Alan Farrell (Dublin Fingal, Fine Gael)
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71. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will detail the implementation of schemes to reduce childcare costs by 25%; and if he will make a statement on the matter. [56986/22]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Tá an Teachta Richmond ag dul i gcomharbas ar an Teachta Alan Farrell don cheist seo.

Neale Richmond (Dublin Rathdown, Fine Gael)
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On behalf of Deputy Farrell, I ask the Minister if he will detail the implementation of schemes to reduce childcare costs by 25%, a neat follow-up to what we have just discussed.

Roderic O'Gorman (Dublin West, Green Party)
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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.

Neale Richmond (Dublin Rathdown, Fine Gael)
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The Minister's answer was perfect. I have absolutely no follow-up on the direct answer. However, when I was having a cup of coffee this morning with other parents after the drop-off, the questions were a little more granular. When will they see the impact of the change? What will the dates be? What will it amount to, not necessarily annually? Many of these people are getting by week by week, month by month.

The cost-of-living crisis faces everyone, including those who have children in the early years sector. I would appreciate by way of a supplementary answer if the Minister could perhaps delve into the details of when parents will see more money in their pockets and genuinely feel the impact of what are absolutely groundbreaking changes to the provision and funding of childcare that are long overdue and so welcome. When I meet them for coffee next week, I want to be able to say dollar and cents when they will feel this difference.

Roderic O'Gorman (Dublin West, Green Party)
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That is a fair question. They will feel it in January. That is when the NCS changes will come in. There was some discussion on whether we should phase them in and go from 50 cent to €1 in January and a bit more later on, but the whole thing is coming in from January. That is good for parents in that they will get the immediate benefit of what is on average a cut of 25% from January 2023. It is also good for providers, because when we increase the NCS subsidy, it causes additional work for providers. They have to change the amount they charge to every family on their books and that is complicated. Doing that once means they only have to change it once. It also means that, from January, parents will see that very significant investment.

It is important to say that the difference each parent will receive will be different. I have always spoken about an average 25% cut. Even advocating and communicating this is complicated because parents have different charges and different needs, but on average we are going to see a 25% cut. That is going to be very beneficial to parents.

Neale Richmond (Dublin Rathdown, Fine Gael)
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I think of my own daughter's preschool costs with 12 kids who have completely separate childcare needs. No household looks the same anymore, thankfully, but equally, the outgoings and what they need differ. Not to be negative because that genuinely is not the intention, but I will bring it back to my geographic concern that those of us, like the Minister, who represent Dublin constituencies will not see the material and educational benefit that perhaps will be seen by other constituencies with lower costs to providers and lower costs for parents in simply getting kids to childcare facilities and in the impact of their commute. Is that going to be taken into account? Is there definite outreach? Again, I look at my constituency being behind the national takeup of the overall scheme. How can we offset that to make sure there is relative equity throughout the regions in the provision of this new scheme?

Roderic O'Gorman (Dublin West, Green Party)
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I believe some providers held off. Originally, we had an 89% national takeup. That is now up to 93%. As Deputy Richmond pointed out it was originally 81% in our constituency and now is up to 85%. That is marginal but it is moving in the right direction. This is just year 1 of core funding. Originally for year 1, when budget 2022 was announced, we had €207 million for core funding. Now for year 1, after this year's budget, it is €259 million. Even in the first year we grew the pot. I already have agreement for year 2 for an extra €28 million. One of the things that money is going to be used for is that the three-year qualification rule before a person can get the graduate subsidy will be removed. We are looking to grow the pot and do things to make core funding more attractive. I believe that, as providers see that core funding has delivered successfully and see the commitment of the Government to continue to support services, more services will sign up and we will see those numbers grow both nationally and in Dublin areas.