Dáil Éireann Debate, Tuesday - 8 November 2016
35. Deputy Gino Kenny asked the Minister for Children and Youth Affairs her views on whether €12 million is substantial enough to support persons on the lowest threshold or income; if the support to be provided is realistic enough to meet the needs of low income workers; and if she will make a statement on the matter. [33543/16]
Amharc ar fhreagraI am satisfied that the new scheme is properly funded to support people on the lowest incomes. Budget 2017 provided an additional €19m to enable the introduction of a new single Affordable Childcare Scheme from September 2017. This is in addition to the existing funding which supports the current targeted schemes and which equates to €87m annually. The full year cost of the scheme will be approximately €150m.
From September 2017, the new Affordable Childcare Scheme will:
- replace the existing targeted subsidisation schemes with a new streamlined and simplified scheme which is more accessible for both parents and providers,
- provide a fair and consistent scheme of progressive financial support towards the cost of childcare, with a particular initial focus on lower income families but also incorporating universal supports, and
- provide a robust and flexible platform for future investment in childcare in Ireland.
Budget 2017 provided an additional €19m to enable the introduction of a new single Affordable Childcare Scheme from September 2017. However, this is in addition to the existing funding which supports the current targeted schemes and which equates to €87m annually. The full year cost of the scheme will be approximately €150m.
The new scheme will make childcare more affordable, and will enable both universal and targeted subsidies for parents towards their childcare costs. In 2017, the number of children benefiting from the new Affordable Childcare scheme is estimated at 79,000. This includes 25,000 children who will benefit from the universal subsidy. An estimated 54,000 children will benefit from the targeted subsidies, including 31,500 children who already receive support under the current targeted schemes and 22,500 new beneficiaries.
Under the targeted element of the scheme, the maximum income threshold ensures that all families within the bottom 5 income deciles should receive some level of support. However, the scheme also provides a flexible platform for future investment, allowing income thresholds and subsidy rates to be adjusted over time so as to expand support to more families.
