Dáil Éireann Debate, Thursday - 11 May 2017
13. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs if she will address concerns that up to 9,000 families that were to receive a targeted level of subsidy under the single affordable childcare scheme will now receive the universal level of subsidy instead; and her plans to support childcare affordability for these families, particularly if prices rise under the single affordable childcare scheme, as is anticipated. [22334/17]
Amharc ar fhreagraI am pleased to confirm that major improvements in childcare subsidies will come into effect this September, including increases of up to 50% in targeted childcare subsidy rates and a new universal childcare subsidy for children aged between 6 and 36 months. September’s changes will be delivered through existing childcare schemes, pending the introduction of the Affordable Childcare Scheme (ACS), which will come into operation at the earliest possible date.
It is estimated that up to 70,000 children will benefit from childcare subsidies from September, which would more than double the number of beneficiaries of existing schemes. I want to stress that these figures – and also figures on ACS take-up– are estimates. The take-up of childcare subsidies depends not just on eligibility, but on parental demand for childcare and on the availability of childcare places. Given the expected level of parental demand, it was estimated that 79,000 children would benefit from the ACS during its first year of operation. The estimated difference of 9,000 this September is partly accounted for by children aged 3 and older whose family incomes are above the threshold for a GP Visit Card but below the threshold for the ACS. The difference is also partly accounted for by children aged 3 and older whose parents may be eligible for a GP Visit Card – or other eligibility criterion – but have not taken it up.
An information campaign in the coming weeks will aim to minimise low take up through raising awareness among parents about eligibility. In such cases, the families we are talking about generally have incomes near the maximum income-threshold for the ACS, and the subsidy payable under the targeted elements of the ACS would therefore be small. Further, in such cases, when children are aged less than 3, their families will be able to benefit from the universal, non means tested subsidy of up to €80 per month .
We are not anticipating widespread price rises as a result of increased subsidisation of childcare. Of course, prices are entirely at the discretion of childcare providers. However, the scope for price increases will be constrained by the fact that some parents with children aged over 3 will not receive a subsidy. Nevertheless, my Department will keep the matter under active review.
