Emer Higgins (Dublin Mid West, Fine Gael)
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794. To ask the Minister for Children, Equality, Disability, Integration and Youth the reason the childcare subsidy announced in budget 2023 is applied as a reduction on the hourly rate as opposed to a monthly deduction, given many providers charge a fixed daily rate regardless of the length of time a child is in childcare for, and that parents paying the daily rate who do not avail of a full day of childcare will not benefit fully from the reduction in cost; and if he will make a statement on the matter. [55531/22]

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 is aware, I announced additional funding of €121m as part of Budget 2023 for the NCS, which has been allocated to reduce average parental co-payments for early learning and childcare.

From 2 January 2023, all families accessing registered early learning and childcare will receive a minimum hourly NCS subsidy of €1.40. This is an increase of €0.90 from the current minimum hourly rate.

Firstly, it is important to note that early learning and childcare providers are private entities and as such, they continue to set their own fees, sessions and admissions policies.

Secondly, to clarify, all subsidies under the NCS are awarded as an hourly rate, along with a maximum number of hours for which that rate is payable. Parents and providers must work together to decide on the amount of childcare that is needed and, can be provided. The hourly subsidy rate is then applied to the hours agreed between both parties. Providers simply subtract the subsidy from their published fee, giving parents access to lower childcare costs. If the hours agreed exceed those which have been awarded, the remaining hours of care will be unsubsidised and paid by the parent in full.

It is a key aspect of the Scheme that all claims are paid in arrears based on the actual attendance of a child. This is a key financial and governance control to ensure that we are maximising the benefits of public monies and that the investment is following the child.

Lastly, the Scheme has been designed to be flexible so that parents can access their award through any registered early learning and childcare service in contract to deliver the NCS. If required, parents may contact their local City/County Childcare Committee (CCC) for information and assistance with locating a suitable service or childminder in their area that is participating in the NCS. Further information on CCCs can be found at www.myccc.ie.