Dáil Éireann Debate, Tuesday - 24 October 2023
450. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated first year, full-year and annual cost to reduce childcare fees by 50% from September 2024. [46064/23]
View answerThe Deputy has requested the first year, full year and annual costs of reducing childcare fees by 50% from September 2024.
As announced in Budget 2023, the annual cost of increasing the minimum subsidy from €0.50 to €1.40 was estimated to be €121 million. As part of Budget 2024, a further increase in the minimum subsidy from €1.40 to €2.14 per hour effective September 2024 was announced. The 74c increase is calculated by taking the average fee paid by parents on the universal or minimum rate for full-time (i.e 45 hour) fees after existing subsidies have been applied and reducing the balance by 25%.
The first year cost of this increase to the NCS is approximately €35m, while the full year cost is approximately €105m.
Applying the same methodology, the estimated annual cost of double this change is in the region of €191 million for a full year and €64m if applied from the start of the programme year (September).
As fees can vary from service to service and depending on parents usage, impact estimates must be made as an average of the overall parental financial contribution to fees for their early learning and childcare.
The impact of this change will also vary based on the income level of the applicant. Parents on the maximum subsidies under the income assessed subsidy, that is those on annual income of €26,000 and below will see no change in their fee, as they are already in receipt of the highest available subsidy. For remaining parents, with income above €26,000 under the income assessed subsidy, reductions in fees will vary according to income levels, with those currently in receipt of the lowest subsidies benefiting the most and vice versa.
