Dáil Éireann Debate, Thursday - 13 October 2022
127. Deputy Seán Haughey asked the Minister for Children, Equality, Disability, Integration and Youth the way in which the proposed average 25% reduction in fees for childcare users will apply to recipients of income-assessed national childcare scheme subsidies and those who only receive a universal subsidy; if the overall progressivity of NCS subsidies are retained after the new rates come into effect; and if he will make a statement on the matter. [50385/22]
View answerBudget 2023 introduced further enhancements to the NCS to take effect from January 2023. An additional investment in the National Childcare Scheme will increase the minimum subsidy from 50c to €1.40. This translates to up to €63.00 off families’ weekly bill for early learning and childcare per child. With up to €22.50 currently available per week, this represents up to an additional €40.50 off weekly costs.
For those in receipt of the universal subsidy they will see their subsidy increased from 50c per hour to €1.40. For those in receipt of income assessed subsidies, it will mean that any family who is not already at the maximum hourly subsidy will see an increase in their subsidy (see table below). For those who have an award less than the maximum subsidy, the amount of the increase will taper down as they approach the maximum hourly subsidy.
Table 1: Maximum Income Assessed Subsidy
|
Child’s age |
Per Hour |
|
24 weeks to 12 months |
€5.10 |
|
12 to 35 months |
€4.35 |
|
3 years or older and not yet in school |
€3.95 |
|
School age (or 6 years to 15 years) |
€3.75 |
In terms of income the largest increase (an extra 90c per hour) will be seen by those on net income of €60,000 and above; all families with reckonable income of €26,000 and above will see some level of increase with the rate of increase tapering off as they move closer to €26,000. Those at €26,000 and below are already on the highest levels of subsidy.
While the greatest increase in subsidies are seen by those with higher levels of reckonable incomes, the overall progressivity of the NCS remains intact with those at the lower end receiving the maximum awards available under the NCS.
The exact reduction in costs will be unique to each family depending on their personal circumstance and childcare needs. However, a subsidy copayment tool will be made available in the coming weeks to help estimate increased subsidies available. It will be available on ncs.gov.ie
