The Affordable Childcare Scheme will provide progressive financial support for childcare costs, with the largest subsidies going to the families with the lowest incomes. Where a family has childcare needs and has a net family income below €47,500, they will be eligible for an income-related subsidy under the scheme. The highest rates of subsidy will apply to families with net incomes below €22,700, which includes all families whose incomes are below the relative income poverty line. Approximately 99% of current beneficiaries of targeted childcare schemes will be eligible for a subsidy under the Affordable Childcare Scheme.
I want to emphasise that in any situation where a current beneficiary of the Community Childcare Subvention or any other targeted childcare scheme would see their level of subsidy fall when the Affordable Childcare Scheme is introduced, their current level of support will be maintained for a transitional period.
One change from the current targeted schemes is that, under the Affordable Childcare Scheme, if a parent is not engaged in any form of work, education or training, then at most 15 hours of subsidy will be available. If the parent takes up any form of work (including part-time work) or training, they will be eligible for up to 40 hours of subsidy. This approach reflects the fact that one of the core objectives of the Affordable Childcare Scheme is to support labour market activation. The Affordable Childcare Scheme will be a significant support helping families get out of poverty through work, education and training.
When a parent is not in work or training, childcare will be subsidised on a standard hours basis. This approach will mean that this scheme is open - albeit for standard hours rather than enhanced hours - to parents who stay at home to care for their children, and are not taking part in work or training, but who choose to avail of up to 15 hours of childcare per week. In the case of school-going children, the child development objectives are met through school-going hours and, as such, the 15 standard hours childcare applies to non-term time.
There is also a small but important group of families for whom childcare is needed on child welfare grounds or for whom childcare is a necessary early intervention support, and where there is a referral to the Community Childcare Subvention scheme by Tusla. For the Affordable Childcare Scheme, it is proposed that, where such a referral is made, families would automatically qualify for a subsidy without having to satisfy any income or work/study test. Tusla would recommend the hours of childcare needed, i.e. whether an enhanced or standard subsidy is required. The scheme would then provide the maximum rate of subsidy in respect of those hours of care, and no payment would be asked of the parents in these circumstances. This approach is consistent with current practice under CCS and is critical to supporting strong child welfare and protection practices. My officials are currently in discussion with Tusla in relation to the way in which this referral process will operate in the Affordable Childcare Scheme.
