Dáil Éireann Debate, Tuesday - 8 November 2016
47. Deputy Bríd Smith asked the Minister for Children and Youth Affairs the provision to be provided to new entrants to training and employment child care, TEC, schemes to still be able to afford child care in view of the fact that currently there is provision for a transition period for parents on TEC schemes; and if she will make a statement on the matter. [33542/16]
View answerFrom September 2017 a new Affordable Childcare scheme will be introduced which will provide financial support for parents towards the cost of childcare. The new scheme will provide a system from which both universal and targeted subsidies can be provided towards the cost of childcare.
The new Affordable Childcare Scheme, which will replace the existing targeted childcare programmes, aims to:
- streamline the existing targeted schemes to make them more accessible for both parents and providers,
- provide a fair and consistent scheme of progressive financial support towards the cost of childcare, with a particular focus, at least initially, on lower income families but also incorporating universal supports, and
- provide a robust and flexible platform for future investment in childcare in Ireland.
By achieving the above aims, it is intended that the new scheme will contribute to:
- poverty reduction in Ireland,
- ensuring that access to affordable childcare is not a barrier to labour market participation, including female labour market participation,
- promoting positive child outcomes,
- narrowing the gap in attainment between more and less advantaged children by enabling all children to access high quality, affordable childcare, and
- driving quality across the sector.
Under the scheme, a progressive system of income related subsidies will be available to all parents with children aged between 6 months and 15 years, with eligibility for a subsidy based on net parental income, i.e. the combined income (or sole income in the case of a one parent family) net of income tax, PRSI, USC and certain allowable deductions, including a ‘multiple child deduction’ which recognises the cumulative effect on families of childcare costs for multiple children.
All parents with children between the age of 6 months and 36 months with net incomes above the maximum income level will receive a universal subsidy towards their cost of childcare. Parents with net incomes below the maximum income threshold will receive a higher (targeted) subsidy rate. The rate that they receive is dependent on their net income as a tapered subsidy applies which reduces as parental income increases until the subsidy reaches the universal rate of €0.50 per hour.
Under the current programmes, including the TEC programme to which the Deputy refers, there are many families with low income levels who are not currently able to access subsidised childcare because of the requirement to be in receipt of certain state benefits or attending certain training programmes.
The benefits of moving to an income basis for eligibility under the new scheme include:
- Clarity, with a move away from a complex array of eligibility criteria to a single, clear basis.
- Reduction of welfare traps and increased support for progression into employment and retention in employment.
- Equity, in ensuring that low-income working families are not excluded from benefitting from subsidised childcare.
It is anticipated that the vast majority of people (95%) who avail of the current targeted childcare schemes will benefit from change to the new Affordable Childcare Scheme. Furthermore, 'saver provisions' will mean that nobody will be made worse off in the immediate transition to the new scheme, i.e people will either gain or have their subsidy protected for a transitional period.
