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Childcare Services

Dáil Éireann Debate, Tuesday - 5 April 2022

Tuesday, 5 April 2022

Questions (556)

Claire Kerrane

Question:

556. Deputy Claire Kerrane asked the Minister for Children, Equality, Disability, Integration and Youth if he will consider increasing the subsidy under the national childcare scheme in recognition of the increase in crèche fees due to increased running costs for crèches to support parents; and if he will make a statement on the matter. [18028/22]

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Written answers

The package of measures announced in Budget 2022, which will be implemented throughout the course of 2022, is designed to ensure that fees to parents do not increase and that the full affordability benefits of the National Childcare Scheme (NCS) are felt without being absorbed in fee increases.

The NCS comprises two types of subsidies:

- A universal subsidy is payable for children between the ages of 24 weeks and 36 months (or until the child qualifies for the Early Childhood Care and Education (ECCE) programme if later) who are availing of childcare services from an approved childcare service provider. The universal subsidy is not means-tested and is available to all qualifying families of any income level.

- An income-related subsidy is payable for children from 24 weeks to 15 years of age who are availing of childcare services from an approved childcare service provider. The level of subsidy is determined by the family’s assessable income (i.e. gross income minus tax, PRSI and other deductibles and minus any applicable multiple child discount).

As part of Budget 2022, I announced two changes to the NCS which will result in more parents getting more subsidised hours of early learning and childcare in Tulsa registered services.

- The universal subsidy will be made available to all families with children under 15 years of age.

- There will be a change in the practice of deducting hours spent in pre-school or school from the entitlement to income-related subsidised NCS hours. This means that the full awarded subsidised NCS hours will be available regardless of whether children are in pre-school or school.

In addition, a new Core Funding stream will be introduced for ELC and SAC services to support improved quality, affordability, and sustainability. Core Funding will require a commitment not to increase fees to parents from the September 2021 rates. This means that parents will not be faced with fee increases, and the full affordability effects of the NCS and ECCE Pre-school Programme, will be felt by parents.

Providers who do increase their fees will be required to revert to September 2021 levels on or before September 2022 in order to be eligible for the new Core Funding stream.

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