Dáil Éireann Debate, Wednesday - 5 July 2023
165. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth if he is aware that the extra social protection payments designed to combat the cost-of-living crisis are adversely affecting the subsidies received by many families under the national childcare scheme; and if he will make a statement on the matter. [32944/23]
View answer175. Deputy Kathleen Funchion asked the Minister for Children, Equality, Disability, Integration and Youth if he is aware that a significant number of families in receipt of a subsidy under the national childcare scheme have had their subsidy affected due to the extra social protection payments designed to combat the cost-of-living crisis; and if he will make a statement on the matter. [32943/23]
View answerI propose to take Questions Nos. 165 and 175 together.
The National Childcare Scheme (NCS) provides financial support to help parents meet the cost of early learning and childcare and to support better outcomes for children. There are two types of supports available to families with children aged between 24 weeks and 15 years of age under the National Childcare Scheme:
• Universal Subsidies are available to all families with children under 15 years old. This subsidy is not means tested and provides €1.40 per hour towards the cost of a registered childcare place for a maximum of 45 hours per week.
• Income Assessed Subsidies are available to families with children aged between 24 weeks and 15 years. This subsidy is means tested and is calculated based on individual circumstances. Rates vary depending on the level of family income, a child’s age and educational stage, and the number of children in the family.
Parents cannot get the Universal Subsidy and an income-assessed subsidy at the same time. However, they can choose which subsidy is of greatest benefit.
Reckonable income must be less than €60,000 per year to qualify for an income-assessed subsidy. Families are entitled to the maximum subsidy rates if their reckonable income is €26,000 or less.
If parents are applying for an income-assessed subsidy, the rate they qualify for depends on their reckonable income.
Reckonable income is the total amount of net family income. This is income from all sources (including most social welfare payments), after tax, PRSI and USC have been deducted.
However, some social welfare payments and other allowable items or allowable deductions are excluded from reckonable income under the NCS.
When the NCS assesses income, it does not take into account allowable deductions or allowable items. Reckonable income is reduced by the amount of the allowable deductions. Allowable deductions include:
• A multiple child discount of €4,300 if families have 2 children under 15
• A multiple child discount of €8,600 if families have 3 or more children under 15
• Pension contributions, within the limit allowed by Revenue
• Maintenance payments made to a child or a former spouse
The following social welfare payments are also included:
• Aftercare Allowance
• Back to Education Allowance
• Back to School Clothing and Footwear Allowance
• Back to Work Enterprise Allowance
• Back to Work Family Dividend
• Blind Welfare Allowance
• Caranua services support
• Carer’s Support Grant
• Constant Attendance Allowance
• DE Third Level Bursary Scheme
• Diet Supplement
• Domiciliary Care Allowance
• Exceptional Needs Payments
• FET Training Allowance
• Foster Care Allowance
• Guardian’s Payment
• Humanitarian Assistance Scheme
• Mobility Allowance
• Personal Reader Grant
• Rent Supplement
• Short-Term Enterprise Allowance
• Springboard+
• Student Assistance Fund
• Student grant (SUSI)
• VTOS Training Allowance
• Youthreach Allowance
My Department funds a national network of County Childcare Committees (CCCs) who provide support and advice to parents and childcare providers. I would encourage any family to contact their local CCC regarding any issues around childcare, and to ascertain which subsidy type would be most beneficial for them. The contact details for the CCCs can be found on www.myccc.gov.ie.
