Dáil Éireann Debate, Wednesday - 20 September 2023
854. Deputy Richard Bruton asked the Minister for Children, Equality, Disability, Integration and Youth how the hourly rate of support for childcare in different age groups is calculated in the different bands of reckonable income. [40348/23]
View answerThe rate for income-related National Childcare Scheme subsidies depends on the applicant’s reckonable income and varies from a minimum rate of €1.40 to a maximum of €5.10 per hour of childcare used. The table below shows the maximum and minimum income-related subsidy rates per hour, which vary according to the child’s age and the child’s education status.
|
Child's Age |
Minimum Subsidy per hour |
Maximum subsidy per hour |
|
Less than 12 months |
€1.40 |
€5.10 |
|
12-24 months |
€1.40 |
€4.35 |
|
3+ years |
€1.40 |
€3.95 |
|
At school (or older than 6 years of age and less than 15 years of age) |
€1.40 |
€3.75 |
• Income below €26,000Applicants with reckonable income (inclusive of any partner’s income) at or below €26,000 per annum qualify for the maximum hourly rate of subsidy depending on the child's age and education stage.
• Income between €26,000 and €60,000For applicants with reckonable income (inclusive of any partner’s income) between €26,000 and €60,000 per annum, the subsidy rate tapers downward as reckonable income rises, declining evenly from the maximum subsidy rate to the minimum subsidy rate.
• Income above €60,000
€60,000 is the maximum income threshold for the income-related subsidy. A family applying for an Income Assessed subsidy whose income exceeds the maximum threshold will receive a subsidy of €1.40 per hour in respect of each child on the application for whom a subsidy has been requested.
The following formula is used to calculate the rate of subsidy:
NS = the minimum subsidy rate (either €0 or €1.40),
XS = the maximum subsidy rate (which varies by age and education status),
MT = the maximum income threshold (€60,000),
BT = the base income threshold (€26,000), and
RI = the reckonable income.
