Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

The National Childcare Scheme (NCS) is a subsidy provided to help parents to meet the cost of childcare and allow children to access Early Learning and School Age Childcare. The subsidy is progressive and depends on a number of factors including the age of the child, the income of the household and the number of children in the family. Those with the lowest incomes receive the highest subsidies. The subsidy is subtracted from the fee and the balance (if the fee is not entirely offset) is then charged to the parents. These subsidies can be as much as €229.50 per week

It is important to note that the hourly subsidy awarded to each family under the income-assessed scheme varies depending upon a number of factors including the age and number of their children, and their household's reckonable income. This award can then be used to off-set the cost of up to 45 hours of care a week, but the number of hours used is a matter for the individual family and their provider. This variability in family claims should be borne in mind when considering the figures.

Table 1: The total value of successful claims with application type of Income Assessed by year and income band (with income <= €60k)

Income band	2020	2021	2022	2023	2024*	Total
<= 20,000	€12,381,719	€33,983,436	€46,240,734	€53,304,873	€19,322,214	€165,232,977
20,001-30,000	€12,502,793	€34,436,444	€50,853,439	€62,081,006	€23,682,137	€183,555,819
30,001-40,000	€9,939,300	€25,466,244	€35,054,641	€45,479,099	€18,508,805	€134,448,089
40,001-50,000	€6,343,962	€14,301,669	€19,615,107	€27,850,985	€10,385,687	€78,497,410
50,001-60,000	€2,270,778	€4,818,243	€6,542,941	€14,701,979	€5,720,690	€34,054,631
Total	€43,438,552	€113,006,036	€158,306,862	€203,417,943	€77,619,533	€595,788,926

Table 2: The number of unique children with a successful claim with application type of Income Assessed by year and income band (with income <= €60k)

Please note that children may have more than one application in any calendar year and the applications may have different income levels so children may appear in more than one income category in the same calendar year. A significant proportion of children have claims in more than one calendar year.

Income band	2020	2021	2022	2023	2024*
<= 20,000	7,780	13,720	18,708	21,183	13,454
20,001-30,000	7,887	14,898	20,976	25,533	16,699
30,001-40,000	8,052	14,531	19,235	23,719	16,434
40,001-50,000	7,435	12,333	16,263	19,090	12,512
50,001-60,000	5,672	8,687	11,348	14,103	9,499
Total	33,146	52,927	70,447	81,483	64,313

Table 3a: The average hourly subsidy for successful claims with application type of Income Assessed by year and income band (with income <= €60k)

Income band	2020	2021	2022	2023	2024*
<= 20,000	€4.12	€4.09	€4.05	€4.01	€4.00
20,001-30,000	€3.98	€3.94	€3.92	€3.91	€3.90
30,001-40,000	€3.05	€3.03	€3.04	€3.30	€3.29
40,001-50,000	€1.93	€1.92	€1.96	€2.54	€2.53
50,001-60,000	€0.87	€0.86	€0.94	€1.81	€1.81
Total	€2.88	€2.97	€3.00	€3.28	€3.25

Table 3b: The average weekly subsidy for successful claims with application type of Income Assessed by year and income band (with income <= €60k)

Income band	2020	2021	2022	2023	2024*
<= 20,000	€97.7	€98.2	€96.4	€93.5	€87.9
20,001-30,000	€93.0	€93.9	€93.6	€91.7	€86.8
30,001-40,000	€71.0	€72.3	€71.0	€74.9	€70.0
40,001-50,000	€47.0	€47.1	€46.6	€57.5	€53.0
50,001-60,000	€22.9	€22.7	€23.1	€42.0	€38.5
Total	€68.4	€71.5	€71.3	€75.7	€70.5

* To 18th May 2024

The number of unique children with an NCS claim is defined as those with at least one successful claim ( i.e. a claim that was eligible for payment following submission of attendance returns by the service provider and parental confirmation, where applicable) for each year 2020, 2021, 2022, 2023 and 2024 year to date (until 18 May 2024).

The information provided is for claims with an Application Type of “Income Assessed” with the income provided being the reckonable income. Some applications may have type “Income Assessed”, but the actual award may be at universal subsidy rates if the reckonable income is too high. Therefore, in the tables above, claims with incomes > €60,000 have been excluded.

The sum of the children across all years by income band is not provided because children may have subsequent applications with different income bands. The total number of unique children with Income Assessed claims with income <= 60k is 114,515.

Children may have more than one application in any calendar year and the applications may have different income levels so children may appear in more than one income category in the same calendar year. A significant proportion of children have claims in more than one calendar year.

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

The National Childcare Scheme (NCS) is a subsidy provided to help parents to meet the cost of childcare and allow children to access Early Learning and School Age Childcare. The subsidy is progressive and depends on a number of factors including the age of the child, the income of the household and the number of children in the family. Those with the lowest incomes receive the highest subsidies. The subsidy is subtracted from the fee and the balance (if the fee is not entirely offset) is then charged to the parents. These subsidies can be as much as €229.50 per week.

