Dáil debates

Tuesday, 26 February 2008

Adjournment Debate

Child Care Funding.

8:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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I thank you, a Leas-Cheann Comhairle, for allowing me to raise this matter. This issue came to light when Limerick youth services contacted me a short time ago. Since June 2006 more than 14 lone parents involved in FÁS-funded community training schemes, including leaving certificate applied and FETAC programmes, have left these two-year courses which are designed to enable participants to assimilate into the workforce. Under this scheme, up to June 2006, a child care allowance was provided for the full duration of the course. In early 2006 the Department of Enterprise, Trade and Employment instructed FÁS to carry out a review of the scheme and further instructed it to reduce the period of payment for the child care allowance to 52 weeks. It is ludicrous that FÁS community training schemes must be for a period of two years but those taking them cannot continue, as they only receive the child care allowance for 52 weeks. To make matters more ludicrous, a person who began the course in May 2006 will receive the payment for 104 weeks but someone who began in July 2006 only received it for 52 weeks.

There are approximately 119 people undertaking the leaving certificate applied and FETAC programmes which come under Limerick youth services which do fantastic work. Since June 2006 14 people have left the programme, while another three are hanging on by their fingertips and have family members and friends minding their children in an effort to stay on the programme. There is no consistency of care for their children and they find it is impossible to continue on the course.

The Minister must as a matter of urgency reverse the decision made in 2006. It was not made as part of any budget measure. It was done by stealth by the Department without full public knowledge of what was happening. The allowance is €63.50 per child attending day care and €37.50 per child attending part-time day care because the child is attending primary school. As a matter of urgency the Minister must reinstate the child care allowance for these FÁS-funded community training schemes, including leaving certificate applied and FETAC programmes, in order that the allowance is paid for the duration of the course — two years — rather than imposing a penal 52-week cap. The purpose of the training schemes is to encourage people to enter the workforce. In one way, they are being encouraged to take a course but in another the Government is pulling the rug from under them by reducing the duration of the allowance from 104 weeks to 52. I want this decision reversed and await the Minister of State's comments.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I understand FÁS provides support for the child care costs of persons who wish to undertake FÁS vocational training programmes. The rates paid are a contribution towards the costs of child care and payment is made on the basis of the child care costs incurred by the person as a result of attending the FÁS training programme.

The following categories are eligible for payment of the child care allowance: unemployed persons, those returning to work, early school leavers, refugees, members of the Traveller community, people with disabilities and lone parents. The contribution is to be paid to those in the above categories who have been unemployed, unoccupied or working in the home for at least six months prior to commencing the FÁS training programmes. A primary carer of a child or children who needs child care in order to take up a training opportunity with FÁS is also eligible for the allowance. A primary carer is "a person who is not employed outside the home, not attending an educational or training course or not engaged in community or voluntary work for more than 15 hours per week". Workers who have been made redundant may also receive the child care contribution on commencing a FÁS training course.

Eligible training is restricted to specific training schemes, namely, bridging training programmes, specific skills training, traineeships, community training, return to work programmes, community training workshops and linked work experience. Eligible children include children up to five years of age who have not started school and children attending primary school up to 13 years of age and who are in after-school care, with the allowance applying for the hours the recipient is on the FÁS training programme. No payment will be made for the hours the child is at school. However, if a child is still attending primary school after the age of 13 years and a trainee provides documentation to support this claim, the trainee can continue to receive the child care allowance.

In 2001, having received approval to proceed with the payment of child care support for trainees, FÁS was directed to make the payment to the providers of child care rather than the trainees individually. This requirement was based on the principle that the FÁS scheme should be as similar to that already in place within the Department of Education and Science. FÁS reviewed the effectiveness of the child care payment in terms of the progression of trainees in 2003 and at the same time reviewed the internal procedural aspects of the payment. A fundamental recommendation by FÁS staff and management from this review was that payments should be made directly to the trainee in place of it being made to providers of child care. In June 2004 the Department of Finance and the Department of Enterprise, Trade and Employment responded that they were willing to consider payment directly to the trainee if FÁS tightened the payment procedure further and if any new arrangements or schemes had a sufficiently tight auditing system to prevent exploitation. To this aim, the maximum number of weeks for which FÁS will contribute to child care payments has been capped at 52 weeks.

My Department is willing to examine the situation regarding the 52-week cap with provisos on the need to consider the numbers and costs involved, and the impact of certain issues, including the potential ripple effect in terms of monetary and other impacts. In order to progress this, FÁS is gathering the following information: the number potentially affected by the cap; the names of specific programmes or target groups, for example, specialist training providers and community training centres, and also the duration of relevant programmes; the additional costs if the cap was extended — a pro rata formula based on numbers could be applied; the potential impact this would have, for example, if FÁS extends this for particular groups, whether other groups would also be entitled to the same, or, if FÁS extended it to other groups, whether it would have budgetary implications; and any other issues or concerns.

I understand that once this information is to hand, FÁS will present it to my Department outlining the historic context and the reasons for this condition to be reconsidered. There is an undertaking by the Department to review the matter.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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We should have as speedy a resolution as possible.