Written answers

Tuesday, 9 November 2021

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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479. To ask the Minister for Children, Equality, Disability, Integration and Youth the level of funding for childcare in each of the years from 2011 to 2020 as a percentage of GDP and as a percentage of the annual budget in euro. [54106/21]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Government funding on early learning and childcare has increased significantly in recent years, from a relatively low base. As of 2020, funding levels stood at approximately €638m, up from €235m in 2011. Next year, funding will reach €716 million. This excludes the significant spending on Covid-19 supports for the sector, including the Employment Wage Subsidy Scheme. First 5, the Whole-of-Government Strategy for Babies, Young Children and their Families commits to reaching funding levels of approximately €1 billion by 2028.

The table below sets out the level of early learning and childcare funding in each of the years from 2011 to 2020 as percentage of GDP, and as a percentage of the annual budget in euro.

ELC allocation GDP (€bn) ELC allocation as a % of GDP Budget (€bn) % Budget
2011 0.253 203.6 0.12% 75.9 0.33%
2012 0.257 203.5 0.13% 67.6 0.38%
2013 0.261 206 0.13% 67.5 0.39%
2014 0.264 224 0.12% 70.5 0.37%
2015 0.265 280.4 0.09% 70.4 0.38%
2016 0.344 286.1 0.12% 68.1 0.51%
2017 0.466 311.6 0.15% 68.9 0.68%
2018 0.485 339.8 0.14% 72.9 0.67%
2019 0.574 356.5 0.16% 77.0 0.75%
2020 0.638 377.4 0.17% 80.0 0.80%

It is important to note, however that measuring total spend as a proportion of GDP may not be a useful metric when considering Ireland’s early learning and childcare spend.

To address the inflation of Ireland’s GDP figure, the Central Statistics Office publish data using a modified Gross National Income figure, GNI*, that excludes globalisation effects. Early learning and childcare investment monitoring as a percentage of GNI* may give a more accurate estimate of levels of government investment in early learning and childcare.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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480. To ask the Minister for Children, Equality, Disability, Integration and Youth the details of the exact reforms to the national childcare scheme mentioned in budget 2022. [54107/21]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Following Budget 2022, two significant reforms will be introduced to the operation of the National Childcare Scheme (NCS). It is intended that these reforms will make it possible for significantly more families to apply to the NCS.

The first change is the discontinuation of the practice of deducting hours spent in ECCE or school from the entitlement to NCS subsidised hours.

Currently, where both parents in a household are in work or study, eligible families can receive a subsidy for up to 45 hours (enhanced hours) per week and, for households where a parent is not in work or study they can receive up to 20 hours (standard hours) per week of subsidy. Where a child is in pre-school, ECCE or school these hours are subtracted from their entitlement to NCS subsidised hours.

With this change, parents will be able to avail of all these hours regardless of time spent in school or ECCE.

It is anticipated that this will have the most significant impact on children in socio-economically disadvantaged communities and, on services with high concentrations of families from socio-economically disadvantaged communities.

This change will require adjustments to secondary legislation and to the scheme operating system. This work is expected to be completed in Spring 2022 and the change will then be implemented.

The second reform relates to the universal subsidy. This will be made available to all families with children up to the age of 15 from September 2022. Parents do not have to undergo an assessment to avail of this subsidy. The universal subsidy provides €0.50 cent per hour towards the cost of a registered childcare place up to a maximum of 45 hours a week, which totals €1,170 per annum. It is estimated an additional 40,000 children may benefit from the extension of the universal subsidy.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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481. To ask the Minister for Children, Equality, Disability, Integration and Youth the measures his Department has undertaken to reduce the cost of childcare in June 2020; and the policies his Department plans to implement to reduce the cost of childcare by June 2024. [54108/21]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Addressing affordability in Early Learning and Care and School Age Children (ELC and SAC) is a priority for the Department. An Expert Group has been convened by the Department to develop a new funding model for ELC and SAC. The Expert Group is tasked with examining the current model of funding, its effectiveness in delivering affordable, quality, sustainable and inclusive services and considering how additional resourcing can be delivered for the sector to achieve these objectives.

The Expert Group are supported by a research partner, who have produced and published a set of working papers, with three that directly address affordability issues.

The report of the Expert Group is currently being drafted and is on track to be submitted to Minister in November, before being submitted to Government. The work of the Expert Group has significantly informed the developments being introduced in Budget 2022. The full implementation of the Expert Group's recommendations is likely to be a multi-annual process, as and when funding becomes available on an incremental basis.

Budget 2022 brought in a transformative package of measures for the childcare sector. The significant additional funding includes delivering quality for children and affordability for parents. This translates to €716m (an increase of €78m from €638million in 2021) for the Early Learning and Childcare sector for 2022.

The package of measures for the ELC and SAC sector contains a number of elements. A significant feature of the new funding stream relates to, where, in return for a commitment that fees to parents will not increase, providers will be supported in meeting their operating costs, including increased costs related to improved quality measures.

A key vehicle for the delivery of measures to address affordability is the National Childcare Scheme.

Budget 22 will see two significant reforms to the National Childcare Scheme (NCS) to enhance affordability. The first change is the discontinuation of the practice of deducting hours spent in ECCE or school from the entitlement to NCS subsidised hours. Currently, where both parents in a household are in work or study, eligible families can receive a subsidy for up to 45 hours (enhanced hours) per week and, for households where a parent is not in work or study they can receive up to 20 hours (standard hours) per week of subsidy. Where a child is in pre-school, ECCE or school these hours are subtracted from their entitlement to NCS subsidised hours. With this change, parents will be able to avail of all these hours regardless of time spent in school or ECCE. It is anticipated that this will have the most significant impact on children in socio-economically disadvantaged communities and, on services with high concentrations of families from socio-economically disadvantaged communities.

Secondly, the universal subsidy will be made available to all families with children up to the age of 15 from September 2022. Parents do not have to undergo an assessment to avail of this subsidy. The universal subsidy provides €0.50 cent per hour towards the cost of a registered childcare place up to a maximum of 45 hours a week, which totals €1,170 per annum. It is estimated an additional 40,000 children may benefit from the extension of the universal subsidy.

The National Childcare Scheme is designed so that it can change and grow based on future Government policy decisions and as additional funding becomes available.

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