Anne Rabbitte (Galway East, Fianna Fail)
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56. To ask the Minister for Children and Youth Affairs her views on the fact that the single affordable child care scheme will not take rent or mortgage payments into consideration when calculating parents' level of subsidisation; and if she will make a statement on the matter. [6752/17]

Katherine Zappone (Dublin South West, Independent)
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I have given considerable thought to the question of taking rent or mortgage payments into account when calculating the subsidy under the new scheme. In doing so, I was conscious that excluding housing costs is fairer for families with the same income but different housing choices.

Allowing the deductibility of housing costs would, in effect, mean that the Affordable Childcare Scheme would part-subsidise families’ housing choices. For example, we may consider two families that have the same income level, but one family has chosen to live in a larger or more expensive house. If housing costs were deductible from the income-assessment for the Affordable Childcare Scheme, then the family that chose to live in a larger house would receive a larger childcare subsidy, and would do so solely because of how that family had chosen to spend its income. The Affordable Childcare Scheme would thus provide additional financial support to families who choose larger or more expensive housing options. If we were to allow for the deduction of housing costs, this allowance would generally benefit higher-income earners more, which would run counter to the intention of the Scheme to target supports primarily at those with the lowest incomes.

Eligibility for the Affordable Childcare Scheme (ACS) is based on net parental income, and the highest levels of support will be offered to those on the lowest incomes. ACS is fairer and more accessible than the current targeted childcare programmes, under which many low-income families are not currently able to access subsidised childcare because of the requirement to be in receipt of certain State benefits or attending certain training programmes. ACS will also enhance affordability, offering greater levels of support overall to low income families than the current targeted childcare programmes. For example, parents on the lowest incomes, who previously received a subsidy of €95 per week, may now receive a subsidy of between €150 and €205 per week, depending on the age of the child. The amount payable by a parent in such a case will – in an average childcare service – fall from €72 per week at present to between €0 and €17 per week under ACS, again depending on the age of the child.

While I acknowledge the financial burden of housing costs for many families with children, ACS aims to target subsidies on the basis of an equitable assessment of the total income coming into a family. Housing costs are not considered. As I have already outlined, this approach to assessing means is very much in line with most means-assessment Government schemes currently in operation.

I believe that this is the right way forward. We will no doubt debate this and many other matters when the House considers the forthcoming legislation on the Affordable Childcare Scheme.