Jan O'Sullivan (Limerick City, Labour)
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268. To ask the Minister for Children and Youth Affairs the reason for the delay in introducing the affordable child care scheme; when her attention was drawn to this; when it is expected she will address those reasons and commence the scheme; if the maximum and minimum subsidies indicated (details supplied) still apply; and if she will make a statement on the matter. [21210/17]

Katherine Zappone (Dublin South West, Independent)
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The Affordable Childcare Scheme is an extremely complex and ambitious project because of all that is involved – legislation, new business processes, data protection and building a new IT system. Since the policy paper for the introduction of the Affordable Childcare Scheme was approved by Government in October 2016, officials in DCYA and Pobal have been working intensively to plan for the implementation of this Scheme. The Scheme must be fully functional and rigorously tested before it is introduced.

I committed to ensuring that parents would benefit from September 2017, and I will be delivering on this pledge.

I recently announced that a number of changes will be made to existing childcare schemes that will bring substantial benefits to up to 70,000 children and their families from this September. These changes will include: a new universal childcare subsidy for children aged from 6 months up to 36 months old (or qualification for the free pre-school programme); and increases of up to 50% in childcare subvention rates provided under existing targeted childcare schemes.

I was informed during the first week of February that it would not be possible to have a fully automated IT system for the Affordable Childcare Scheme operational in September. I announced this at a meeting of the Oireachtas Committee on Children and Youth Affairs on February 8th, whereupon I also stated my hope that the Affordable Childcare Scheme could be introduced this September on the basis of semi-automated income assessments. Officials in my Department closely examined this possibility, however, given the additional time needed for such income assessments, this scenario would have required opening the Scheme to applications in June. Given the extensive requirements of even a semi-automated process – including legislation, IT development of a parent application portal, and extensive new business processes – it was determined that this scenario was not achievable within the timeframe.

Officials in my Department and in Pobal are now working intensively to deliver the full Affordable Childcare Scheme – including automated income assessments, at the earliest possible date. Rigorous governance and project-monitoring procedures are in place for the Scheme, including a Project Board that meets on a 3-weekly basis which includes representatives of my Department, the Department of Social Protection, the Revenue Commissioners, Pobal, and an independent member. In addition, the IT development is currently undergoing an independent peer review carried out by the Office of the Government Chief Information Officer.

There has been no change to the maximum and minimum subsidies approved by Government in January, which will apply when the Affordable Childcare Scheme is introduced. The maximum subsidies under the Affordable Childcare Scheme will range from €3.76 per hour for school-aged children to €5.11 per hour for children between 6 and 12 months old, for up to a maximum of 40 hours per week. The minimum subsidy for children aged between 6 and 36 months (or qualification for the Free Pre-School programme if later) will be €0.50 per hour. There will be no minimum subsidy for older children.