Bernard Durkan (Kildare North, Fine Gael)
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320. To ask the Minister for Children, Equality, Disability, Integration and Youth the efforts currently in hand to ensure that Ireland can have a national childcare scheme where the prices paid for childcare are similar to prices paid for childcare elsewhere across the European Union; the recent progress in this regard; and if he will make a statement on the matter. [28752/22]

Roderic O'Gorman (Dublin West, Green Party)
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The most recent edition of 'Key data on early childhood education and care in Europe' published by the European Commission in 2019, highlighted the high level of fees for full time early childhood education and care for under 3s in countries which rely on market mechanisms to including Ireland, the United Kingdom and the Netherlands. Since then, the Government has set out a range of commitments in the Programme for Government to address this issue with a commitment to increase State spending to at least €1bn by 2028.

More than 100,000 children now avail of the Early Childhood Care and Education Programme (ECCE) programme, a universal two-year pre-school programme available free to all children within the eligible age range. It provides children with their first formal experience of early learning prior to commencing primary school. 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.

In addition, the National Childcare Scheme (NCS) provides financial support to help with childcare costs to more than 80,000 children. There are two types of subsidies available under the National Childcare Scheme:

- Universal subsidies are available to all families with children under 3 years old. They are also available to families with children over 3 years who have not yet qualified for ECCE. This subsidy is not means tested and provides 50c per hour towards the cost of a registered childcare place for a maximum of 45 hours per week.  

- Income Assessed Subsidies are available to families with children aged between 24 weeks and 15 years. This subsidy is means tested and will be calculated based on your individual circumstances. The rate will vary depending on family income, child’s age and educational stage, and the number of children in the family. The maximum available income assessed subsidy, dependent on the aforementioned conditions, is €5.10 per hour or a maximum weekly subsidy of €229.50.

A recent review of the NCS revealed that, as a proportion of total family childcare costs, 6% of parents receiving NCS support reported that all childcare costs were covered by the NCS, while 38% reported that half or more of their costs were covered by the NCS.

Since the review took place, I announced a further package of measures to directly address the costs associated with childcare in Budget 2022, including:

- an extension of the NCS universal subsidy to all children under 15, benefitting up to 40,000 children from September this year.

- an end to the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours from spring 2022, benefitting an estimated 5,000 children from low income families since 2 May.

- a new core funding scheme – worth €221m in a full year – to support:

1. improved quality through better pay and conditions for the workforce by supporting agreement on an ERO through the JLC;

2. the employment of graduate staff; and

3. improved sustainability and stability for services. 

The new funding model being implemented aims to transform the sector to one that is increasingly publicly funded and publicly managed, delivering a service for the public good, through a partnership between the State and providers, to the benefit of children, parents, educators and practitioners, and society overall.

A new fee management system, attached to core funding,  will mean no increase in fees from pre-pandemic levels for the September 2022 to August 2023 programme year, which, in tandem with developments to the NCS will together deliver significantly improved affordability for parents.

Bernard Durkan (Kildare North, Fine Gael)
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321. To ask the Minister for Children, Equality, Disability, Integration and Youth the plans that are underway to provide further assistance to families for childcare under the national childcare scheme with particular reference to the financial pressures placed on families due to the cost of childcare; and if he will make a statement on the matter. [28753/22]

Roderic O'Gorman (Dublin West, Green Party)
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Significant investment is being made by my Department to address affordability for parents through the National Childcare Scheme (NCS). As the Deputy may be aware, I announced a number of changes to the Scheme as part of Budget 2022. These changes will be of significant benefit to many parents.

For instance, from 2 May, the NCS no longer deducts hours spent in pre-school, or school, from NCS awards. This means that parents may use their full awarded subsidised NCS hours – benefitting an estimated 5,000 children from low income families.

In September 2022, the NCS Universal subsidy will be extended to all children under 15 years of age.  This is worth 50 cents per hour, or over €1,100 per annum for children in full time early learning and care.  The extension of the universal subsidy will benefit up to 40,000 children.

Both of these changes will result in more parents getting additional subsidised hours for early learning and childcare in Tusla registered services.

Total funding under the NCS in 2022 is estimated to be €200 million.  The NCS is demand lead so the total level of subsidy is dependent on the number of applications from parents, and the level of subsidy they are awarded. Funding for the NCS will increase over the coming three years, to improve the affordability of childcare for parents.  The amounts of NCS funding for each year will be set in the relevant Budgets. 

In addition to these improvements to the NCS, a core funding stream is being introduced in September 2022. The intention of this funding is to support providers to cover increased operating costs linked to quality improvement measures. A condition of this funding is that providers will not increase parents’ fees for early learning and childcare from September 2021 levels.  This will ensure that parents can fully benefit from NCS subsidies. Furthermore, to participate in core funding, providers will be required to offer the NCS and/or the ECCE programme to all eligible children/parents.  This will ensure that more families can access NCS subsidies.