Dáil Éireann Debate, Thursday - 17 November 2022
109. Deputy Jennifer Murnane O'Connor asked the Minister for Children, Equality, Disability, Integration and Youth if he intends to reform the national childcare scheme and to examine ways in which it can better support lower-income families; and if he will make a statement on the matter. [56877/22]
View answerThe National Childcare Scheme (NCS) is the first ever statutory entitlement to support for childcare costs in Ireland. The NCS provides financial support to help parents to meet the cost of childcare. Introduced in November 2019, the Scheme has been designed on the principle of progressive universalism ensuring that families on the lowest incomes receive the greatest level of support.
The NCS has anti-poverty, or disadvantage, objectives built in by encouraging work or training. For example, where parents are engaged in work or study, the NCS subsidised up to 45 hours per week. Families not engaged in employment or education can still benefit under the Scheme by receiving up to 20 hours per week.
The National Childcare Scheme (NCS) provides parents with financial support towards childcare costs. There are three types of subsidy provided through the NCS:
Universal subsidies are available to all families with children between 24 weeks and 15 years of age. This subsidy is not means tested and currently provides 50c per hour towards the cost of a registered early learning and childcare place for a maximum of 45 hours per week. This will increase to €1.40 per hour from 2 January 2023.
Income Assessed Subsidies are available to families with children aged between 24 weeks and 15 years. This subsidy is means tested and is be calculated based the applicants level of family income, the child’s age and educational stage, and the number of children in a family. It can be used towards the cost of a registered early learning and childcare place for up to a maximum of 45 hours per week. Families on a lower reckonable income will receive a higher income assessed subsidy.
The Sponsorship arrangement available under the National Childcare Scheme (NCS) makes special provision for vulnerable children. The NCS Sponsorship arrangement allows designated bodies to refer children to the Scheme where childcare is needed on child welfare, protection, family support or other specified grounds. Where a referral is made by a Sponsor body, the family will automatically qualify for a subsidy without having to satisfy the Scheme’s eligibility, income or enhanced hours requirements. The Scheme will pay the full cost of the childcare for families referred to the Scheme by a Sponsor Body.
A recent review of the NCS revealed that, as a proportion of total family early learning and childcare costs, 6% of families receiving NCS support reported that all early learning and childcare costs were covered by the NCS, while 38% reported that half or more of their costs were covered by the NCS.
Since the NCS review was undertaken, a further package of measures to directly address the costs of early learning and childcare were announced including:
The removal of the practice of deducting hours spent in pre-school or school from NCS awards (wraparound care). This means that parents are able to use their full awarded subsidised NCS hours regardless of whether their children are in pre-school or school. Also, from September the universal subsidy has been extended to include all children under 15 years of age.
Additional funding of €121 million has been allocated to the NCS from January 2023 so all families accessing registered early learning and childcare will receive a minimum hourly NCS subsidy of €1.40 off the cost of early learning and childcare. With the current minimum hourly NCS subsidy set at €0.50 per hour, this represents an additional €0.90 per hour off the cost of early learning and childcare. This translates to up to €63.00 off families’ weekly bill for early learning and childcare per child.
From 2nd of January 2023, any family who is not already at the maximum hourly subsidy under NCS will see an increase in their subsidy. For those who receive a subsidy based on an income assessed subsidy, the amount of the increase will taper down as they approach the maximum hourly subsidy rate.
Later this year, my Department will commence the process for a end of year three review of the NCS.
