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Childcare Services

Dáil Éireann Debate, Tuesday - 26 April 2022

Tuesday, 26 April 2022

Questions (1097, 1098, 1099)

Colm Burke

Question:

1097. Deputy Colm Burke asked the Minister for Children, Equality, Disability, Integration and Youth the cost of increasing the universal subsidy for children under three years by each of the amounts 50 cent, €1, €2 and €5; and if he will make a statement on the matter. [19323/22]

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Colm Burke

Question:

1098. Deputy Colm Burke asked the Minister for Children, Equality, Disability, Integration and Youth the cost of increasing each of the national childcare scheme rates by €1, €2, €5 and €10; and if he will make a statement on the matter. [19324/22]

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Colm Burke

Question:

1099. Deputy Colm Burke asked the Minister for Children, Equality, Disability, Integration and Youth the cost of increasing the maximum reckonable family income of €60,000 under the national childcare scheme by €2,500, €5,000 and €10,000; the estimated number of families who would benefit from this extension; and if he will make a statement on the matter. [19325/22]

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Written answers

I propose to take Questions Nos. 1097 to 1099, inclusive, together.

There are two types of subsidies available under the National Childcare Scheme:

- Currently, universal Subsidies are available to all families with children under 3 years old. They are also available to families with children over 3 years who have not yet qualified for the free preschool programme (ECCE). This subsidy is not means tested and provides 50c per hour towards the cost of a registered childcare place for a maximum of 45 hours per week.

- Income Assessed Subsidies are available to families with children aged between 24 weeks and 15 years. This subsidy is means tested and will be calculated based on your individual circumstances. Your rate will vary depending on your level of family income, your child’s age and educational stage, and the number of children in your family.

Budget 2022 announced a number of changes to the NCS which will be rolled out this year. The first change will remove the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours, benefiting an estimated 5,000 children from low income families. The second change will extend the NCS universal subsidy to all children under 15 from September 2022, benefiting up to 40,000 children. Full year estimates of these changes have been factored into the costs below but the impact of these changes will not be fully known until Q.4 2022.

The estimated costs based on the scenarios presented are derived from current levels of usage and expenditure and informed by SWITCH, the ESRI tax-benefit model. These individual estimates are based on no behavioural change and should be interpreted with caution. It should be noted that changes to subsidies may result in changes to patterns and levels of usage by families. These changes are likely to be more pronounced at higher rates of increase.

In addition, although the question refers to children under 3 years old, as noted above from September 2022 universal will available for children under 15 and the costs have been assessed on an under-15 basis

Based on the above, the follow estimated costs have been extrapolated and rounded:

Cost of increasing the universal subsidy for children by each of the amounts:

- 50 cent  - €50 million

- €1 - €105 million

- €2 - €210 million

- €5 - €480 million

Cost of increasing each of the NCS rates by:

- €1 - €145 million

- €2 - €290 million

- €5 - €730 million

- €10 - €1.45 billion

Cost and the estimated number of families who would benefit from increasing the maximum reckonable family income of €60,000 under the national childcare scheme by:

- €2,500 - €6 million benefiting approximately 4,500 children

- €5,000 - €12 million benefiting approximately 5,200 children

- €10,000 - €24 million benefiting approximately 12,500 children.

Question No. 1098 answered with Question No. 1097.
Question No. 1099 answered with Question No. 1097.
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