In Budget 2006, the Government introduced a number of significant new developments under a new National Childcare Strategy 2006-2010. As part of these developments and to facilitate the delivery of the new Strategy a new Office of the Minister for Children (OMC) was established.
A key component of the National Childcare Strategy is the €575 million National Childcare Investment Programme (NCIP) 2006-2010. The NCIP succeeds the Equal Opportunities Childcare Programme (EOCP) 2000-2006 and unlike the EOCP, the NCIP is entirely Exchequer funded. The NCIP commenced in January 2006 in advance of the closure of the EOCP, thereby facilitating the smooth transition between the closure of the EOCP and the introduction of its successor.
The NCIP aims to provide a proactive response to the development of quality childcare supports and services, which are grounded in an understanding of local needs. The Programme has a target to create 50,000 additional childcare places with a greater focus on pre-school places for 3 to 4 year olds and school age childcare. The additional places will include 5,000 after-school places and 10,000 pre-school education places.
Childcare places are provided by community based not for profit childcare groups and by private childcare providers. One strand of the Programme is directed towards private providers, with maximum capital grant assistance of €100,000 available per facility. Another strand is directed towards community based not for profit providers, with maximum capital grant assistance of €1 million available per facility.
Since the beginning of the NCIP in January 2006, over €40 million has been allocated in capital grant assistance countrywide, which includes almost €12.5 million to 32 community based not for profit childcare groups and almost €21.5 million to 285 private childcare providers. When fully drawn down this funding is expected to lead to the creation of almost 10,000 new childcare places and to the enhancement of over 2,800 existing places. To date, more than 1,000 "Expression of Interest Forms" have been submitted to the 33 City/County Childcare Committees (CCCs), seeking capital funding under the NCIP. These factors are indicative of how successful the NCIP has been to date in stimulating interest in childcare provision.
During 2007, EOCP staffing grants continue to be provided towards the staffing costs of childcare workers, in community based childcare facilities in disadvantaged areas. These grants help to ensure that less advantaged parents in these areas, have access to quality childcare to facilitate access to education, training and employment opportunities. A new programme of staffing grants under the NCIP is expected to be announced during 2007 and will be informed by the outcome of a Value for Money Review of the EOCP which is currently in progress. The Review is expected to be completed in the first half of 2007, following which the procedures and criteria governing the new grant scheme will be made available both generally and to existing staffing grant recipients.
Under the NCIP, the role of the CCCs has been expanded to enable greater flexibility and responsiveness to local needs. This new role includes the assessment of childcare needs across their City or County and supporting the development of quality childcare in areas where service gaps are identified. To this end, additional funding was allocated to the CCCs by my Department for the implementation of their 2006 Supplementary Action Plans and was followed by the allocation of increased funding for the implementation of their 2007 Action Plans. This funding is facilitating the recruitment of additional staff to take account of the expanded role.
A total of over €11 million has been allocated to the CCCs for the implementation of their 2007 Action Plans. In addition, to the role the CCCs play in the co-ordination of quality childcare provision at county/city level, they are mandated to address gaps in childcare training provision. At present, childcare training is delivered by a number of providers including FÁS, VECs and some third level institutions. The National Childcare Strategy 2006-2010 includes a commitment to develop a National Childcare Training Strategy in order to co-ordinate the provision of quality training to meet the growing needs of the childcare sector and to deliver on the targets set for additional childcare places under the NCIP. A target of 17,000 childcare training places has been set under the National Childcare Training Strategy 2006-2010 and the Department of Education and Science, through the OMC, is in the process of developing this Strategy. An Expert Advisory Group has been established and will be supported by a number of representative sub-groups from across the sector. It is expected that this Expert Group will report its findings later this year.
A new Early Childcare Supplement (ECS) of €1,000 per annum was introduced for all children less than 6 years of age from April 2006. This is a direct, non-taxable payment of €250 per quarter year, in respect of each eligible child. In the last quarter of 2006, the ECS was paid in respect of 396,000 children.
A new Childminding Relief was also introduced in Budget 2006. Where an individual minds up to three children in the minder's own home, no tax will be payable on the childminding earnings, provided the amount is less than €10,000 per annum. This threshold was increased to €15,000 in Budget 2007.
To further support parents, Paid and Unpaid Maternity Leave was increased by 4 weeks in 2006 and will be increased by a further 4 weeks in 2007. This will bring the total duration of Paid Maternity Leave to 26 weeks and the total duration of Unpaid Maternity Leave to 16 Weeks from March 2007.