Dáil Éireann Debate, Thursday - 13 April 2017
382. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the cost of increasing each income threshold of the single affordable child care scheme by €100, €200, €300, €400, €500, €600, €700, €800, €900 and €1,000 respectively. [19100/17]
Amharc ar fhreagra386. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the cost of increasing each income threshold of the single affordable child care scheme by 5%, 10%, 15% and 20% respectively. [19135/17]
Amharc ar fhreagraI propose to take Questions Nos. 382 and 386 together.
The detailed information sought by the Deputy is not currently available in the format requested. Officials in my Department are compiling this information, which will be supplied to the Deputy in no later than 10 working days.
The following deferred reply was received under Standing Order 42A for Question No. 382.
The Affordable Childcare Scheme will have two income-thresholds: the "base income threshold" and the "maximum income-threshold". Families that benefit from childcare subsidies under the Scheme and whose incomes are below the base income-threshold will be awarded the maximum subsidy-rate. Families whose incomes are above the maximum income-threshold will not benefit from any income-related subsidy, though if their child is younger than the qualifying age for the ECCE scheme they may benefit from a universal childcare subsidy.
The income-thresholds proposed for the Affordable Childcare Scheme are €22,700 for the base income-threshold and €47,500 for the maximum income-threshold. Given these income-thresholds, and the subsidy-rates currently proposed for the scheme, it is estimated that the full-year cost of the scheme will be approximately €150m.
In setting the base and maximum income-thresholds, a number of factors were considered such as the poverty line, income distribution, disincentive effects, continuity with current targeted childcare schemes, and cost and cost effectiveness.
It is estimated that increasing the base income-threshold from €22,700 to €27,500, while keeping other elements of the scheme unchanged, would increase the cost of the scheme by approximately €19m. On this basis, it is estimated that increasing the base income-threshold by €100 (from €22,700 to €22,800) would increase the cost of the scheme by approximately €400,000, and each additional €100 increase within this income-range would cost an additional €400,000. An increase of €1,000 (from €22,700 to €23,700) would accordingly cost approximately €4m.
It is estimated that increasing the maximum income-threshold from €47,500 to €52,500, while keeping other elements of the scheme unchanged, would increase the cost of the scheme by approximately €8m. On this basis, it is estimated that increasing the maximum income-threshold by €100 (from €47,500 to €47,600) would increase the cost of the scheme by approximately €160,000, and each additional €100 increase within this income-range would cost an additional €160,000. An increase of €1,000 (from €47,500 to €48,500) would accordingly cost approximately €1.6m.
It must be stressed that all cost figures for the Affordable Childcare Scheme are estimates, given the uncertainty surrounding the impact on demand for childcare of changes to the net price of childcare to parents that result from the scheme.
The following deferred reply was received under Standing Order 42A for Question No. 386.
The Affordable Childcare Scheme will have two income-thresholds: the "base income threshold" and the "maximum income-threshold". Families that benefit from childcare subsidies under the Scheme and whose incomes are below the base income-threshold will be awarded the maximum subsidy-rate. Families whose incomes are above the maximum income-threshold will not benefit from any income-related subsidy, though if their child is younger than the qualifying age for the ECCE scheme they may benefit from a universal childcare subsidy.
The income-thresholds proposed for the Affordable Childcare Scheme are €22,700 for the base income-threshold and €47,500 for the maximum income-threshold. Given these income-thresholds, and the subsidy-rates currently proposed for the scheme, it is estimated that the full-year cost of the scheme will be approximately €150m.
In setting the base and maximum income-thresholds, a number of factors were considered such as the poverty line, income distribution, disincentive effects, continuity with current targeted childcare schemes, and cost and cost effectiveness.
It is estimated that increasing the base income-threshold from €22,700 to €22,500 which is an increase of 21%, while keeping other elements of the scheme unchanged, would increase the cost of the scheme by approximately €19m. On this basis, it is estimated that increasing the base income-threshold by 5% (from €22,700 to €23,835) would increase the cost of the scheme by approximately €4.5m, and each additional 5% increase within this income-range would cost an additional €4.5m. An increase of 20% (from €22,700 to €27,240) would accordingly cost approximately €18m.
It is estimated that increasing the maximum income-threshold from €47,500 to €57,500 which is an increase of 21%, which keeping other elements of the scheme unchanged, would increase the cost of the scheme by approximately €16m. On this basis, it is estimated that increasing the maximum income-threshold by 5% (from €47,500 to €49,900) would increase the cost of the scheme by approximately €3.8m, and each additional 5% increase within this income-range would cost an additional €3.8m. An increase of 20% (from €47,500 to €57,000) would accordingly cost approximately €15m.
It must be stressed that all cost figures for the Affordable Childcare Scheme are estimates, given the uncertainty surrounding the impact on demand for childcare of changes to the net price of childcare to parents that result from the scheme.
