Dáil Éireann Debate, Tuesday - 31 May 2022
511. Deputy John Lahart asked the Minister for Children, Equality, Disability, Integration and Youth the way that the national childcare scheme addresses affordability for parents; the percentage reduction in costs that the scheme will yield for parents in 2022 and over the next three years; and if he will make a statement on the matter. [27903/22]
Amharc ar fhreagraSignificant investment is being made by my Department to address affordability for parents through the National Childcare Scheme (NCS). As the Deputy may be aware, I announced a number of changes to the Scheme as part of Budget 2022. These changes will be of significant benefit to many parents.
For instance, from 2 May, the NCS no longer deducts hours spent in pre-school, or school, from NCS awards. This means that parents may use their full awarded subsidised NCS hours – benefitting an estimated 5,000 children from low income families.
In September 2022, the NCS Universal subsidy will be extended to all children under 15 years of age. This is worth 50 cents per hour, or over €1,100 per annum for children in full time early learning and care. The extension of the universal subsidy will benefit up to 40,000 children.
Both of these changes will result in more parents getting additional subsidised hours for early learning and childcare in Tusla registered services.
Total funding under the NCS in 2022 is estimated to be €200 million. The NCS is demand lead so the total level of subsidy is dependent on the number of applications from parents, and the level of subsidy they are awarded.
Funding for the NCS will increase over the coming three years, to improve the affordability of childcare for parents. The amounts of NCS funding for each year will be set in the relevant Budgets.
In addition to these improvements to the NCS, a core funding stream is being introduced in September 2022. The intention of this funding is to support providers to cover increased operating costs linked to quality improvement measures. A condition of this funding is that providers will not increase parents’ fees for early learning and childcare from September 2021 levels. This will ensure that parents can fully benefit from NCS subsidies. Furthermore, to participate in core funding, providers will be required to offer the NCS and/or the ECCE programme to all eligible children/parents. This will ensure that more families can access NCS subsidies.
Finally, it is not possible to calculate a percentage reduction in costs that the scheme will yield for parents over the next three years, as subsidies awarded under the NCS will vary depending on the application type chosen, and a family’s individual circumstances.
Subsidies under the NCS are awarded as an hourly rate, along with a maximum number of hours for which that rate is payable. The rate a family receives will vary depending on their level of family income, child’s age and educational status, and the number of children in the family. Early learning and childcare providers set their own fees, and that the amount of childcare required will vary depending on individual family needs.
