Written answers

Wednesday, 3 June 2020

Department of Children and Youth Affairs

Covid-19 Pandemic

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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1005. To ask the Minister for Children and Youth Affairs if she will address a matter raised in correspondence by a person (details supplied) in relation to the impact of Covid-19 on the early years sector; and if she will make a statement on the matter. [8602/20]

Photo of Katherine ZapponeKatherine Zappone (Dublin South West, Independent)
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The COVID-19 pandemic has resulted in an unprecedented situation that has required a series of emergency responses from the Government.

I am acutely aware of the particular impact the pandemic and the emergency measures have had on early education providers. I am also very conscious of the importance of the early education and childcare sector, particularly in the context of the current conditions and with a view to supporting the economy as we move beyond this crisis.

Recognising this, the Temporary Covid-19 Wage Subsidy Childcare Scheme was launched on 15 April.

To support the Early Learning and Care and School-Age Childcare sector during COVID-19 closures, I announced plans on 25 March for the development for this Scheme.

The aim of the Temporary Wage Subsidy Childcare Scheme is threefold:

- to support the sustainability of the Early Learning and Care and School-Age Childcare Sector so that it is in a position to reopen after COVID-19;

- to provide parents with a reassurance that they are not required to pay fees during this COVID-19 crisis, while providing them with reassurance that they will maintain places for their children; and

- to give Early Learning and Care Educators security and retain these vital Educators in the sector.

To achieve this, the Temporary Wage Subsidy Childcare Scheme will provide funding towards a portion of staff wages and services overhead costs. Details of how to sign up have been made available through the Pobal programme platform used by childcare providers.

Clearly the sector experienced considerable anxiety and stress on March 12 when closures were announced. To alleviate this, I had directed that the programme payments (including ECCE (free pre-school) and the National Childcare Scheme) continue on an ex-gratia basis, despite services being closed until the Temporary Wage Subsidy Childcare Scheme was up and running.

Payments for those schemes continued until last Friday 10 April 2020 and reflect the amount that would have been expected by services, based on current child registrations and the calendars submitted by the service to Pobal on or before the closure of services on 12 March 2020. Whilst many services would benefit from the continuation of these ex gratia payments, many other services which relied more heavily on parental income were extremely exposed with the loss of this income stream.

It was important to move to this new temporary funding model which repurposes existing monies to support the multiplicity of childcare provider types with varying ratios of state income and parental contribution. For example, had the schemes such as ECCE remained as they were, services in receipt of 90-100% of their income from the State would have managed during the closure period, but those with much less would have been very severely impacted. This could have resulted in permanent closure and loss of precious capacity post-COVID.

The Temporary Wage Subsidy Childcare Scheme is available to all of the 4000 plus services that were contracted to my Department on March 12 and builds on the wider provisions by Government. It also recognises the unique place and importance of the childcare sector.

Details regarding the mechanics of the scheme are addressed in a comprehensive set of FAQs that have been published on the DCYA website and shared with providers. The Pobal Service Provider Centre is also available to respond to queries.

My Department has made considerable investment in the sector in recent years. I want to preserve the fruits of this investment and I want to ensure that early education and childcare places are still there for parents when these difficult times pass.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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1006. To ask the Minister for Children and Youth Affairs if she will address matters raised in correspondence (details supplied) regarding the response of her Department to Covid-19 in relation to the childcare sector; and if she will make a statement on the matter. [8616/20]

Photo of Katherine ZapponeKatherine Zappone (Dublin South West, Independent)
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I note that in her correspondence, the Deputy’s constituent refers to the Covid-19 Pandemic Unemployment Payment, stating her understanding that she is ineligible for this due to her age. It is also the understanding of my Department that this is the case, but, this is under the remit of the Department of Employment Affairs and Social Protection and I would refer the Deputy to that Department for further information.

However, I do wish to clarify that the Deputy’s constituent can apply for support for her service under my Department’s Temporary Wage Subsidy Childcare Scheme (TWSCS).

The TWSCS supplements Revenue’s Temporary Wage Subsidy Scheme in two ways. One of these ways is to provide greater subsidies for wages, which an owner/operator who is not paid a wage therefore cannot directly benefit from; their staff however may be able to receive the benefit of the subsidy. Additionally, the TWSCS also provides top-up funding to support non-deferrable overhead costs. This funding is calculated at 15% of wage costs, with a minimum amount of €300 per week awarded if 15% of wage costs is lower. An owner/operator who is neither eligible for the Covid-19 Pandemic Unemployment Payment or the Revenue’s Temporary Wage Subsidy Scheme may still be able to access this overhead payment under the TWSCS. I hope that this measure will provide some support to the Deputy’s constituent during these extraordinary times.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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1007. To ask the Minister for Children and Youth Affairs if she will address matters raised in correspondence (details supplied) regarding the response of her Department to Covid-19 in relation to the childcare sector; and if she will make a statement on the matter. [8617/20]

Photo of Katherine ZapponeKatherine Zappone (Dublin South West, Independent)
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The COVID-19 pandemic has resulted in an unprecedented situation that has required a series of emergency responses from the Government.

