Dáil Éireann Debate, Wednesday - 1 May 2024
237. Deputy Rose Conway-Walsh asked the Minister for Children, Equality, Disability, Integration and Youth the cost to the Exchequer of a 1 cent increase in the national childcare subsidy; and if he will make a statement on the matter. [19902/24]
View answerThe Deputy has requested the cost of increasing the National Childcare Scheme (NCS) subsidy by 1 cent. It is assumed the Deputy is referring to an increase of 1 cent to the NCS minimum (universal) subsidy.
The NCS minimum (universal) subsidy is available to all families with children under 15 years old. This subsidy is not means tested and provides €1.40 per hour towards the cost of a registered childcare place for a maximum of 45 hours per week. A 1 cent increase to the universal subsidy would result in a universal subsidy of €1.41 per hour.
The cost of this change was determined using the ESRI SWITCH model and applied to my Departments current cost estimates for the NCS for 2024. Using this method, the cost of this change was estimated at €1.37million.
This estimate comes with some important caveats. Firstly, the above costing is 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 been factored into the above costing.
Finally, the costing is made 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 learning and childcare for the first time.
