Income thresholds are monitored on an ongoing basis relative to income information from the Central Statistics Office and considering measures of relative income poverty thresholds. The National Childcare Scheme is designed to implement various adjustments reflecting the policy decisions and priorities of Government. Such adjustments may be to subsidies or income thresholds amongst other things
Budget 2023 introduced enhancements to NCS subsidies which will come into effect on 2 January 2023. From this date, all families accessing registered early learning and childcare will receive an NCS subsidy of at least €1.40.
There are two types of subsidies available to parents:
- Universal subsidies are available to all families with children between 24 weeks and 15 years of age. This subsidy is not means tested and currently provides 50c per hour towards the cost of a registered childcare place for a maximum of 45 hours per week. This will rise to €1.40 per hour from 2 January 2023.
- Alternatively, 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 the applicant’s individual circumstances. The rate will vary depending on the level of family income, the child’s age and educational stage, and the number of children in a family. It can be used towards the cost of a Tusla registered childcare place for up to a maximum of 45 hours per week. To apply for an Income Assessed subsidy, the applicant’s reckonable family income has to be less than €60,000.
The current subsidy rates are:
|
Reckonable income
|
€26,000 or below
|
€26,000 – €60,000
|
Over €60,000
|
|
24-52 weeks old
|
€5.10
|
€5.10 - €0.50
|
€0.50
|
|
1 to 2 years old
|
€4.35
|
€4.35 - €0.50
|
€0.50
|
|
3 years old or older
|
€3.95
|
€3.95- €0.50
|
€0.50
|
|
At school (or older than 6 and less than 15)
|
€3.75
|
€3.75- €0.50
|
€0.50
|
From January 2nd 2023 the subsidy rates will be:
|
Reckonable income
|
€26,000 or below
|
€26,000 – €60,000
|
Over €60,000
|
|
24-52 weeks old
|
€5.10
|
€5.10 - €1.40
|
€1.40
|
|
1 to 2 years old
|
€4.35
|
€4.35 - €1.40
|
€1.40
|
|
3 years old or older
|
€3.95
|
€3.95- €1.40
|
€1.40
|
|
At school (or older than 6 and less than 15)
|
€3.75
|
€3.75- €1.40
|
€1.40
|
For income-assessed awards, the highest levels of subsidy will go to families at or below the minimum reckonable income threshold of €26,000, with the level of subsidy tapering down to the minimum subsidy rate as income rises towards the maximum net income threshold of €60,000. The extension of eligibility for the universal subsidy to all children under 15 coupled with the increase to €1.40 will mean the taper rate for those with a net income of €60,000 and above will be further reduced. This is because this group will see the highest reduction in weekly childcare costs as a result of the increase. These changes avoid a step effect for those whose incomes fall just outside the eligibility for income assessed subsidies.
Under the NCS, “Reckonable income” refers to the income that will be assessed when an application is made. It comprises of family income, including Department of Social Protection (DSP) payments, after tax, PRSI, USC, and any allowable items under the Scheme have been deducted. A full list of income deductions and exclusions is available on www.ncs.gov.ie/faqs.
"Allowable deductions" to income assessment are permitted and a list of these are provided in Schedule 1 of the Childcare Support Act 2018. Broadly it includes income tax, pension deductions, and certain grants for education and labour activation.
