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

Let me address the issue of the national childcare scheme, on which the Deputy focused. When introduced, the scheme will represent a major landmark for all children and families, especially lower income families and lone parents. It will be accessible to all families, not just those working or studying full time. The new scheme will replace the existing targeted childcare schemes with a single, streamlined and user-friendly one. It entails a fundamental shift away from subsidies grounded in medical card and social protection entitlements towards a comprehensive and progressive system of universal and income-based subsidies. By making this shift and tangibly reducing the cost of quality childcare for thousands of families across Ireland, the scheme intends to improve children's outcomes, support their lifelong learning, make work pay and reduce child poverty. It is also designed to have a positive impact on gender equality in terms of labour market participation.

Under the current targeted schemes, many families with low income levels are able to access subsidised childcare because they are either in low-paid employment or are rotating between short periods of employment, unemployment and training. The national childcare scheme will change this. In terms of the income-based subsidies awarded under the scheme, parents who are working or studying or who meet certain other conditions will qualify for an enhanced hours subsidy up to a maximum of 40 hours per week. The definitions of "work" and "study" will be set out in regulations made under the Childcare Support Act 2018 and will be comprehensive, covering differing types of work and study arrangements, such as part-time, week on-week off, and zero-hour contract arrangements. The legislation will also provide for so-called bridging periods when a parent is moving between work and study. Where a parent is not engaging in work or study, the child will still be eligible for the standard hours subsidy of 15 hours per week. These 15 hours will wrap around school and preschool provisions. This means that, when the child is in school or preschool, no subsidy will be payable during term time.

This approach reflects the policy objectives of encouraging labour market activation and reducing child poverty and persistent poverty traps. It is consistent not only with the evidence of the strong benefits of early learning and care for young children, particularly those from disadvantaged backgrounds, but with the evidence that these benefits are in most cases realised with part-time participation. For older children, it recognises that, during term time, child development needs will be met through school and preschool while still providing part-time early learning and care and school-age childcare outside of those times.

I emphasise that families with high levels of need who require childcare for child welfare, child protection or family support reasons may be referred for childcare support by a specified so-called sponsor body.

If such a referral is made, the family will automatically qualify for a subsidy for the number of hours considered appropriate by the sponsor without having to satisfy the scheme's eligibility, income or enhanced hours requirements. I hear the significant issues the Deputy is raising and I share his concerns. This is the reason I commissioned an independent sustainability review last year. I think the Deputy referred to the review, which analyses a number of services in highly disadvantaged communities to explore any potential financial sustainability issues and the potential impact of the work-study rules within the national childcare scheme. I expect to receive that analysis, which will inform any necessary refinements of the national childcare scheme, shortly. In the interim, arrangements are in place to ensure no one loses out.

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