern is that, as the child care sector grows and as qualifications and workload increase, people within the sector are paid a better wage for what they do. As we implement the subsidisation programme there are possibilities that the sector will respond in certain ways but I have established an early years forum and I am discussing the issues with the sector. I have provided additional funding in recognition of non-contact time for 2017 and we will continue to discuss the issues as we move towards 2018.
