Katherine Zappone (Dublin South West, Independent) | Oireachtas source

The new scheme which I announced recently is highly progressive overall. It will encompass both universal and targeted elements which can be incrementally expanded over time. International evidence indicates that systems based on universalism are associated with lower rates of child poverty and deliver better outcomes for all children, with disadvantaged children benefiting more when services are provided within a universal programme design. Progressive universalism further recognises the importance of the provision of additional support for those with the greatest need.

Eligibility for the targeted aspect of the new scheme is based on net parental income and the highest levels of support will be offered to those on the lowest incomes. It is fairer and more accessible than the current targeted subsidy programmes, under which many low income families are not currently able to access subsidised child care because of the requirement to be in receipt of certain State benefits or attending certain training programmes. It will also enhance targeted schemes.

For example, a person in receipt of the maximum level of subsidy under the current community child care scheme, which is by far the largest of the current targeted schemes, might face a weekly co-payment of €89 per week. Under the new scheme, a person in receipt of the maximum rate of subsidy will have an average weekly co-payment of about €12 per week.

The universal subsidy for children under three recognises that the cost of child care is generally highest when children are under three years of age and this cost can result in many parents having to stop work outside the home when paid maternity leave ends. Recent reports also suggest that cost and sustainability issues are affecting the availability of child care places for children under three years.

Finally, the Deputy has also asked about families above the income cut-off for targeted subsidies. While all targeted schemes, by their nature, have thresholds and cut-off points, the new affordable child care scheme is designed to be flexible, with the ability to adjust income thresholds, subsidy rates and income taper rates over time and as further Government investment becomes available.

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