Peter Burke (Longford-Westmeath, Fine Gael)
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158. To ask the Minister for Children, Equality, Disability, Integration and Youth if expenses such as mortgage and loans will be considered when assessing a means test for the national childcare scheme; and if the income threshold of €60,000 will be increased to include these families. [36532/22]

Roderic O'Gorman (Dublin West, Green Party)
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Through the National Childcare Scheme and a range of other measures, I am committed to changing Ireland’s childcare system from one of the most expensive in the world to one of the very best. In designing the National Childcare Scheme, extensive research and consultations have been carried out to ensure that this goal is achieved and that the Scheme can help as many families as possible.

In recognition of the importance of early years care and education, an Inter-Departmental Group was established in 2015 to identify and assess policy options for increasing the affordability, quality and supply of early years and school-age care and education services in Ireland. It suggested that the new, streamlined scheme should provide means-tested support towards childcare costs based primarily on income reducing the administrative burden associated with previous schemes. In this regard the scheme was designed to ensure everyone is assessed on the same consistent, equitable basis having regard to their income and their need for childcare.

The Childcare Support Act defines what may be considered as income for the purposes of the income assessment. This includes “income whether in the nature of a benefit or allowance arising from social welfare, social insurance or other sources of a similar character”. This category would include payments under a settlement, covenant, estate or a payment in respect of maintenance and also child benefit.

The basis for “allowable deductions” from the income assessment are as described in Schedule 1 of the Childcare Support Act 2018. In short, they relate to payments that support participation in employment, education or enable a person meet expenses from exception family or social circumstances.

These deductions are in place as part of the scheme wider goal to support labour activations and avoid certain poverty traps that existed in earlier schemes

In measuring income it allows supports and clear, fair and transparent system based on progressive universalism. It ensures that those who need the highest subsidy because they have the lowest income receive the highest subsidy.

It must also be emphasised that adding such complexity to the application process will create a substantial barrier to entry for many families experiencing socio-economic disadvantage.

I recognise however that the burden of early learning and childcare remains too high and we need to do more to support families. In this context, I have signalled that I will be prioritising further investment in the NCS in Budget 2023, with a focus on substantially improving affordability for families.