Dáil Éireann Debate, Tuesday - 16 June 2020
904. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the way in which the verification processes will be implemented as outlined in the temporary wage subsidy childcare scheme; the estimated amount that will be recouped from same; the reason the guidelines regarding verification were updated; the purpose for which the funds will be used; and if she will make a statement on the matter. [10520/20]
View answerThe COVID-19 pandemic has resulted in an unprecedented situation that has required a series of emergency responses from the Government.
I am acutely aware of the particular impact the pandemic and the emergency measures have had on childcare providers. I am also very conscious of the importance of childcare sector, particularly in the context of the current conditions and with a view to supporting the economy as we move beyond this crisis.
Recognising this, the Temporary Wage Subsidy Childcare Scheme (TWSCS) was launched on April 15th.
The aim of the TWSCS is threefold:
- to support the sustainability of the Early Learning and Care and School-Age Childcare Sector so that it is in a position to reopen after COVID-19;
- to provide parents with a reassurance that they are not required to pay fees during this COVID-19 crisis, while providing them with reassurance that they will maintain places for their children;
- and to give Early Learning and Care Educators security and retain these vital Educators in the sector.
To achieve this, the Wage Subsidy Childcare Scheme provides funding towards a portion of staff wages and a contribution towards services' overhead costs. Details of how to sign up have been made available through the Pobal programme platform used by childcare providers.
My Department recognises the importance of robust oversight of Exchequer funding. This includes ensuring that funds provided under the TWSCS are used for purposes intended: to meet employee pay costs in conjunction with the Revenue operated Temporary Wage Subsidy Scheme and contribute towards ongoing overhead costs. Where the funding provided is not used for these purposes, it may be appropriate to recoup. As part of ensuring that the TWSCS is fully understood by participants, my Department and Pobal have provided extensive information on this scheme, including the administrative and verification requirements.
My Department may seek to recoup where there is a risk to Exchequer funding arising from a breach in the terms of the Funding Agreement. Should the verification process identify any such breaches, funds may be sought to be recouped by the Department or netted off against future payments. It is not possible to state how much will be recouped at this present time as the scheme is ongoing.
My Department will take a reasonable and supportive approach to assessing the use of funding provided to services in this difficult time. I hope that all participating providers will use the money provided under the scheme in the manner set out in the Funding Agreement. A wide variety of items qualify as eligible expenditure, and my Department's priority is to support services to reopen in line with public health advice.
The TWSCS builds on the wider provisions by Government and also recognises the unique place and importance of the childcare sector. Further supports and funding are available from my Department including the Programme Support Payment, which will be paid to eligible services in June. Services may also be eligible for the Restart Grant for Small Business, administered by Local Authorities, and for other supports from the Department of Business, Enterprise and Innovation.
I would also note there are supports available to improve the sustainability of services during normal times, and these remain available to services which may still be facing regular challenges on top of the difficulties imposed by the pandemic.