It is important to note that the hourly subsidy awarded to each family under the income-assessed scheme varies depending upon a number of factors including the age and number of their children, and their household's reckonable income. This award can then be used to off-set the cost of up to 45 hours of care a week, but the number of hours used is a matter for the individual family and their provider. This variability in family claims should be borne in mind when considering the figures.

Below are tables of the average hourly and weekly subsidy levels for Income assessed NCS claims by income decile at snapshot dates for each of the years 2020 to 2024.

Table 1 (2024): Average hourly and weekly subsidy levels for Income Assessed NCS claims with income <= €60k, by income decile for 2024 (using a snapshot as at 2024/04/29)

Decile	Income band for this decile for 2024	Number of children	Average hourly subsidy	Average weekly subsidy
1	0- €15,212	5,705	3.99	87.30
2	€15,213-€20,105	5,689	3.98	84.00
3	€20,106-€24,517	5,707	3.99	87.11
4	€24,518-€28,352	5,697	3.90	84.37
5	€28,353-€31,958	5,690	3.62	75.41
6	€31,959-€35,948	5,693	3.34	68.50
7	€35,949-€40,748	5,705	3.02	62.26
8	€40,749-€46,254	5,694	2.63	53.26
9	€46,255-€52,239	5,702	2.21	45.27
10	€52,240-€59,993	5,705	1.71	35.21
Total		56,986	3.24	68.27

Table 2 (2023): Average hourly and weekly subsidy levels for Income Assessed NCS claims with income <= €60k, by income decile for 2023 (using a snapshot as at 2023/04/24)

Decile	Income band for this decile for 2023	Number of children	Average hourly subsidy	Average weekly subsidy
1	0- €14,219	5,400	4.00	89.31
2	€14,220-€18,956	5,395	4.01	86.68
3	€18,957-€23,434	5,390	4.00	89.71
4	€23,435-€27,295	5,402	3.95	86.53
5	€27,296-€30,898	5,402	3.71	78.71
6	€30,899-€35,391	5,398	3.42	72.08
7	€35,391-€40,439	5,397	3.07	64.76
8	€40,440-€45,871	5,398	2.68	56.79
9	€45,872-€51,765	5,382	2.26	48.77
10	€51,766-€60,000	5,400	1.74	38.58
Total		53,964	3.28	71.19

Table 3 (2022): Average hourly and weekly subsidy levels for Income Assessed NCS claims with income <= €60k, by income decile for 2022 (using a snapshot as at 2022/04/25)

Decile	Income band for this decile for 2022	Number of children	Average hourly subsidy	Average weekly subsidy
1	0- €14,443	4,206	4.05	91.77
2	€14,444-€19,255	4,207	4.05	88.99
3	€19,256-€24,163	4,211	4.06	94.68
4	€24,164-€28,176	4,205	3.93	86.63
5	€28,177-€31,904	4,207	3.54	77.30
6	€31,905-€36,270	4,202	3.09	67.17
7	€36,271-€41,145	4,209	2.58	56.61
8	€41,146-€46,127	4,210	2.04	46.39
9	€46,128-€51,816	4,207	1.44	33.65
10	€51,817-€60,000	4,206	0.73	18.29
Total		42,067	2.95	66.15

Table 4 (2021): Average hourly and weekly subsidy levels for Income Assessed NCS claims with income <= €60k, by income decile for 2021 (using a snapshot as at 2021/04/26)

Decile	Income band for this decile for 2021	Number of children	Average hourly subsidy	Average weekly subsidy
1	0- €13,699	2,881	4.07	95.82
2	€13,700-€18,740	2,883	4.09	94.05
3	€18,741-€23,608	2,879	4.08	94.14
4	€23,609-€27,868	2,882	3.98	89.11
5	€27,869-€32,137	2,877	3.57	79.83
6	€32,138-€36,806	2,880	3.08	70.01
7	€36,807-€41,690	2,879	2.55	59.09
8	€41,691-€46,590	2,882	2.01	47.94
9	€46,591-€52,368	2,881	1.41	34.70
10	€52,369-€59,992	2,882	0.72	19.51
Total		28,802	2.96	68.42

Table 5 (2020): Average hourly and weekly subsidy levels for Income Assessed NCS claims with income <= €60k, by income decile for 2020 (using April 2020 claims)

Decile	Income band for this decile for 2020	Number of children	Average hourly subsidy	Average weekly subsidy
1	0- €15,170	1,239	4.12	97.54
2	€15,171-€22,084	1,238	4.14	100.47
3	€22,085-€27,726	1,239	4.05	97.09
4	€27,727-€32,601	1,239	3.58	82.67
5	€32,602-€36,903	1,240	3.07	72.45
6	€36,904-€41,367	1,239	2.59	60.91
7	€41,368-€45,567	1,236	2.11	52.65
8	€45,568-€49,518	1,241	1.64	41.04
9	€49,519-€54,208	1,240	1.17	30.82
10	€54,209-€59,987	1,234	0.63	17.91
Total		12,385	2.71	65.36

Income Assessed NCS claims are defined as claims that were eligible for payment following submission of attendance returns by the service provider and parental confirmation, where applicable), with an application type of “Income Assessed”. Some applications may have type “Income Assessed”, but the actual award may be at universal subsidy rates if the reckonable income is too high. Therefore, in the tables above, claims with incomes > €60,000 have been excluded.

