Dáil Éireann Debate, Tuesday - 27 July 2021
1203. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated first-year and full-year cost of increasing the affordable childcare subsidy for children under three years of age by €1 per hour; and if he will make a statement on the matter. [39427/21]
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 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 universal subsidy is available to all families with children aged between 24 weeks and 3 years (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 income. 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.
The increase in cost for the universal subsidy from €0.50 to €1.50 is estimated as an extra 26m per year and 9m in year one assuming it commences at the start of the programme year (commences in late August).
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 remains committed to the success of the NCS in benefiting families across Ireland, and envisage further growth in the NCS in late 2021 as families make greater use of childcare services as we recover from the impact of Covid-19.
