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Affordable Childcare Scheme

Dáil Éireann Debate, Tuesday - 5 March 2019

Tuesday, 5 March 2019

Ceisteanna (485)

Kathleen Funchion

Ceist:

485. Deputy Kathleen Funchion asked the Minister for Children and Youth Affairs her plans to ensure that community childcare and early years facilities are not left in a disadvantaged position due to the new affordable childcare scheme; and if she will make a statement on the matter. [10710/19]

Amharc ar fhreagra

Freagraí scríofa

Community Childcare settings provide a valuable service to children and families across the country,  including the provision of vital services to vulnerable families in areas of disadvantage.

Over the last four budgets, my Department has increased funding for early learning and care and school age childcare by 117%. A significant proportion of this funding has been targeted at families who use community childcare services, thus assisting with the sustainability issues faced by some services. The Affordable Childcare Scheme will further increase investment in childcare and will reduce the top-up many parents have to pay for their childcare. This will have corresponding benefits especially for community providers. The Affordable Childcare Scheme is also expected to increase demand for services, thereby supporting community services to operate efficiently and at full capacity.

 A core design feature of the Affordable Childcare Scheme is that “money follows the child”. Once a parent has been approved for a subsidy, they should be able to choose any registered childcare provider participating in the scheme, subject to availability, and the subsidy would then be paid directly to that provider. There could be concerns that this could reduce the sustainability of community services by increasing choice of provider. However, the underlying reasons for financial stability problems faced by some community providers does not rest with the nature of the funding model but with a wide range of other factors. Examples of these include the current inability of some parents to pay the level of fees asked of them, the broader range of family supports provided by some services in disadvantaged communities and the particular business models operated by certain services. By creating a clearer, more flexible and more user-friendly scheme, which explicitly links funding to parental income and to the costs of provision, it is intended that the Affordable Childcare Scheme will offer a vehicle for addressing some of these concerns.

For services which are facing financial sustainability, my Department oversees an integrated Case Management system operated by Pobal. This Case Management service provides non-financial assistance or support in the first instance. Financial supports are also available for community services facing certain challenges which may also be accessed through Case Management following a financial assessment.

In addition, my Department is currently undertaking a sustainability review which is examining the financial situation of a range of community childcare services in some of the most disadvantaged areas in Ireland. This review is also taking account of the future introduction of the Affordable Childcare Scheme. The review is expected to be completed in the second quarter of the year and will serve to inform any further sustainability measures or supports which may be required.

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