Roderic O'Gorman (Dublin West, Green Party) | Oireachtas source

It is indeed a good follow-up. In budget 2023, I introduced major reforms to the national childcare scheme, NCS, which will substantially improve the affordability of early learning and childcare for families. I secured additional funding of €121 million to be allocated to the NCS from 1 January of next year in order that all families accessing registered early learning and childcare will receive a minimum hourly subsidy of €1.40 off the cost of early learning and childcare. The increase in the minimum hourly subsidy from 50 cent to €1.40 aims to reduce the average co-payment paid by families to providers by 25%. This means up to €3,276 off the annual cost per child. Prior to the change being brought in, up to €1,170 was met by the State. With the changes being brought in, up to an additional €2,106 per annum will be taken off the cost of childcare for each child. The exact reduction in costs will be unique to each family. It will depend on their personal circumstances and their early learning and childcare needs. From 2 January 2023, any family who is not already at the maximum hourly subsidy under the NCS will see an increase in the level of subsidy they get. The largest increase will be seen by those on a reckonable income of €60,000 and above. All families with reckonable income of €26,000 and above will see some level of increase. Families with reckonable income of €26,000 and below are already on the highest level of subsidy under the scheme.

The fee freeze in place in more than 93% of services availing of core funding gives families greater certainty as to what they will be charged and ensures these increases in the NCS subsidies will not be absorbed by fee increases.

Through a combination of these measures, I am working to ensure high-quality early learning and childcare is accessible and affordable to all, regardless of means. I know many providers have raised issues with the complexity of the NCS. We have brought together a user subgroup of the early learning and childcare stakeholder forum to start going through some of those issues whereby childcare providers themselves have access to officials in my Department and Pobal so we can start trying to clarify some of those technical issues.

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