Dáil Éireann Debate, Thursday - 30 July 2020
1002. Deputy Kathleen Funchion asked the Minister for Children and Youth Affairs the breakdown of the funding announcement of €300 million on 24 July 2020; and if the funding only covers the employment wage subsidy scheme within the July jobs stimulus between 24 August and 31 December 2020. [20298/20]
Amharc ar fhreagraOn 25 July, I announced a package of measures to support the Early Learning and Care (ELC) and School-Age Childcare (SAC) sector as remaining services reopen in late August and early September. This is a substantial investment of just under €300 million in the period from 24 August to the end of the year. It recognises the importance of the sector for children’s positive development and in terms of supporting the economy to return to normal.
The funding package for the ELC and SAC sector includes three significant elements, listed below, along with an estimate of the cost of each element:
- Continuation of all DCYA ELC and SAC subsidy schemes (NCS, CCSP, TEC) and resumption of the ECCE Programme for the 2020/21 programme year at existing capitation and subsidy rates. This is expected to cost up to €209m for the period 24 August - 31 December.
- Access for registered childcare providers to the Revenue-operated Employment Wage Support Scheme (EWSS). This is expected to cost €84.7m up to December 31.
- A sustainability fund will be accessible to providers (not-for-profit and for-profit) who can demonstrate that the other measures are not sufficient by themselves to enable viable operation of their business. €2m is available in this fund.
A key policy priority of my Department is the sustainability of the sector and this package of measures will support services to re-open and operate in a viable manner despite lower occupancy and extra operating costs. The continued financial support also prevents parents from having to pay higher fees to cover extra COVID-19 related costs.
In addition to this funding package, my Department has introduced, on a temporary basis, added flexibility on attendance rules. This is necessary due to the likelihood of greater variability in patterns of usage by children and families.
This funding package is part of the wider Government effort to reopen the economy. ELC and SAC providers may also be eligible for a range of other supports from Government, including the Credit Guarantee Scheme, the 6-month waiver of commercial rates, the Restart Grant for Enterprises, the early carry-back of trading losses for previously profitable companies, the new income tax relief for self-employed individuals who were profitable in 2019 but as a result of the COVID-19 pandemic incur losses in 2020, and legislation for the previously announced warehousing of tax liabilities.
