Written answers

Wednesday, 14 December 2016

Department of Children and Youth Affairs

Childcare Education and Training Support Programme

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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34. To ask the Minister for Children and Youth Affairs if those persons availing of CET childcare will not face any increased costs in the years ahead. [40176/16]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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41. To ask the Minister for Children and Youth Affairs if persons availing of CET childcare, in particular new entrants onto the scheme, will not pay any extra for childcare in 2017 and in 2018 than they did in 2016; and if she will make a statement on the matter. [40174/16]

Photo of Katherine ZapponeKatherine Zappone (Dublin South West, Independent)
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I propose to take Questions Nos. 34 and 41 together.

I am pleased to assure the Deputies that no recipients of the CETS childcare scheme, including new entrants onto the scheme in 2016-2017, will be worse off as a result of the introduction of the Affordable Childcare Scheme. Under the current programmes, including CETS, there are many families with low income-levels who are not able to access subsidised childcare because of the requirement to be in receipt of certain state benefits or attending certain training programmes.

In moving to the new Affordable Childcare Scheme, we will have transitional arrangements in place for current scheme beneficiaries, including CETS beneficiaries. They will enjoy a “saver” status for one year, or until their current training/education course ends in the case of CETS beneficiaries. This will mean that, if they do not benefit from moving over to the new scheme they will still be able to retain their existing level of subsidy for one further year/registration period. However, I must emphasise that the Affordable Childcare Scheme has been designed in such a way that it will make childcare more affordable and accessible for parents overall, including for 95% of those who are currently benefitting from the existing schemes. For example, under the CETS scheme, which is the most generous of the current TEC programmes, the maximum parental contribution of €25 per week equates to €0.62 per hour. By contrast, under the new scheme, those getting the maximum rate of subsidy might be expected to face a lower average parental contribution of €0.30 per hour or €12 per week for full-time childcare (i.e. 40 hours). As a result, the large majority of those who would otherwise have been part of the CETS scheme are expected to see their childcare costs fall.

Any changes to the base income threshold and maximum subsidy rate for future years, and the consequent impact on the affordability of childcare, will depend on decisions made in the context of the budget available for the scheme at the time.

Finally, my officials recently met with representatives of SPARK in relation to the impact of the Affordable Childcare Scheme on one-parent families. A specific concern was raised by SPARK in relation to the impact of the Affordable Childcare Scheme on recipients of the Jobseeker’s Transitional payment who may be required to participate in training courses as a condition of their welfare payment, but who can only afford to participate in those training courses because their childcare costs are subsidised and capped by the CETS scheme. SPARK argue that the move to the Affordable Childcare Scheme could, if childcare fees rise, result in childcare costs becoming unaffordable for those parents, who might as a result risk losing their entitlement to the Jobseeker’s Transitional payment. My officials have agreed to discuss this issue further with both the Department of Social Protection and SPARK, to ensure that the Affordable Childcare Scheme has its intended effect of making childcare more affordable and more accessible, especially for low-income families.

I share both Deputies' concerns that no one should become worse off as a result of the important changes I am proposing. I accept that it would be entirely counter-productive if a change designed to improve the affordability of childcare for some of our lowest income groups had the effect of leaving some people worse off. I will work very closely with my officials as the exact details of the new system are worked out, to ensure that this is not the case.

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