Robert Troy (Longford-Westmeath, Fianna Fail)
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649. To ask the Minister for Children, Equality, Disability, Integration and Youth his plans to provide heavily subsidised or free childcare (details supplied). [13046/21]

Roderic O'Gorman (Dublin West, Green Party)
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Among the range of commitments in the Programme for Government, addressing affordability in early learning and care and school-age childcare is a priority. Annual investment in early learning and childcare has increased by 141% since 2015. This funding has been directed towards improving accessibility, quality and affordability. It has, for example, funded a second year of the free pre-school programme and enabled the introduction of the National Childcare Scheme (NCS).

The Early Childhood Care and Education Programme (ECCE) programme is a universal two-year pre-school programme available to all children within the eligible age range without cost to parents. The programme is provided for three hours per day, five days per week over 38 weeks per year and the programme year runs from September to June each year. Approximately 95% of children participate in the programme prior to commencing primary school.

The National Childcare Scheme was introduced in November 2019. It offers a statutory entitlement to financial support for childcare. It establishes an equitable and progressive system of universal and income-related subsidies for children up to the age of 15. The NCS derives from the Childcare Support Act 2018 which is the first piece of primary legislation passed in Ireland specifically relating to childcare. The Scheme aims to improve outcomes for children, reduce poverty, facilitate labour activation, and tangibly reduce the cost of childcare for tens of thousands of families.

NCS subsidies are awarded as an hourly rate for a maximum number of hours per week. The maximum number of subsidised hours available to families has increased from September 2020. Parents in work, study or training can now avail of up to 45 subsidised hours of childcare per week. Parents not in work, study or training can avail of up to 20 subsidised hours of childcare per week. The Scheme comprises two types of subsidies:

- Universal Subsidy: All families with children under 3 in registered childcare, or children who are over 3 and have not yet qualified for the free preschool (ECCE) programme, can apply. This subsidy is not means tested, and provides up to €20 per week, or €1,040 per year, off the cost of a registered childcare place.

- Income Assessed:Families with children aged between 24 weeks and 15 years who are attending registered childcare and who have a reckonable household income (NET) of less than €60,000 can apply for an Income Assessed subsidy. Subsidy rates are tailored based on individual circumstances, such as reckonable family income, child’s age and their educational stage. The highest subsidy rate is €5.10 per hour for a baby living in a family with a household income of less than €26,000 per year, or €229 per week. The maximum subsidy for a school age child is €3.75 per hour per week.

More information on the NCS is available to parents by contacting the Parent Support Centre on 01 906 8530, Monday to Friday 9am-5pm, or on-line at www.ncs.gov.ie.

First 5, the whole-of Government strategy for babies, young children and their families, has committed to a doubling of investment in early learning and childcare in the decade to 2028. In the context of this increased investment, a key project to address affordability is the development of a new funding model. An Expert Group is leading on this work.

Extensive research has already been commissioned to inform the Expert Group's work. The Research Partner, Frontier Economics, have so far produced and published five working papers, with three that directly address affordability issues entitled: “International Comparisons of Fees, Staff Wages and Public Investment in Early Learning and Care”; “International Approaches to Funding Early Learning and Care and School-Age Childcare to Reduce Costs for Parents”; and “Mechanisms to Control Fees Charged to Parents for Early Learning and Care and School-Age Childcare”. The research identifies international practice and learning that will be of value for the reform of the funding model in Ireland.

The recommendations of the Expert Group will be made in Autumn 2021 and will set out how the additional funding pledged in First 5 can deliver optimally for children, families and the State. Further information on the progress of this work, and the working papers published to date, can be found at first5fundingmodel.gov.ie.