Written answers

Thursday, 31 March 2022

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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322. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will publish the results of cost of childcare surveys compiled by his Department within the past five years; if it is the case that while costs in regional and city locations are similar, the differential in parental charges is considerable; and if he will make a statement on the matter. [17411/22]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Crowe was commissioned by the then Department of Children and Youth Affairs to undertake an independent review on the cost of providing quality childcare in Ireland in 2018. The brief for the Review included:

- analysing the current costs of providing childcare and the factors that impact on these costs;

- the development and delivery of a model of the unit costs of providing childcare that allows analysis of policy changes and variation in cost-drivers, including the potential impact of professionalisation; and

- providing an objective, high-level market analysis of the childcare sector in Ireland, including analysis of fee levels charged to parents.

The project has provided a robust evidence base for the development of policy and implementation of initiatives to support the delivery of high quality ELC and SAC in Ireland.

The final report, Independent Review of the Cost of Providing Quality Childcare Services in Ireland, was published on 19 October 2020.

The report found that average unit cost per hour in the cost modelling tool is 63 cent higher for providers operating in urban settings versus those in rural areas. The urban/rural split is based on the CSO classification of services. The average unit cost in urban settings is €4.37 as opposed to an average unit cost of €3.74 in rural settings. While this shows there is a difference in cost for those operating in urban and rural settings, it does not take into account the variation in cost within these settings.

Data on provider income and cost was also collected in 2021 by Pobal to enable similar analysis. A further round of data collection on income and cost drivers will take place in April 2022 to gather to most recent information.

Information on fees charged is collected as part of the Annual Early Years Sector Profile, administered by Pobal. The Deputy is correct in saying that fees vary across the country. According to the 2019/20 Sector Profile, average fees are higher in services located in urban areas – 13% higher for full day care, 12% higher for part-time provision and almost 7% higher for sessional care. It is worth noting that the use of averages can mask significant variation in fees between providers.

As part of Budget 2022, I was pleased to announced Core Funding, a new supply-side funding stream available to Early Learning and Care (ELC) and School Age Childcare (SAC) providers from September. It is informed by recommendations of an Expert Group to design a new funding model for the sector that were adopted by Government in December.

The introduction of fee management measures is one of the recommendations of the Expert Group, as approved by Government. Fee management will start with a requirement for providers to maintain fees at or below September 2021 levels to access the new Core Funding scheme. Further information on proposed fee management mechanisms in the longer term is available in the Group's report, available at:first5fundingmodel.gov.ie.

Photo of Kathleen FunchionKathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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323. To ask the Minister for Children, Equality, Disability, Integration and Youth the current capacity in school-age childcare; and if he will make a statement on the matter. [17140/22]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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Based on data gathered as part of the Annual Early Years Sector Profile 2020/21 (in June 2021), the overall capacity among ELC and SAC services in contract to provide DCEDIY funding schemes was estimated to be 220,500 places. The table below presents these estimates by age range. There was an estimated 91.177 places for children aged 4-5 and 32,644 places for children age 6 and older.

These data include places for children who are school-age (i.e. age 4 and old) but who have not yet transitioned to school. These data also refer only to services in contract to deliver DCEDIY funding schemes. In addition to these services, there are up to 600 standalone SAC services registered with Tusla providing services to school-age children but not in contract to provide DCEDIY funding schemes.

Age group Capacity
Up to 1 year (0-12 months) 2,608
1 year+ to 2 years (13-24 months) 10,630
2 years+ to 3 years (25-36 months) 23,081
3 years+ to 4 years (37-48 months) 60,360
4 years+ to 5 years (49-60 months) 67,296
5 years+ to 6 years (61-72 months) 23,881
6 years+ to 8 years (73-96 months) 16,716
8 years+ 15,928
Total 220,500

Capacity data - by type of provision - is currently being captured by the City/County Childcare Committees and will be available in the coming weeks. These data are being gathered as part of the Action Plan developed by my Department to respond to the ELC and SAC needs of Ukrainian children and their families.

Moreover, fieldwork for the next Annual Early Years Sector Profile Survey will commence in April 2022, which will allow for more detailed information on capacity among services, including SAC services, to be gathered.

Photo of Kathleen FunchionKathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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324. To ask the Minister for Children, Equality, Disability, Integration and Youth the number of children in each of the age categories supported under the national childcare scheme; and the cost per child in each of those age categories. [17162/22]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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The National Childcare Scheme (NCS) is a Scheme of financial support to help parents with the cost of their childcare.

The Scheme comprises two types of subsidies:

- A universal subsidy is payable for children between the ages of 24 weeks and 36 months (or until the child qualifies for the Early Childhood Care and Education programme if later) who are availing of childcare services from an approved childcare service provider. The universal subsidy is not means-tested and is available to all qualifying families of any income level.

- An income-related subsidy is payable for children from 24 weeks to 15 years of age who are availing of childcare services from an approved childcare service provider. The level of subsidy is determined by the family’s assessable income (i.e. gross income minus tax, PRSI and other deductibles and minus any applicable multiple child discount).

In addition to the income related subsidy and the universal subsidy the NCS makes provision for vulnerable children under section 14 of the Childcare Support Act 2018. It specifies 5 statutory bodies with which the Minister may make agreements in relation to referral procedures for free or additional childcare. Signed agreements are in place with all sponsor bodies.

Subsidy rates per hour

Universal subsidy

The universal subsidy is payable at a rate of €0.50 per hour.

Income related subsidy

The rate for income-related subsidies depends on the applicant’s reckonable income. The table below shows the maximum and minimum income-related subsidy rates per hour, which vary according to the child’s age and the child’s education stage.

Child’s age Minimum subsidy per hour Maximum subsidy per hour
Less than 12 months old €0.50 €5.10
12 to 35 months old €0.50 €4.35
3 years old or older and not yet qualifying for ECCE €0.50 €3.95
3 years old or older and qualifying for ECCE €0.00 €3.95
At school (or older than 6 years of age and less than 15 years of age) €0.00 €3.75

Sponsor Subsidy

Child’s age Subsidy per hour
0-1 year €5.87
1-3 years €5
3 years old to school age €4.54
School Age €4.31

Number of Children (14/3/2022)

Universal SubsidyNumber of Children

Age

24 weeks to 36 months13620

Income related subsidy

AgeNumber of Children

Less than 12 months old665

12 to 35 months old 12452

36 months to 5 years 11 months old and not qualifying for ECCE4684

36 months to 5 years 11 months old and qualifying for ECCE 11901

6 to 14 years and 11 months old 10267

Sponsor related subsidy

AgeNumber of Children

Less than 12 months old22

12 to 35 months old 586

36 months to 5 years 11 months old and not qualifying for ECCE253

36 months to 5 years 11 months old and qualifying for ECCE560

6 to 14 years and 11 months old912

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