Dáil Éireann Debate, Thursday - 26 May 2022
282. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of increasing the subsidy under the affordable childcare scheme from €20 to €100 per child per-week. [27071/22]
Amharc ar fhreagra284. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth the estimated additional cost in 2021 of increasing the universal minimum subsidy across the affordable childcare scheme, assuming that the minimum targeted subsidy is increased so as never to be below the universal subsidy, in 50 cent intervals up to an additional €4.50 reaching €5.00, assuming a start-date of September 2022 and the cost for a full year; and the number of children who would benefit. [27073/22]
Amharc ar fhreagraI propose to take Questions Nos. 282 and 284 together.
There are two types of subsidies available under the National Childcare Scheme (or the Affordable Childcare Scheme):
- Currently, universal subsidies are available to all families with children under 3 years old. They are also available to families with children over 3 years who have not yet qualified for the free preschool programme (ECCE). This subsidy is not means tested and provides 50c per hour towards the cost of a registered childcare place for a maximum of 45 hours per week.
- Income Assessed Subsidies are available to families with children aged between 24 weeks and 15 years. This subsidy is means tested and will be calculated based on your individual circumstances. The rate will vary depending on family income, child’s age and educational stage, and the number of children in the family. The maximum available income assessed subsidy dependent on the aforementioned conditions is €5.10 per hour or a maximum weekly subsidy of €229.50.
Budget 2022 announced a number of changes to the NCS which will be rolled out this year. The first change removes the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours, benefiting an estimated 5,000 children from low income families. This came into effect on 2 May 2022. The second change will extend the NCS universal subsidy to all children under 15 from September 2022, benefiting up to 40,000 children. Full year estimates of these changes have been factored into the costs below but the impact of these changes will not be fully known until Q4 2022.
The estimated costs based on the scenarios presented are derived from current levels of usage and expenditure adjusted for the Budget 22 changes. These individual estimates are based on no behavioural change and should be interpreted with caution. It should be noted that changes to subsidies may result in changes to patterns and levels of usage by families. These changes are likely to be more pronounced at higher rates of increase.
Based on the above, the following are the estimated costs and estimated children affected , assuming that the minimum targeted subsidy is increased so as never to be below the universal subsidy:
- 50 cent - €60 million – 37,200 children
- €1 - €102 million – 43,500 children
- €1.50 - €164 million – 50,600 children
- €2 - €212 million (equates to €100 per week at 40 hours per week*)– 58,300 children
- €2.50 - €261 million – 66,700 children
- €3 - €314 million – 76,200 children
- €3.50 - €402 million – 101,700 children
- €4 - €466 million – 116,500 children
- €4.50 - €526 million – 119,300 children
- €5 - €586 million – 119,900 children
*It is assumed that the €20 per week referenced by the Deputy is for an individual using 40 hours universal at .50 per hour. As such, a €100 value for the same individual would be 40 hours at €2.50, thereby increasing the hourly universal subsidy by €2
