Mary Upton (Dublin South Central, Labour)
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Question 228: To ask the Minister for Health and Children her views on the fact that some parents who are employed are no longer able to afford community child care and are removing their children from child care services due to the increase in fees; her further views on the fact that fee increase is creating a poverty trap and if this is counterproductive; and if she will make a statement on the matter. [7646/10]

Barry Andrews (Dún Laoghaire, Fianna Fail)
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I have responsibility for the Community Childcare Subvention Scheme (CCSS) which was introduced in January 2008 and provides support funding to community based not-for-profit child care providers to enable them to charge reduced childcare fees to disadvantaged and low income working parents. I also have responsibility for the free pre-school year in Early Childhood Care and Education (ECCE) scheme which was introduced in January of this year and provides for a free pre-school year for all eligible children prior to commencing primary school. The CCSS is implemented by my office under the National Childcare Investment Programme. A significant level of funding is provided under the CCSS with expenditure of almost €60 million in 2009 in respect of almost 1,000 community childcare services. Parents in receipt of social welfare payments qualify for a reduction of €100 per week for full-time day care while parents in receipt of Family Income Supplement (FIS) qualify for a reduction of €70 per week. Parents who are above the FIS threshold, e.g. who hold a GP visit card or a medical card, qualify for a reduction of €45 per week. In budget 2010, the Minister for Finance announced that the CCSS would be succeeded by a follow-on scheme with effect from September 2010. The new Community Childcare Subvention (CCS) scheme will continue to provide support funding to community based child care services to enable them to charge reduced child care fees and will also include a number of enhancements specifically targeted at working parents in receipt of low incomes. Parents in receipt of FIS will receive an increased subvention at the higher rate of €100. Parents marginally above the FIS threshold will receive an increased subvention rate of €50. My office is also consulting with the Department of Education and Science and the Department of Enterprise, Trade and Employment with a view to including a new capitation rate under the CCS which will improve the current child care supports available to qualifying parents attending VEC and FÁS courses. In addition to the Community Childcare Subvention schemes, the ECCE scheme which came into effect in January of this year will enable parents to avail of a free Pre-School Year for their children in the year before commencing primary school. The scheme is being provided by some 4,000 pre-school services throughout the country and more than 51,000 children are currently enrolled. Full and part-time day care services can participate in the ECCE scheme enabling parents to benefit from a reduction in their weekly child care costs of €48.50.