Richard Boyd Barrett
Ceist:965. Deputy Richard Boyd Barrett asked the Minister for Children and Youth Affairs the projected annual cost of providing free universal access to child care for all children from birth. [27511/16]
Amharc ar fhreagraTuesday, 27 September 2016
Ceisteanna (965)
Freagraí scríofa
The cost of introducing free universal childcare is very hard to forecast as the measure would have a major impact on childcare usage. The scale of this impact is very hard to predict. The fact that the take-up of the ECCE scheme is 95% indicates that a very large proportion of families who do not currently use non-parental childcare might take up the offer of free childcare. In addition, the hours of childcare used each week by every family might increase significantly, if childcare were free to parents.
If these effects on the demand for childcare are ignored, we can estimate the cost of providing childcare only to families who are already using centre-based childcare. Given current numbers and current patterns of childcare usage, if all childcare were free to parents, and if the State paid childcare providers the equivalent of the current market fees for childcare, the total cost to the State is estimated as €498 million per annum. If the free childcare were available not only to those currently using centre-based care, but also to those currently using paid childminders, the total cost would rise to an estimated €888 million per annum. The impact of such a measure on the demand for childcare would lead to an annual cost that could be a multiple of these figures.
The costs of the measures described are heavily dependent on uptake – it is estimated that, at present, 10% of children under three are in formal childcare. To cater for up to 100% of children between 6 months and 5 years of age would require significant capital investment to increase the capacity of the childcare sector.
The cost of childcare for children under one year old is considerably higher than for children participating in ECCE, as a significantly higher ratio of staff to children is required (11:1 for ECCE-age children, 3:1 for children below one year of age).
Given the complexities described above it is not possible to provide an accurate estimate of cost. The Department is currently in the process of procuring an independent review of the cost of care, following which the data required to enable an answer to this question will be available.