Dáil Éireann Debate, Tuesday - 2 May 2017
1429. Deputy Fergus O'Dowd asked the Minister for Children and Youth Affairs her views on concerns raised in correspondence (details supplied) in relation to the affordable child care scheme in County Louth; and if she will make a statement on the matter. [19176/17]
Amharc ar fhreagraAs I announced on 12 April, a number of significant changes will be made to the existing targeted childcare schemes this September, including an increase of up to 50% in subsidy-rates. The Affordable Childcare Scheme, which will replace the existing targeted schemes, will be introduced at a later date, when it is fully ready for operation.
The Deputy’s question relates to the potential impact of the rules proposed for the Affordable Childcare Scheme, in particular the rule limiting childcare subsidies to 15 hours per week for families where a parent is not engaged in any form of work or training. This rule reflects a balance between the scheme’s objectives of supporting child development and supporting labour market participation for families with low incomes, and thereby contributing to the reduction of child poverty.
In determining the rules for the scheme, I want to ensure a balanced approach to eligibility: while people will qualify for a subsidy based purely on income, parents’ participation in work or training will determine the number of hours of subsidy available. When parents are engaged in work (including even small amounts of part-time work or participation in labour market activation programmes) or in education or training, they will be eligible for an enhanced hours subsidy of up to 40 hours per week. When parents are not in work or training, childcare will nevertheless be subsidised on a standard hours basis of up to 15 hours per week, reflecting the benefits for all children of part-time participation in childcare. I believe that this is a reasonable approach.
It will mean that the Affordable Childcare Scheme will be open – albeit for standard hours rather than enhanced hours – to parents who stay at home to care for their children, and are not taking part in any work or training, but who choose to avail of up to 15 hours of childcare per week. In the case of school-going children, the child development objectives are met through school-going hours and, as such, the 15 standard hours childcare will apply only to non-term time.
I wish to emphasise that I intend to take a very inclusive approach in defining “work” and “study” for the purpose of the Affordable Childcare Scheme. As a consequence, many social welfare recipients will benefit from the enhanced hours subsidy (i.e. up to 40 hours per week), as many social welfare payments allow a parent to work part-time, for a certain number of hours or days per week.
I acknowledge that where a parent is at home and not engaged in any work or study, the family will not benefit from subsidised after-school childcare during term-times, because of the 15-hour limit. However, I believe it is right that the Scheme should actively support labour market participation through linking the number of hours of subsidy to a family’s need for childcare for the purpose of work, education or training. Supporting labour market participation for low-income families is an essential part of our efforts to reduce child poverty.
There is also a small but important group of families for whom childcare is needed on child welfare grounds or for whom childcare is a necessary early intervention support, and where there is a referral by Tusla. For the Affordable Childcare Scheme, it is proposed that, where such a referral is made, families would automatically qualify for a subsidy without having to satisfy any income or work/study test. Tusla would recommend the hours of childcare needed. The scheme would then provide the maximum rate of subsidy in respect of those hours of care, and no payment would be asked of the parents in these circumstances. This approach is consistent with current practice under CCS and is critical to supporting strong child welfare and protection practices. My officials are currently in discussion with Tusla in relation to the way in which this referral process will operate in the Affordable Childcare Scheme.
