Gino Kenny (Dublin Mid West, People Before Profit Alliance)
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34. To ask the Minister for Children and Youth Affairs if the new child care scheme is to assist the most disadvantaged in society; the way it is justified that those on TEC schemes will be worse off with the child care subvention scheme, considering that those parents are the poorest in society; and if she will make a statement on the matter. [33544/16]

Katherine Zappone (Dublin South West, Independent)
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I am pleased to assure the Deputy that no recipients will be made worse off as a result of the improvements I am introducing. Under the current programmes, including the TEC programme to which the Deputy refers, there are many families with low income-levels who are not currently able to access subsidised childcare because of the requirement to be in receipt of certain state benefits or attending certain training programmes.

The benefits of moving to an income-basis for eligibility under the new scheme include:

- Clarity, with a move away from a complex array of eligibility criteria to a single, clear basis.

- Reduction of welfare traps and increased support for progression into employment and retention in employment.

- Equity, in ensuring that low-income working families are not excluded from benefitting from subsidised childcare.

It is anticipated that the vast majority of people (95%) who avail of the current targeted childcare schemes will benefit from the change to the new Affordable Childcare Scheme. For example, under the most generous of the current TEC programmes, the maximum parental contribution of €25 per week equates to €0.62 per hour. By contrast, under the new scheme, those getting the maximum rate of subsidy might be expected to face a lower average parental contribution of €0.30 per hour. It is estimated that 77% of the current scheme beneficiaries will get the maximum rate of subsidy under the new scheme. Furthermore, 'saver provisions' will mean that nobody will be made worse off in the immediate transition to the new scheme, i.e people will either gain or have their subsidy protected for a transitional period.

In 2017, the number of children benefiting from the new Affordable Childcare scheme is estimated at 79,000. This includes 25,000 children who will benefit from the universal subsidy. An estimated 54,000 children will benefit from the targeted subsidies, including 31,500 children who already receive support under the current targeted schemes and 22,500 new beneficiaries.

Gino Kenny (Dublin Mid West, People Before Profit Alliance)
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35. To ask the Minister for Children and Youth Affairs her views on whether €12 million is substantial enough to support persons on the lowest threshold or income; if the support to be provided is realistic enough to the needs of low income workers; and if she will make a statement on the matter. [33543/16]

Katherine Zappone (Dublin South West, Independent)
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I am satisfied that the new scheme is properly funded to support people on the lowest incomes. Budget 2017 provided an additional €19m to enable the introduction of a new single Affordable Childcare Scheme from September 2017. This is in addition to the existing funding which supports the current targeted schemes and which equates to €87m annually. The full year cost of the scheme will be approximately €150m.

From September 2017, the new Affordable Childcare Scheme will:

- replace the existing targeted subsidisation schemes with a new streamlined and simplified scheme which is more accessible for both parents and providers,

- provide a fair and consistent scheme of progressive financial support towards the cost of childcare, with a particular initial focus on lower income families but also incorporating universal supports, and

- provide a robust and flexible platform for future investment in childcare in Ireland.

Budget 2017 provided an additional €19m to enable the introduction of a new single Affordable Childcare Scheme from September 2017. However, this is in addition to the existing funding which supports the current targeted schemes and which equates to €87m annually. The full year cost of the scheme will be approximately €150m.

The new scheme will make childcare more affordable, and will enable both universal and targeted subsidies for parents towards their childcare costs. In 2017, the number of children benefiting from the new Affordable Childcare scheme is estimated at 79,000. This includes 25,000 children who will benefit from the universal subsidy. An estimated 54,000 children will benefit from the targeted subsidies, including 31,500 children who already receive support under the current targeted schemes and 22,500 new beneficiaries.

Under the targeted element of the scheme, the maximum income threshold ensures that all families within the bottom 5 income deciles should receive some level of support. However, the scheme also provides a flexible platform for future investment, allowing income thresholds and subsidy rates to be adjusted over time so as to expand support to more families.