Dáil Éireann Debate, Tuesday - 3 October 2017
552. Deputy Bríd Smith asked the Minister for Children and Youth Affairs if the cap for parental contribution will be maintained when TEC schemes are abolished and replaced with a new affordable childcare scheme. [41734/17]
Amharc ar fhreagraI am pleased to assure the Deputy that no recipients of the Training and Employment Childcare, TEC, childcare scheme, including new entrants onto the scheme in 2017-18, will be made worse off as a result of the introduction of the Affordable Childcare Scheme. Under the current programmes, including the TEC schemes to which the Deputy refers, there are many families with low income levels who 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.
In moving from the existing targeted schemes to the new Affordable Childcare Scheme, it is proposed that transitional arrangements should be put in place for current scheme beneficiaries, including TEC beneficiaries. Under these arrangements, beneficiaries would apply for a subsidy under the new scheme but would enjoy a “saver” status for a transitional period, for example until their current training/education course ends in the case of Childcare Education and Training Scheme, CETS, beneficiaries. This would mean that, in circumstances where they do not benefit from moving over to the new scheme (i.e. they no longer qualify for a subsidy or they qualify for a lower level of subsidy), they will still be able to retain their existing level of subsidy for a transitional period.
The proposed base income threshold at the introduction of the Affordable Childcare Scheme will guarantee that the maximum rate of subsidy will be available to all families below the relative income poverty line and will ensure that the majority of current scheme beneficiaries (77%) will receive the maximum subsidy rate under the new scheme. While there will be no cap on prices charged by providers within the Affordable Childcare Scheme, the proposed maximum subsidy rate, which will apply for all those below the base income threshold, will reduce the expected average parental co-payment under the new scheme to below the capped co-payment under CETS, which is the most generous of the current targeted schemes.
Any changes to the base income threshold and maximum subsidy rate for future years, and the consequent impact on the affordability of childcare, will depend on decisions made in the context of the budget available for the scheme at the time.
