Written answers

Thursday, 4 May 2023

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

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Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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207. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will consider a financial package for childcare for persons who wish to return to work; and if he will make a statement on the matter. [20946/23]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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The National Childcare Scheme (NCS) provides financial support to help parents to meet the cost of childcare and allow children to access Early Learning and School Age Childcare. The Scheme aims to improve outcomes for children, reduce poverty, facilitate labour activation, and tangibly reduce the cost of ELC and SAC for tens of thousands of families. NCS supports take the form of three separate subsidies:

  • Firstly, a universal subsidy of €1.40 per hour is available to all children attending childcare aged between 24 weeks and 15 years.
  • Secondly, an income assessed subsidy is also available, this subsidy is means tested and is calculated based on the applicants’ individual circumstances. The subsidy varies depending on the level of family income, parent work status, the child’s age and educational stage, and the number of children in a family.
  • Finally, a Sponsorship arrangement available under the NCS makes special provision for vulnerable children. The NCS Sponsorship arrangement allows designated bodies to refer children to the Scheme on child welfare, protection, family support or other specified grounds. The Scheme pays the full cost of the childcare for families referred to the Scheme.
The income assessed subsidy of the NCS supports labour market and education participation of parents by providing an enhanced hours subsidy of 45 hours per week for parents who are engaged in work, study or training. Parents not engaged in work, study or training are entitled to a standard hour subsidy at a maximum of 20 hours per week. Parents can qualify for the enhanced hours subsidy of 45 hours per week for a period of up to 4 weeks in advance of starting or ending a period of work or study. Applicants may combine both transition periods to bridge between exiting and entering periods of work and study for up to 8 weeks of enhanced hours.

The definition of work or study is broad, covering all forms of work or study arrangements: full-time, part-time and week-on/week-off. Moreover, the minimum hours required to engage in work or study to qualify for up to 45 hours per week is very low – at just two hours per week. In this way, the NCS encourages parents to return to the labour force or education and deliver better outcomes for their children.

In addition to the above, the NCS has been substantially expanded in recent months to further reduce the cost of childcare for families. Of most significance:
  • Since May 2022, the practice of deducting hours spent in preschool or school from the entitlement to the NCS subsidised hours has been discontinued;
  • The upper age eligibility for the NCS Universal Award has been extended from 3 years of age to 15 years of age;
  • From 2 January 2023, the minimum rate for NCS subsidies increased from €0.50 to €1.40.

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