Dáil Éireann Debate, Tuesday - 18 April 2023
1236. Deputy Cian O'Callaghan asked the Minister for Children, Equality, Disability, Integration and Youth if he plans to increase the rate of the after-school childcare scheme given the ongoing cost-of-living crisis; and if he will make a statement on the matter. [17070/23]
View answerThe After-School Childcare Scheme was closed to new entrants in February 2020. It was replaced by the National Childcare Scheme and I will speak to the issues in this context.
On 15 September, I launched Together for Better, the new funding model for early learning and childcare and school aged childcare. This new funding model supports the delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families as well as stability and sustainability for providers. Together for Better brings together three major programmes, the Early Childhood Care and Education (ECCE) programme, including the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS) and the new Core Funding scheme.
Core Funding, which began in September 2022, is the new funding stream worth €259 million in full year costs to start the partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.
Core Funding allows for substantial increases in the total cost base for the sector, related both to pay and non-pay costs, without additional costs being passed on to parents. Core Funding introduces fee management, which in year one is a fee freeze, where providers cannot increase the fees charged from last September 2021. This ensures that parents’ costs do not increase and that the increased National Childcare Scheme subsidies are fully felt by parents. 94% of services have now signed up to Core Funding.
The NCS provides financial support to help parents meet the cost of childcare. It is available to families with children aged between 24 weeks and 15 years who are attending any participating Tusla registered childcare service, including any Tusla registered school-age childcare services, and any Tusla registered childminder.
The scheme has been substantially expanded in recent months. Arising from Budget 22, eligibility for the universal subsidy has been extended from under 3 (or pre-ECCE) to all children under 15 years old from September 2022. The income assessed subsidy was already available for that cohort.
Under Budget 23, and with effect from January 2023, the universal subsidy was increased from 50c to €1.40. Income assessed applicants also saw increases depending on their current income level.
Budget 2023 allocates €1.025 billion to early learning and childcare – a clear demonstration from Government of the value of the sector. Together for Better aims to transform the sector and I committed to working with Partner Services delivering early learning and childcare for the public good.
