Tuesday, 28 July 2020
Department of Children and Youth Affairs
698. To ask the Minister for Children and Youth Affairs the estimated cost of paying the overhead contribution for 2021 at the rate of payment made during 2020 and at an increased rate of 20%. [18659/20]
In order to support the sustainability of the Early Learning and Care and School-Age Childcare Sector during COVID-19, my Department launched the Temporary Wage Subsidy Childcare Scheme (TWSCS). The TWSCS provided funding towards a portion of childcare staff wages to ensure that they were retained by their employer. The TWSCS also provided a contribution towards overhead costs.
The TWSCS operated from 6 April 2020 for a period of 12 weeks and over the course of this period €19.2m was allocated to childcare services to assist specifically with overhead costs. This payment was allocated to the 3,900 childcare services that signed up to and submitted applications to the TWSCS.
Applying the 12 week payment to a full year would amount to a total estimated cost of €83.2m. The estimated full year cost of an increased rate of 20% would be €99.8m.
My Department oversees a Case Management process through which local CCCs and Pobal work together to assess and provide support to early learning and care and school age care services. Sustainability Funding is accessed through Case Management and is available for community services presenting with sustainability issues following a financial assessment by Pobal. Pobal co-ordinate the overall case management process with the CCC administering initial, and on-going, case management assistance.
In Budget 2020, funding for the Sustainability and Sectoral Employment Order Support Fund for the sector increased from €1.7m to €2.2m per annum in anticipation of the potential need to provide increased support to the sector if a Sectoral Employment Order is granted this year. The cost of increasing the funding in the existing sustainability fund by 10% would result in the existing budget rising to €2.42m.