Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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135. To ask the Minister for Children, Equality, Disability, Integration and Youth the proposals he has to improve childcare provision under the national childcare scheme for children whose parents are not working or in education or training; and if he will make a statement on the matter. [45462/21]

Roderic O'Gorman (Dublin West, Green Party)
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The National Childcare Scheme provides financial support to help parents to meet the cost of childcare and to support better outcomes for children. The schemes objectives are to promote (i) a reduction in child poverty, (ii) positive child development outcomes, (iii) labour market activation and (iv) improved quality.

The NCS is designed to be highly inclusive and to meet the needs of those families who need it the most. The NCS is based on the principle of progressive universalism and has regard to the best interests of children.

By making this fundamental shift away from the legacy schemes where subsidies are grounded in medical card and social protection entitlements, and by tangibly reducing the cost of quality childcare for thousands of families, the NCS aims to improve children’s outcomes, improve labour market participation and reduce child poverty. It is a central policy component of the NCS to poverty proof and assist people in exiting the poverty trap.

Within this framework, an income-related subsidy is payable for children up to 15 years of age. The subsidy level is determined by the family’s income and the child's age. The number of hours subsidised is determined by the parent's employment or education arrangements.

The scheme is also built to ensure that families are supported to access a minimum level of early learning and childcare provision to support positive child outcomes.

Importantly, the evidence also shows that these benefits are, in most cases, realised with part-time participation. On this basis, 20 hours are available all year round for children who have not started school, and in non-term time for school age children, regardless of whether the parents or guardians are in work or study.

During term time, the child's development needs are generally met through school participation.

Households on incomes of less than €26,000 NET can access full subsidies of up to €225 per child, per week, covering up to 45 hours week. To access 45 hours rather than 20 hours, the parent must be in some type of employment or be engaged in training.

The definition of work or study is broad, covering all forms of work or study arrangements: full-time, part-time, week-on/week-off and zero hour contracts. Moreover, the minimum hours required to engage in work or study to qualify for up to 45 hours per week is very low – at just two hours per week. In this way, the NCS encourages parents to exit poverty and deliver better outcomes for their children.

Underpinned by this approach is strong evidence that shows how growing up in poverty negatively impacts on child outcomes. Taking up work or engaging in training, even a very low number of hours, is key to enabling families to break that cycle and that is what the NCS is designed in part to support.

It also reflects the need to ensure that our systems recognise the critical role of family in children’s lives. Particularly where those families are available to care for their children.

For children living in exceptional circumstances of disadvantage or need, the NCS sponsorship arrangement is designed so that they can access free early learning and care or school age childcare for longer or full time hours where required.

The DCEDIY is committed to keeping the scheme under review and to assess whether it is meeting its objectives. I have contracted Frontier Economics to undertake a review of the National Childcare Scheme in line with Section 26 of the Childcare Support Act.

Variations on the concept of a work/study test is widely used around the wold and I have also requested that Frontier review the usage and evidence of efficacy of this approach in other countries.

This work is due to be finalised in the final quarter of this year and will inform in an evidence based manner the future development of the scheme.