I am acutely aware of the particular impact the pandemic and the emergency measures have had on the Early Learning and Care (ELC) and School Age Childcare (SAC) providers. I am also very conscious of the importance of the ELC and SAC sector for children’s positive development and in terms of supporting the economy as we move beyond this crisis.

Recognising this, I launched the Temporary Wage Subsidy Childcare Scheme (TWSCS) on 15 April. This scheme is a very significant measure to support the sector. The aim of the TWSCS is threefold:

- to support the sustainability of the ELC and SAC sector so that it is in a position to reopen after COVID-19;

- to provide parents with a reassurance that if their ELC and SAC provider signs up to the scheme, they are not required to pay fees during this COVID-19 crisis, and they will maintain their ELC / SAC place when services resume and

- to give Early Learning and Care practitioners security and to retain these vital Educators in the sector.

To achieve the objectives set out above, the TWSCS provides substantial funding towards staff wages and provides for a portion of services’ overhead costs. Details of how to sign up have been made available through the Pobal programme platform used by ELC and SAC providers.  The TWSCS repurposes existing ELC and SAC monies to layer on top of the Revenue Temporary Wage Subsidy Scheme (TWSS) and to support the multiplicity of ELC and SAC provider types with varying ratios of State income and parental contribution.

The TWSCS builds on the wider provisions by Government and also recognises the unique place and importance of the ELC and SAC sector.

Before COVID-19, a number of supports were available to support services with sustainability issues, and these remain available to services at this time.

Details regarding the operation of the scheme are addressed in a comprehensive set of FAQs that have been published on the DCYA website and shared with providers. The Pobal Service Provider Centre is also available to respond to queries.

My Department has made considerable investment in the sector in recent years. I want to preserve the fruits of this investment for children, families and our much valued ELC and SAC workforce and ensure that, when COVID- 19 has passed, we will have retained as many services, staff and places as possible.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1008. To ask the Minister for Children and Youth Affairs if she will address matters raised in correspondence (details supplied) regarding the response of her Department to Covid-19 in relation to the childcare sector; and if she will make a statement on the matter. [8618/20]

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

The COVID-19 pandemic has resulted in an unprecedented situation that has required a series of emergency responses from the Government.

I am acutely aware of the particular impact the pandemic and the emergency measures have had on the Early Learning and Care (ELC) and School Age Childcare (SAC) providers. I am also very conscious of the importance of the ELC and SAC sector for children’s positive development and in terms of supporting the economy as we move beyond this crisis.

Recognising this, I launched the Temporary Wage Subsidy Childcare Scheme (TWSCS) on 15 April. This scheme is a very significant measure to support the sector. The aim of the TWSCS is threefold:

- to support the sustainability of the ELC and SAC sector so that it is in a position to reopen after COVID-19;

- to provide parents with a reassurance that if their ELC and SAC provider signs up to the scheme, they are not required to pay fees during this COVID-19 crisis, and they will maintain their ELC / SAC place when services resume and

- to give Early Learning and Care practitioners security and to retain these vital Educators in the sector.

To achieve the objectives set out above, the TWSCS provides substantial funding towards staff wages and provides for a portion of services’ overhead costs. Details of how to sign up have been made available through the Pobal programme platform used by ELC and SAC providers. The TWSCS repurposes existing ELC and SAC monies to layer on top of the Revenue Temporary Wage Subsidy Scheme (TWSS) and to support the multiplicity of ELC and SAC provider types with varying ratios of State income and parental contribution.

The TWSCS builds on the wider provisions by Government and also recognises the unique place and importance of the ELC and SAC sector.

Details regarding the operation of the scheme are addressed in a comprehensive set of FAQs which has been published on the DCYA website.

With regard to the questions raised by the Deputy's constituent which are not directly addressed in the FAQ:

- The DCYA Temporary Wage Subsidy Childcare Scheme (TWSCS) is a supplement to the Revenue Temporary Wage Subsidy Scheme (TWSS) and, as such, rules associated with the Revenue Scheme apply to the TWSCS. DCYA has no discretion with regard to the payment of certain providers who were not on the payroll.

- The DCYA TWSCS provides funding to enable employers to top-up their employees’ wages as per the scheme guidelines. The DCYA TWSCS does provide additional funding towards the non-deferrable operating costs of an ELC/SAC service, including those of sole traders with no employees. 

- The terms of the Revenue TWSS have been updated to resolve the potential issue your constituent identified, where an employer wishes to pay a greater level of top-up  in order to bring the employee’s pay to €350 per week, tapering of the Revenue subsidy will now not take place 

My Department has made considerable investment in the sector in recent years. I want to preserve the fruits of this investment for children, families and our much valued ELC and SAC workforce and ensure that, when COVID- 19 has passed, we will have retained as many services, staff and places as possible.

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