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Affordable Childcare Scheme Eligibility

Dáil Éireann Debate, Thursday - 19 April 2018

Thursday, 19 April 2018

Ceisteanna (323)

Anne Rabbitte

Ceist:

323. Deputy Anne Rabbitte asked the Minister for Children and Youth Affairs the method used to determine the level of subsidy that a household is eligible for under the affordable childcare scheme. [17202/18]

Amharc ar fhreagra

Freagraí scríofa

Under the Affordable Childcare Scheme, a family will be able to benefit from either a universal or a targeted subsidy. The level of subsidy will depend on the age of the child and, in the case of targeted subsidies, family income and parents' participation in work or study.

Universal subsidies will be available for families whose children are between 6 months and 36 months old (or who are not yet eligible to participate in the ECCE scheme, if later). The subsidy will amount to €0.50 per hour, and will be available for up to 40 hours per week.

Targeted subsidies will be available for families with net incomes below €47,500 whose children are between 6 months and 15 years old and who are availing of registered childcare. The main determinant of the level of subsidy will be net family income. Net family income will be determined on the basis of the combined income of the applicant and the applicant's partner, and the scheme will allow for the deduction from gross income of income tax, PRSI, USC, pension contributions, maintenance payments made, and a number of social welfare and related payments in line with planned legislation, namely the Childcare Support Bill 2017 and regulations to be made thereunder. The highest levels of subsidy will go to families with the lowest incomes, with the level of subsidy tapering down smoothly as income rises towards the maximum net income threshold of €47,500.

The level of subsidy will also depend on the age of the child. Higher subsidies will be awarded to families with younger children, to reflect the higher cost of providing childcare for younger children as a result of the higher adult-child ratios required by the Early Years Regulations.

In addition, the level of subsidy will reflect parents' participation in work or study. For families in which both parents (or the parent in a one-parent family) are in work or studying, enhanced hours of up to 40 hours of subsidy per week will be available. For families in which one or both parents is not working or studying, standard hours of up to 15 hours per week may be awarded.

Recent amendments to the Childcare Support Bill 2017, which is still progressing through the Houses of the Oireachtas, have extended the range of circumstances that must be considered in determining the rules on the number of hours of subsidy to be awarded each week. These circumstances have been extended to include specified situations in which a parent is unavailable to care for the child (e.g. because a parent is in hospital long-term), and temporary changes of circumstances in a parent's work or study (e.g. to allow bridging periods between phases of work or study).

The hours of subsidy awarded will also depend on whether a child is taking part in ECCE or is at school, as the hours of subsidy under the Affordable Childcare Scheme are intended to wrap around a child's participation in ECCE or school, as well as meeting childcare needs outside of term-time.

ACS will be fairer and more accessible than the current targeted childcare programmes, under which many low-income families 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.

A further benefit of the method for determining the level of subsidy under the Affordable Childcare Scheme will be its flexibility, as the Scheme will allow for adjustment of income thresholds, subsidy rates and income taper rates over time and as further Government investment becomes available.

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