Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 374: To ask the Minister for Health and Children the annual cost of the universal early child care supplement. [30653/08]

Barry Andrews (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The Early Childcare Supplement (ECS) was introduced for all children less than 6 years of age in April 2006. The ECS, which is a direct, universal, non-taxable payment, was increased from €1,000 to €1,100 in 2008. The payment is disbursed on behalf of the OMC by the Department of Social and Family Affairs on a quarterly basis.

Total ECS expenditure for the three quarters of 2006 for which it was operational was €292.42m. Expenditure for 2007 was €417.65m. A provision of €506m was made for the ECS in the 2008 Revised Estimates.

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 375: To ask the Minister for Health and Children if calculations have been undertaken to establish the annual pay out of early child care supplement if it was only granted to families with incomes of less than €100,000 per annum. [30655/08]

Barry Andrews (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

As the Deputy is aware, the Early Childcare Supplement (ECS) was introduced in April 2006. The ECS, which is payable in respect of all children under 6 years of age, is a direct, universal, non-taxable payment. The payment was increased from €1,000 to €1,100 in 2008. The payment is disbursed on behalf of the Office of the Minister for Children by the Department of Social and Family Affairs on a quarterly basis. A provision of €506m was made for the ECS in the 2008 Revised Estimates.

No definite estimate is available of the cost of the ECS payment if it was confined to families earning less than €100,000 per annum. However, according to the Revenue Commissioners, it is estimated that approximately 86% of all tax units with children (regardless of the age of the child) earned less than €100,000 per annum in 2007. Assuming that this is representative of all current recipients of the ECS, the cost of the payment in 2008 would be in the region of €435m.