Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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656. To ask the Minister for Children and Youth Affairs the estimated cost under the proposed universal subsidy of increasing the €80 per month subsidy in €20 intervals up to the amount of €600 for all eligible parents. [24165/17]

Katherine Zappone (Dublin South West, Independent)
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I assume that the question relates to the cost of the proposed universal subsidy within the Affordable Childcare Scheme (ACS). The universal element of the ACS provides a €0.50 per hour subsidy for children aged 6-36 months, for up to a maximum of 40 hours per week. Only families who use the full 40 hours of childcare or more per week will receive an €80 per month subsidy. Families using part-time childcare will receive a pro ratasubsidy.

The expected cost of the universal element of the ACS is approximately €17m per year. This cost estimate is based on an estimated 25,000 beneficiaries and current patterns of childcare usage, in terms of the mix of full-time and part-time childcare use.

The following table sets out the cost of increasing the maximum (40 hour) universal subsidy rate in increments of €20 per week, based on an assumption of no change in the number of beneficiaries of the universal subsidy. The figures in the table also assume no change in the targeted subsidy rates within the ACS. In practice, however, a significant increase in the universal subsidy rate is likely to lead to an increase in the number of beneficiaries, as the reduction in childcare fees paid by parents would lead to an increase in demand for childcare, and the targeted subsidy rates would also be adjusted to reflect changes in the universal subsidy rate.