Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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498. To ask the Minister for Children and Youth Affairs the reason children in community childcare settings will be restricted to 15 hours per week if their parents are not in full-time employment or education; her views on whether this will have a serious negative impact on vulnerable children that rely on their childcare settings for hot meals; and if she will make a statement on the matter. [10708/19]

Katherine Zappone (Dublin South West, Independent)
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 The Affordable Childcare Scheme (ACS) is a new, national scheme of financial support for parents towards the cost of childcare.  The development of this Scheme is a significant move forward in delivering quality, accessible, affordable childcare to families throughout Ireland. 

The Scheme entails a fundamental shift away from subsidies grounded in medical card and social protection entitlements, and towards a comprehensive and progressive system of universal and income-based subsidies.  By making this shift and by tangibly reducing the cost of quality childcare for thousands of families across Ireland, the Scheme aims to improve children's outcomes, support lifelong learning, make work pay and reduce child poverty. It is also designed to have a positive impact on gender equality in relation to labour market participation and employment opportunities.

The Scheme will ultimately replace the existing targeted childcare schemes with a single, streamlined and user-friendly scheme, providing both universal and targeted childcare subsidies.  To make the transition to the new scheme as smooth as possible, families can choose to make the switch to the new Scheme once it launches (targeted for October 2019) or can remain on their current childcare subsidy programme for one final year.

With regard to income-based subsidies awarded under the Scheme, parents who are working, studying or who meet certain other conditions will qualify for an enhanced-hours subsidy (up to a maximum of 40 hours per week).  The definitions of ‘work’ and ‘study’ will be set out in regulations made under the Childcare Support Act 2018 and will be comprehensive, covering differing types of work and study arrangements, such as part-time, week on/ week off and zero hour contract arrangements.  

Parents who do not qualify for an enhanced hours subsidy may still qualify for a standard-hours subsidy (up to a maximum of 15 hours per week).  This approach reflects the evidence on the strong benefits of early childhood care and education for young children and, particularly, those from disadvantaged backgrounds but also, the evidence that these benefits are – in most cases – realised with part-time participation. The cap of 15 hours will provide for continuity between the Affordable Childcare Scheme and the ECCE scheme, whereby it will be possible for a child to commence subsidised sessional care before the age of 3 and to continue in such care without disruption or a change of hours as they transition into the ECCE scheme.

Families with high levels of need, who require childcare for child welfare, child protection or family support reasons, may be referred for childcare support by a specified “sponsor” body.  Where such a referral is made, the family will automatically qualify for a subsidy for the number of hours considered appropriate by the sponsor without having to satisfy the scheme’s eligibility, income or enhanced hours requirements.  There is no general minimum or maximum age limit for a child who is the subject of a referral by a sponsor.  However, sponsor bodies will adhere to strict criteria for qualification for referral as set out in Agreements made under section 14 of the Childcare Support Act 2018.

Finally, my Department is currently undertaking a Sustainability Review of a range of community childcare providers in some of the most disadvantaged areas in Ireland.  The impact of the standard hours subsidy limit of 15 hours is one of the items being considered as part of this review.  The review is due to be completed in quarter 2 of this year and will inform any future policy developments in this area.