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

I thank the Senator and I hear the issues she is putting forward. I am going to answer the question as she put it to us last evening.

The national childcare scheme, when introduced, will represent a major landmark for all children and families in Ireland, especially for lower-income families and lone parents. It can be accessed by all families and not only those working or studying full-time. The new scheme will replace the existing targeted childcare schemes with a single streamlined and user-friendly scheme.

The scheme 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 by tangibly reducing the cost of quality childcare for thousands of families across Ireland, the scheme aims to improve outcomes for children, support lifelong learning, make work pay and reduce child poverty. It is also designed to have a positive impact on gender equality in labour market participation and employment opportunities.

Under the current targeted schemes many families with low income levels are not currently able to access subsidised childcare, either because they are in low-paid employment or because they are rotating between short periods of employment, unemployment and training. The national childcare scheme will change this. The universal subsidy will be available to all families with children under three years of age, as well as those with children over the age of three years who have not yet qualified for the free preschool programme. The universal subsidy provides 50 cent per hour towards the cost of a registered childcare place for up to a maximum of 40 hours per week. It is not means tested. With regard to income-based subsidies awarded under the scheme, parents who are working, 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. They will be comprehensive and cover differing types of work and study arrangements, such as part-time work, week-on, week-off work and zero-hour contract arrangements. The legislation will also provide for 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 policy objectives of encouraging labour market activation and reducing child poverty and persistent poverty traps. It is consistent with the evidence of the strong benefits of early leaning and care for young children, particularly those from disadvantaged backgrounds, as well as evidence that these benefits are, in most cases, realised with part-time participation.

For older children, the approach 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. Arrangements will be in place to ensure that no one loses out in the initial transition to the new scheme. Families will be able to continue to access their current targeted supports until August 2020.

The new national childcare scheme has been designed to be flexible with income thresholds, maximum hours and subsidy rates that can be adjusted in line with Government decisions and as more investment becomes available. As such, any adjustments deemed necessary by Government can be carried out in a quick and responsive manner.