Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

538. To ask the Minister for Children and Youth Affairs further to Parliamentary Question No. 1945 of 20 June 2017, and the announcement made in October 2016 (details supplied) the reason the full affordable child care scheme will not be fully implemented from September 2017; the timeframe for the universal scheme to be introduced; if back payments will be made to those that have prepared and budgeted for the scheme; if not, the way in which the €19 million set aside for the scheme will be spent; if registered child minders can avail of the scheme while the registration of the balance of child minders is being organised; and if she will make a statement on the matter. [30187/17]

Katherine Zappone (Dublin South West, Independent)
Link to this: Individually | In context | Oireachtas source

The Affordable Childcare Scheme (ACS) will be introduced at the earliest possible date. As I have stated previously, this 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. We will need to integrate data from the Department of Social Protection and the Office of the Revenue Commissioners so that the system can calculate every family’s net income and ACS subsidy. We are all keen to see the new system introduced as soon as possible, but the sheer complexity of the project means that it will take some time. I do not want to introduce the new scheme before all elements – legislation, IT and business systems – are fully in place and fully tested.

However, I do not want to delay the benefit of higher childcare subsidies for families. For that reason, major improvements in childcare subsidies will come into effect this September, within the framework of the existing childcare schemes, pending the introduction of the ACS. The improvements this September will include increases of up to 50% in targeted childcare subsidy rates. In addition, the new universal childcare subsidy for children aged between 6 months and 36 months will be available from September, in line with the announcement I made following the Government’s Budget decision in October 2016. The €19 million additional funding provided in Budget 2017 is being directed towards these changes that are being introduced in September, and which will mean significant reductions in childcare bills for tens of thousands of families.

I am satisfied that the new measures commencing this September will honour the Government’s commitment to delivering more affordable childcare to families. Back-payments will not be made. The level of universal subsidy available this September is the same as that proposed for the ACS subsidy, i.e. a maximum subsidy of €20 per week for full-time childcare, with the subsidy for part-time childcare reduced pro rata. The levels of targeted subsidy available this September, while not identical to the subsidy-rates that are proposed for the ACS, will be broadly similar to those rates, with some families receiving slightly more and some slightly less than they will receive when the ACS is introduced. These differences are inevitable given the structure of the existing childcare schemes, which involve only a limited number of subsidy-bands, whereas the ACS will allow a smooth taper to be applied to subsidy-rates. A further difference in the schemes lies in the basis of eligibility. Whereas the subsidy-rate awarded under the ACS will be based directly on a family’s income-level, the subsidy under the existing schemes is based on family income indirectly, e.g. via eligibility for a Medical Card or GP Visit Card.