National Childcare Scheme

Dáil Éireann Debate, Tuesday - 15 October 2019

Tuesday, 15 October 2019

Questions (574, 575, 576)

Anne Rabbitte

Question:

574. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the number of children who will benefit from the universal subsidy provided by the national childcare scheme. [41660/19]

Anne Rabbitte

Question:

575. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the number of children that will benefit from the targeted subsidy provided by the national childcare scheme. [41661/19]

Anne Rabbitte

Question:

576. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the level of targeted childcare subsidy that corresponds to each €5,000 income increment between €0 and €60,000 that is €0 to €5,000 and €5,000 to 10,000. [41662/19]

Written answers

Minister for Children and Youth Affairs

I propose to take Questions Nos. 574 to 576, inclusive, together.

The introduction of the new National Childcare Scheme is a landmark moment for making high quality childcare more affordable and accessible to families in Ireland. The Scheme’s objectives are to improve outcomes for children, reduce poverty, facilitate labour activation, tangibly reduce the cost of childcare for tens of thousands of families, and establish a sustainable platform for investment in the Irish childcare sector for decades to come.

As the Deputy will be aware, Budget 2020 provided that the maximum subsidised hours available under the Scheme will be increased from September 2020. The maximum "enhanced" hours will increase from 40 to 45 hours. This will be of particular benefit to school age children who need childcare before or after school, as well as parents juggling long working hours and commuting schedules. The maximum "standard" hours subsidy will also increase from September 2020 from 15 to 20 hours. This will benefit families where parents are not working or studying. This will support the Scheme’s objective of promoting employment, reducing poverty and improving outcomes for children.

The following table provides answers the Deputy's question. In answering the question the following is noted:

- As the minimum income threshold is €26,000, the top rate of subsidy applies to all net incomes below this.

- DCYA income models use a midpoint for each income increment as the subsidy tapers depending on income. That is, a person at the lowest point of an income increment will receive more than the stated example and a person at the highest point of an income increment will receive less than the stated example. The information requested is presented in the “midpoint” form.

Reckonable Income	Rate per hour if your child is 0 - 1 years old	Rate per hour if your child is 1 - 3 years old	Rate per hour if your child is over 3 and not yet in school	Rate per hour if your child is School Age
€22,500	€5.10	€4.35	€3.95	€3.75
€27,500	€4.90	€4.18	€3.78	€3.58
€32,500	€4.22	€3.61	€3.19	€3.03
€37,500	€3.54	€3.05	€2.61	€2.48
€42,500	€2.87	€2.48	€2.03	€1.93
€47,500	€2.19	€1.92	€1.45	€1.38
€52,500	€1.51	€1.35	€0.87	€0.83
€57,500	€0.84	€0.78	€0.33	€0.33

It is challenging to estimate the numbers who will take up the new Scheme, given that this scheme represents a considerable departure from legacy schemes and noting that the saver arrangements will run in parallel. However, it is estimated that approximately 60,000 to 65,000 children will benefit from targeted subsidies and 17,000 children will benefit from universal subsidies.