Dáil Éireann Debate, Tuesday - 22 October 2024
659. Deputy Niamh Smyth asked the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €2.50 per hour; and if he will make a statement on the matter. [43277/24]
Amharc ar fhreagra660. Deputy Niamh Smyth asked the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €3 per hour; and if he will make a statement on the matter. [43278/24]
Amharc ar fhreagra661. Deputy Niamh Smyth asked the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €3.20 per hour; and if he will make a statement on the matter. [43279/24]
Amharc ar fhreagra662. Deputy Niamh Smyth asked the Minister for Children, Equality, Disability, Integration and Youth to provide a breakdown of the full-year cost of increasing the NCS to €3.50/hour; and if he will make a statement on the matter. [43280/24]
Amharc ar fhreagraI propose to take Questions Nos. 659 to 662, inclusive, together.
The Deputy has separately requested a breakdown of the full-year cost of increasing the National Childcare Scheme (NCS) subsidy to €2.50/hour, €3.00/hour, €3.20/hour and €3.50/hour. Due to the similarity of these PQs it is proposed that they be taken together.
There are two types of subsidies available under the NCS.
• A universal subsidy which is available to all families with children under 15 years old. This subsidy is not means tested and provides €2.14 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 will be calculated based on individual circumstances. The rate will vary depending on the level of family income, child age and educational stage, and the number of children in a family.
It is assumed that the Deputy is requesting increases to the NCS universal subsidy as they income assessed subsidy is not a fixed hourly amount.
Officials in my Department used the ESRI SWITCH model to estimate the quantum of each change and then applied them to the Departments baseline cost of the NCS. The results are given in the below table:
|
Full year cost of change |
|
|
Baseline (€2.14) |
0 |
|
€2.50 |
€58.52m |
|
€3.00 |
€137.17m |
|
€3.20 |
€168.40m |
|
€3.50 |
€215.11m |
The figures above are calculated using estimates, and as such a number of caveats apply. These costing are on the basis of a static system; that is, the model assumes that the level of usage of eligible ELC does not increase or decrease but remains static. Any changes to subsidies may create a change in behaviour of families, for example, return to/increased labour force participation and use of formal ELC for the first time.
In addition, a number of enhancements were made to the NCS in September 2024:
1. Increase in universal subsidy from €1.40 to €2.14.
2. Extension of NCS to families availing of childminders
3. Increase in NCS sponsor subsidy to €5.30 per hour for all children over the age of 1.
The estimates above factor in these changes, however, the impact of these changes are yet to be determined and carry a risk of altering the above costings.