Please note that children may have more than one application in any calendar year and the applications may have different income levels so children may appear in more than one income category in the same calendar year.

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

Based on the data used in response to Parliamentary Question No. 238 of 1 May 2024, the estimated cost to employers of raising the current ERO minimum pay rates by 1 cent per hour is approximately €350,000 per year, inclusive of employer-related costs (PRSI, etc).

The estimated cost breakdown by role is approximately;

Educator, €175,000

Lead Educator, €55,000

Graduate Lead Educators, €76,000

Managers, €22,000

Graduate Managers, €22,000

In relation to this estimate, the following should also be noted:

• The cost estimates do not attempt to account for the potential cost implications for the wages of staff who are currently earning more than 1 cent per hour above current ERO minimum rates, therefore the 1 cent cost cannot be proportional extrapolated to estimate other additional costs e.g. a 2 cent cost would not be simply calculated by doubling the €350,000 1 cent cost.
• The cost estimates are based on staff who had an hourly wage recorded in service providers’ submissions for Core Funding based on role titles in Core Funding, in the estimates above the Core Funding data has been extrapolated to provide an estimate for all staff working in the sector in said roles.
• Current wage data was provided by service providers and may contain inaccuracies, but the has been adjusted upward on the assumption that all staff should earn at least the legally-binding minimum rates of pay specified in the EROs. The cost estimates are for the additional cost to employers of bringing staff from their current wage or the minimum pay rates set out in the EROs, whichever is higher, up to a pay rate of 1 cent more per hour for each of the minimum pay rates in the EROs.
• The cost estimates only relate to staff and managers covered by the current EROs, i.e. the estimates exclude the cost of ancillary staff.

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

Ensuring high-quality early learning and childcare is affordable and accessible is a policy priority for my Department. This is reflected in a range of national policies and strategies.

Project Ireland 2040 and the National Development Plan 2021-2030 recognise early learning and childcare and school age childcare as a critical part of the nation’s infrastructure, both as a core element of the education system for children and a prerequisite of job creation and labour market participation for parents. €89 million has been allocated to this sector under the revised NDP over the period 2023-2026.

First 5: A Whole of Government Strategy for Babies, Young Children and their Families (2019-2028) includes as strategic actions to “maintain and extend the supply of high-quality publicly subsidised early learning and care and school-age childcare to best serve the developmental needs of babies and young children, ensuring that it also reflects the needs and preferences of parents and families”.

The recently published First 5 Implementation Plan 2023-2025 describes the steps that will be taken in the over the next three years under this strategic action. It sets a target of 60,000 ELC places for children under 3 by 2028, in line with the Revised Barcelona Targets.

My Department is progressing a range of actions to ensure the supply of early learning and childcare meets demand, with work in this area led by a new Supply Management Unit that I established earlier this year.

The Unit will also oversee the administration of new capital investment under the National Development Plan, with two strands of funding rolling out this year and next under the Building Blocks Capacity Grant.

The primary focus of the Building Blocks Grant Schemes is to increase capacity in the 1-3 year old, pre-ECCE, age range for full day or part-time care. This will be delivered through funding for expansion and extension of existing services, with prioritisation for services in areas of high demand versus supply.

The Building Blocks Expansion Grant Scheme offers funding for internal reconfiguration projects valued at between €50,000 and €100,000 that increase capacity. Applications for the Expansion Grant closed on 3rd April and the outcome of the appraisal process will be made known shortly.

The Building Blocks Extension scheme will offer funding for larger scale projects valued between €100,000 and €500,000 to enable existing services to build new capacity on their current site or nearby. The application process for the Extension Grant scheme will open in the coming months. This scheme will make available funding for larger-scale projects existing services are in a position to extend. This scheme will also focus on creating additional places for younger children in the 1-3 age category.

As well as these schemes, my Department is engaging with the Department of Housing, Local Government and Heritage to progress the updating of the 2001 Planning Guidelines for Local Authorities on Early Learning and Childcare Settings.

In addition, Core Funding, which began 2022, has proven to be effective in expanding capacity. Year 2 of the scheme provided for capacity growth of 3%, which has materialised and for Year 3 of the scheme, further funding will be directed towards a further 3% increase in capacity in the sector.

Also, under the National Action Plan for Childminding, I have committed to opening up access to the National Childcare Scheme to parents who use childminders following the extension of regulation to childminders this autumn.