Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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222. To ask the Minister for Children and Youth Affairs if she will address a matter (details supplied); and if she will make a statement on the matter. [18002/19]

Katherine Zappone (Dublin South West, Independent)
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Through the National Childcare Scheme and a range of other measures, we are committed to changing Ireland’s childcare system from one of the most expensive in the world to one of the very best. In designing the National Childcare Scheme, extensive research and consultations have been carried out to ensure that this goal is achieved and that the Scheme can help as many families as possible. 

The National Childcare Scheme will greatly increase the number of families who can access financial support. The Scheme removes many of the restrictive eligibility requirements of the existing support programmes, whereby a parent must be in receipt of certain Social Protection payments or a Medical Card in order to receive targeted supports. This 'poverty-proofs' the Scheme by ensuring that families at or below the relative income poverty line will benefit from the highest subsidy rates under the Scheme.  It will also make work pay for parents trying to get back into employment or training as they will now be able to avail of help with their childcare costs.  Many working families will, for the first time, be entitled to subsidies which will reduce their childcare costs significantly.  Others will see an increase in their level of subsidy.  For example, a family with a child aged two in full-time care (40 hours) and currently benefitting from the maximum subsidy of €145 per week under CCS Band A, would see their subsidy increase to €174 per week, an additional subsidisation of €1,500 per annum.

Arrangements are in place to ensure that no one loses out in the initial transition to the new Scheme. So, whilst there may have been fears that, in a small number of cases, where a family currently receiving the maximum amount of financial support for full-time childcare under an existing programme may receive less under the new Scheme, particularly if their child is, in reality, receiving after-school care only rather than full-time childcare, they will not lose out.  The family can continue to access their current targeted supports (i.e. effectively remain on their current payment) until the end of August 2020, 16 months from now. 

I have also directed my officials to undertake research and analysis to examine any adjustments to the National Childcare Scheme which might be required to address unusual or anomalous cases, where this is the right thing to do to protect and benefit lower income parents.  In this regard, I would highlight that the new National Childcare Scheme has been designed to be flexible, with income thresholds, maximum hours and subsidy rates which can be adjusted in line with Government decisions and as more investment becomes available.  As such, any adjustments deemed necessary by Government can be carried out in a quick and responsive manner.

The Scheme is designed so that families who need the most support can receive it. Maximum subsidy rates are payable in all cases where a family meets the lowest income threshold, tapering down smoothly as income increases.

An Income Assessed subsidy is available to families with children aged between 24 weeks and 15 years. This subsidy will vary depending on family income, the child’s age and their educational stage. It can be used towards the cost of a registered childcare place for up to a maximum of 40 hours per week where parents are working, studying or training, or in circumstances where a parent is unavailable to care for a child. Where parents are not working, studying or training, the subsidy will be paid for up to a maximum of 15 hours per week. 

In order to qualify for enhanced hours (i.e. up to a maximum of 40 hours per week), both the applicant and the applicant’s partner, if applicable, must meet at least one of the following criteria, they must be:

- In work

- In study 

- Transitioning into, or out of, work or study

- Unavailable to provide childcare for the child.