Jan O'Sullivan (Limerick City, Labour)
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266. To ask the Minister for Children and Youth Affairs the number of families that will be eligible under the community subvention scheme in September 2017; the number of families that will not be eligible but would have been eligible under the affordable child care scheme if implemented according to details published in October 2016; the rates which will be in effect in September 2017 for bands (details supplied), in tabular form; and if she will make a statement on the matter. [21203/17]

Katherine Zappone (Dublin South West, Independent)
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The take-up of childcare subsidies depends not just on eligibility, but on parental demand for childcare, and on the availability of childcare places in local childcare facilities that are taking part in the relevant subsidy scheme.

My Department has recently made significant efforts to increase the number of childcare facilities taking part in subsidy schemes and the number of subsidised places, particularly through opening up the Community Childcare Subvention (CCS) to private providers in 2016 and – earlier this year – through making it easier to register children under the scheme throughout the year. These efforts will continue in the coming months through a communications initiative with parents and providers. In addition, the availability for the first time of a universal band within CCS from September is expected to incentivise more private providers to sign contracts to participate in the scheme.

With regard to the level of parental demand for childcare, there is considerably uncertainty about the level of take-up of subsidised places, given the high level of change to subsidy rates from this September. Increases in subsidies are expected to lead an increase in demand, but this increase may take time to fully materialise as the speed of change in demand depends, for example, on the speed with which parents for whom childcare is now affordable – as a result of higher levels of subsidy – are able to obtain work.

Differences between the expected take-up of CCS and TEC subsidies this September and the expected initial take-up in the first year of the Affordable Childcare Scheme partly reflect differences between the schemes in eligibility rules. Eligibility for CCS and TEC depends on receipt of a range of social welfare payments, possession of a Medical Card or GP Visit Card, or participation in one of a range of education or training courses, or labour market activation schemes. Eligibility for targeted elements of the Affordable Childcare Scheme, in contrast, will depend on a family’s income-level. While the income thresholds for the Affordable Childcare Scheme and the planned changes to CCS for September have been designed to ensure a high degree of continuity for families between subsidies available this September and subsequent subsidies under the Affordable Childcare Scheme, it is inevitable that there will be some differences given the change in eligibility rules.

Given expected parental demand and expected take-up by providers, it is estimated that up to 70,000 children and their families will benefit from childcare subsidies from this September, through either the CCS or TEC programmes.

Given expected parental demand and expected take-up by providers, it is estimated that approximately 79,000 children and their families will benefit from the Affordable Childcare Scheme during its first year of operation.

The table shows the change in CCS weekly subsidy rates that will be in effect from September 2017, for full-time and part-time subsidies. The changes include the introduction of two new bands: a Band C (with the current Band B being divided into two bands: Band B and Band C), and a universal band (open to all families with children between 6 and 36 months old, or until qualification for the Free Pre-School Programme if later).