Denise Mitchell (Dublin Bay North, Sinn Fein)
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1136. To ask the Minister for Children and Youth Affairs the estimated additional cost in 2018 of increasing the universal minimum subsidy across the affordable childcare scheme, assuming the minimum targeted subsidy is increased in tandem in 50 cent intervals up to an additional €4.50 reaching €5 per hour, assuming a start date of September; the estimated cost for a full year; and the number of children that would benefit. [24417/18]

Katherine Zappone (Dublin South West, Independent)
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I am replying to the Deputy on the understanding that she is referring to the Community Childcare Subvention (Universal) Scheme (CCSU).

As part of the Government policy to make childcare more affordable, in September 2017 I introduced a universal childcare subvention payment of up to €20 per week for families using eligible childcare providers for the care of children aged from 6 months to the first eligible point of entry to the ECCE scheme.

The maximum weekly universal childcare subsidy is €20. As CCS subsidies are currently paid according to session type, i.e. full-time, part-time, sessional, half-sessional, this maximum weekly universal subsidy rate of €20 is paid on a pro-rata basis according to session type and is not paid on an hourly basis. Please see the following table for a breakdown of the rates per session type.

The subsidy-rates according to session type are based on a rate of 50 cents per hour, allocated pro-rata depending on the number of hours per week the child attends a childcare service. The maximum rate of €20 per week - for full-time childcare - is based on 40 hours of childcare per week.

On the basis of the most recent data regarding the number of children availing of the universal payment across all session types and assuming no change in demand, the table below shows estimates of the full year cost of CCSU at the current rate of 50 cent per hour and the projected full year cost of CCSU if increased by 50 cent intervals up to €5 per hour. It should be stressed that the projected full-year cost of €170.8m is based on an assumption that the demand for childcare would not change in response to the increase in the universal subsidy. If the increased subsidy were to lead to an increase in the demand for childcare, then the cost of the measure would rise accordingly.

Table 2 Universal Subsidy (CCSU) rates