Dáil Éireann Debate, Tuesday - 30 June 2020
758. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs further to Parliamentary Question No. 904 of 16 June 2020, the spending which may be found to be in breach of spending rules under the Covid-19 subsidy scheme; and if he will make a statement on the matter. [12926/20]
View answer759. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the status of the verification process under the temporary wage subsidy childcare scheme; the number of childcare providers that have been engaged with; and if he will make a statement on the matter. [12927/20]
View answerI propose to take Questions Nos. 758 and 759 together.
The 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 the 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 TWSCS 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 intended purposes: to meet employee pay costs in conjunction with the Revenue operated Temporary Wage Subsidy Scheme and contribute towards ongoing overhead costs. 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.
A verification process, which will involve Pobal communicating with a sample of scheme participants to verify the use of the funding provided under the scheme, will commence in the coming weeks. Funding provided under the wage top up element of the scheme must be used towards payroll in line with the requirements of the scheme. Funding provided under the overhead element of the scheme must be used to meet ongoing overhead costs. Pay costs, capital costs, and costs not related to childcare are examples of non-eligible expenditure under this scheme.
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.
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.
