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

I thank the Senator for raising this important issue. I might just speak broadly about the national childcare scheme before addressing the Senator's specific points.

The national childcare scheme is built on the basis families are supported in accessing early learning and childcare based on need. The manner in which the needs of families are addressed is progressive and ensures that those who have the least income receive the highest hourly subsidies. In this way, we target our resources at those most in need. More than 53,000 children have benefited from the scheme to date. The ratio of targeted to universal beneficiaries on the national childcare scheme is 2.6:1, which is a significant increase on the on the older scheme, the ratio of which was 1.6:1. The national childcare scheme has made the higher targeted subsidies available to a greater number of people.

The scheme is also built to ensure that families are supported to access a minimum level of early learning and childcare provision to support positive child outcomes. Importantly, the evidence also shows that these benefits are, in most cases, realised with part-time participation. On this basis, 20 hours are available all year round for children who have not started school, and in non-term time for school age children, regardless of whether the parents or guardians are at work or in study. During term time, the child's development needs are generally met through school participation. Enhanced hours are available for families where the parents or guardians are in any form of work or study. Where parents or guardians are working for at least two hours per week, or are enrolled on a national framework of qualifications level 1 course or above, this will qualify families for the enhanced hours. Up to 45 subsidised hours per week are available to families who meet this threshold of even very limited participation in work or training. This underpins an approach that is based on strong evidence which demonstrates that growing up in poverty negatively impacts on a child's long-term outcomes. Taking up work or engaging in training, even a very low number of hours, is key to enabling families to break that cycle and that is what national childcare scheme is designed to achieve.

I absolutely understand that there are children in exceptional circumstances for whom this is not enough. For these children, families can avail of up to 45 hours free early learning childcare, with no work or study rule through sponsorship arrangements. The Senator has commented on the sponsorship arrangements. Sponsorship referrals can be made by a number of designated bodies. Already, more than 1,200 children are enjoying the benefits of sponsorship. I must say that I have engaged with Tusla at chief executive level to ensure the organisation is generous in its discretion on awarding sponsorships.

The national childcare scheme has been in operation for 18 months. Of course, that period has coincided with the very difficult Covid crisis. My Department has engaged an external consultant to review the first year of the scheme. I specifically asked for the review to include the usage by socio-economically disadvantaged families and providers serving socio-economically disadvantaged communities. At my request, those two points will be specifically looked at in that review. At the same time, work is ongoing on the provision of a new funding model for the entire childcare sector. We have discussed it previously in this House.

That work is being led by an expert group. It is due to report later this year. It is looking at mechanisms to ensure that the very substantial amount of money the State is putting in right now and the increased amount of money we will put into childcare in the future, is targeted. It has been asked to look specifically at how we can target communities and children of greatest disadvantage. A number of papers have been published on that. I am sure that the Senator is familiar with them already. It is a specific part of what we are trying to achieve in terms of the new funding model. In the interim, my Department continues to support services, particularly those whose sustainability is in question. There is a dedicated sustainability fund with which any service can engage.