Dáil Éireann Debate, Tuesday - 5 December 2023
469. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated first year, full year and annual cost to increase the universal national childcare subsidy by 25% effective from January 2024. [53424/23]
View answerThe Deputy has requested the first year, full year and annual costs of increasing the NCS universal subsidy by 25% from January 2024.
A 25% increase in the NCS Universal subsidy results in a new NCS universal subsidy of €1.75 per hour.
The ESRI SWITCH model was used to estimate the quantum of the change, this was then applied to the Departments baseline cost of the NCS for 2024. Using this method, it was estimated that the cost of this change from January 2024 is €44m. Because of this January introduction, the first year, full year and annual cost of this change would be identical.
These estimates come with some important caveats. Firstly, the above costings are based on the NCS as it operates currently and it rates as time of this PQ being asked. As part of Budget 2024 I announced an increase to the NCS universal subsidy from €1.40 per hour to €2.14 and an extension of the NCS to a larger cohort of childminders from September 2024. As these are not yet implemented, the impact of these changes have not be factored into the above costing.
Finally, the costings are on the basis of a static system; that is, the model assumes that the level of usage of eligible early learning and childcare remains static. Any changes to subsidies may create a change in behaviours in families, for example, women returning to workforce and using formal early and childcare for the first time.
