Dáil Éireann Debate, Tuesday - 1 March 2022
238. Deputy Kathleen Funchion asked the Minister for Finance the estimated total cost of the temporary wage subsidy childcare scheme and employment wage subsidy scheme for the childcare sector up to 30 April 2022. [11671/22]
View answerThe objective of the Employment Wage Subsidy Scheme (EWSS) is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the Covid-19 crisis. It is an economy-wide scheme that operates across all sectors.
In money terms, the overall support provided to-date (24 February) by EWSS is over €7.5 billion comprising direct subsidy payments of €6.51 billion and PRSI forgone of over €1 billion to 51,900 employers in respect of over 717,300 employees. In relation to TWSS, in total €2.8 billion was paid to over 67,000 employers in respect of almost 690,000 employees. Overall to-date, support well in excess of €10 billion has been provided across the two wage subsidy schemes.
I am advised by Revenue that the amount of support provided to the childcare sector from March 2020 to January 2022 (the latest month for which data are available) through the Temporary Wage Subsidy Scheme (TWSS) and the Employment Wage Subsidy Scheme (EWSS) amounts to approximately €677m. The breakdown by scheme and year is set out in the table below. These estimates are based on childcare providers registered with the Department of Children, Equality, Disability, Integration and Youth.
|
|
2020 €m |
2021 €m |
2022 (Jan) €m |
|
EWSS |
116 |
399 |
32 |
|
TWSS |
130 |
NA |
NA |
While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, positions of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.
Since the introduction of EWSS there has been regular and, where necessary, detailed engagement between my Department and the Department of Children, Equality, Disability, Integration and Youth (D/CEDIY). Analysis undertaken by D/CEDIY informed the approach taken with regard to the childcare sector. Childcare business will continue to benefit from the EWSS exemption until end April 2022.
As announced by my colleague, Minister O’Gorman, it is intended to put in place a transition fund between May and August 2022, which early learning and childcare providers can access. From September 2022, a major new funding stream will be introduced, to support providers in meeting their operating costs in return for a commitment that fees to parents will not increase.
