Dáil Éireann Debate, Thursday - 23 February 2017
447. Deputy Niamh Smyth asked the Minister for Children and Youth Affairs the reason parents are means-tested on their net income and not their disposable income with regard to the affordable child care scheme; her views on the fact that many parents in counties Cavan and Monaghan will not be able to access this scheme because of the criteria; and if she will make a statement on the matter. [9284/17]
Amharc ar fhreagraThe Affordable Childcare Scheme was conceived with fairness and equality at its core. As you are aware the Scheme has two elements, universal and targeted. This means that the Scheme is available to all families with children under 3 years of age.
It is an imperative of the targeted element of the scheme that those on the lowest incomes receive the greatest subsidies. The most transparent, and fairest, way in which to achieve this is to base this element of the scheme on the net income of families. It is fairer and more accessible than the current targeted subsidy programmes, under which many low-income families are not currently able to access subsidised childcare because of the requirement to be in receipt of certain State benefits or attending certain training programmes. If it was based on disposable income, this allowance would generally benefit higher-income earners more, which would run counter to the intention of the Scheme to target supports primarily at those with the lowest incomes. This approach to assessing means is very much in line with most means-assessment Government schemes currently in operation.
While all targeted schemes, by their nature, have thresholds and cut-off points, the new Affordable Childcare Scheme is designed to be flexible, with the ability to adjust income thresholds, subsidy rates and income taper rates, over time and as further Government investment becomes available.
