Dáil Éireann Debate, Tuesday - 28 July 2020
726. Deputy Thomas Pringle asked the Minister for Children and Youth Affairs the estimated cost of increasing the subsidy under the affordable childcare scheme from €20 to €50 per child per week in 2021; and if he will make a statement on the matter. [18626/20]
Amharc ar fhreagraThe estimated additional cost of this measure would be €26m.
The National Childcare Scheme subsidy payments are paid weekly and are calculated by taking the hourly subsidy awarded to a child and multiplying it by the number of hours they attend a service or the maximum number of hours awarded to them per week (whichever is fewer).
The National Childcare Scheme's existing universal element allows all children aged under three years, or over three and not yet qualified for the ECCE scheme, a minimum subsidy of €.50 per hour for the maximum number of hours allowed under the scheme.
To implement a universal subsidy of up to €50 for all children the following steps would be required:
- Increase the universal subsidy to €1.11 per hour (€1.11 per hour, multiplied by 45 hours per week which is the maximum hours subsidised under the NCS from 7 September, 2020)
The scheme’s cost model is based on key assumptions around the preferences and behaviours of parents relating to working hours and childcare choice, rates of growth in demand, and certain metrics . As such, all estimates remain heavily caveated. It is particularly difficult to estimate the behavioural changes that will result from significant increases in the level of subsidy available.
|
Increasing the weekly Universal Subsidy to €50 |
Increase |
|
2021 cost |
€26m |
