Dáil Éireann Debate, Thursday - 11 May 2017
261. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs if she has conducted an economic analysis on the potential impact of the single affordable child care scheme on child care prices; and if she will make a statement on the matter. [22427/17]
Amharc ar fhreagraThe policy paper on the Affordable Childcare Scheme (ACS), which the Government approved last October included a preliminary economic analysis of childcare provision in Ireland. The policy paper examined the option of imposing price-caps on childcare providers to prevent erosion of subsidies through fee-inflation. The policy paper noted the potential benefits of price-caps, including preventing fee-inflation and providing certainty for parents, and equity between parents. It did however note the problems that might arise. Introduction of price-caps would represent economic regulation of the market, raising legal questions as well as economic questions as to what constitutes a fair price for childcare.
The policy paper recommended that there should be no initial price-cap, but that the option of price-caps should be considered following the Independent Review of Costs and examination of the initial market response to higher subsidies. The Independent Review, which will be commissioned later this year, will include examination of variation in costs and fees. It will be a key input into any future consideration of the potential benefits and risks of introducing price-caps.
