Dáil Éireann Debate, Tuesday - 15 June 2021
1002. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of increasing the subsidy under the affordable childcare scheme from €20 to €100 per child per week. [31663/21]
View answerThe introduction of the National Childcare Scheme (NCS) was a landmark moment for making high quality childcare more affordable and accessible to families in Ireland.
The NCS is designed to be flexible and highly inclusive, and aims to meet the needs of those families who need it the most. The Scheme is based on the principle of progressive universalism and has regard to the best interests of children. The universal subsidy is available to all families with children aged between 24 weeks and 36 months (or until the child qualifies for the Early Childhood Care and Education programme if later). The universal subsidy is based on the child’s age, and not on family income levels.
It is assumed that the €20 referred to in the question refers to the maximum universal rate as it existed prior to Budget 20. The maximum universal subsidy has increased from €20 per week to €22.50 per week since September 2020.
The current cost of a universal subsidy is €0.50 per hour and this equates to a maximum of €22.50 per week per child. Increasing the universal subsidy to €100 per week for 45 hours would require a subsidy of €2.22 per hour and would increase the total scheme cost by approximately €65million per annum. This costing also includes the cost of applying €100 as a base rate for the income assessed subsidies.
These figures are calculated using a funding model of the NCS which is based on key assumptions around the preferences and behaviours of parents relating to working hours and childcare choice, rates of growth in demand, and certain metrics are extrapolated from available data. It is also based on a return to the expected growth levels which were estimated prior to the impact of Covid-19.
