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Childcare Services

Dáil Éireann Debate, Tuesday - 15 June 2021

Tuesday, 15 June 2021

Questions (1006)

Kathleen Funchion

Question:

1006. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated additional cost in 2022 of increasing the universal minimum subsidy across the affordable childcare scheme, assuming the minimum targeted subsidy is increased so as never to be below the universal subsidy, in 50 cent intervals up to an additional €4.50 reaching €5.00, assuming a start date of September; the estimated cost for a full year; and the estimated number of children who would benefit. [31670/21]

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Written answers

The 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 objectives of the NCS are to improve outcomes for children, reduce poverty, have a positive impact on gender equality in relation to labour market participation, tangibly reduce the cost of childcare for thousands of families, and establish a sustainable platform for investment in the Irish childcare sector for decades to come.

The NCS entails a fundamental shift away from subsidies grounded in social protection entitlements, and towards a comprehensive and progressive system of universal and income-based subsidies. 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. Parents do not have to undergo an assessment to avail of this subsidy. The universal subsidy is currently provided at a rate of €0.50 per hour towards the cost of a registered childcare place up to a maximum of 45 hours a week.

As the universal subsidy is underpinned by age, an increase in the number of children availing of the subsidy is not associated to an increase of universal rate levels. However, in May 2021 the total number of unique children on the universal subsidy was almost 10,900 out of a total of 43,000 children in receipt of a subsidy under the NCS. The total number of children accessing the NCS is estimated to rise from September 2021 to 48,000 by the end of 2021. Approximately a quarter i.e. 12,000, of the total number of children will be in receipt of a universal subsidy.

Additional cost of increasing the Universal Subsidy

50c*

€11m

€1

€18.2m

€1.50

€37m

€2

€56.6m

€2.50

€77.1m

€3

€98m

€3.50

€120.5m

€4

€143.5m

€4.50

€167.4m

€5

€192.1m

*current universal subsidy

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.

My Department is fully committed to the success of the NCS in benefiting families across Ireland, and envisage its further growth in late 2021 as families make greater use of childcare services as we recover from the impact of Covid-19.

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