From 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. This new scheme will replace the existing targeted childcare programmes with a single, streamlined and more user-friendly scheme and is intended to provide “wraparound care for pre-school and school-age children.
The universal element of the Scheme will be available to all families with children between the age of 6 months and 36 months (or until the child qualifies for the free pre-school programme if later than 36 months), who are attending a registered childcare provider.
The targeted element of the scheme will be available to families with children between the age of 6 months and 15 years, with eligibility based on net parental income. 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. The income thresholds increase where there is more than one child in a family, so a family with two children under 15 years of age would have a maximum net income threshold of €51,300 and a family with three children under 15 years would have a maximum net income threshold of €55,100.
On Friday 28th October 2016 I published a detailed policy paper on the new Affordable Childcare Scheme; this is available on my Department's website and sets out detailed plans for the scheme.
My Department is currently carrying out a public consultation on the detail of the scheme’s design. The Department will use consultation feedback to help refine specific design features as well as to consider options for future development.