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05/29/2018 12:00:00 AM


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Child Care Costs

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Child Care Costs

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Minister for Children and Youth Affairs (Deputy Katherine Zappone)

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Minister for Children and Youth Affairs (Deputy Katherine Zappone)

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Katherine Zappone

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Snippet Contents:

I assume that the question relates to the new Affordable Childcare Scheme (ACS) that is currently being developed, rather than the universal subsidy that is currently available. The universal element of the ACS will match the existing provision and provide a €0.50 per hour subsidy for children aged 6-36 months, for up to a maximum of 40 hours per week. Only families who use the full 40 hours of childcare or more per week will receive the full €20 per week subsidy; families using part-time childcare will receive a pro rata subsidy.
Based on DCYA projections that were used in the Regulatory Impact Analysis published last December, the expected cost of the universal element of the ACS is approximately €15m per year.
The following table sets out the estimated cost of increasing the universal subsidy rate of €0.50 per hour in increments of €20 per month, i.e. €5 per week or 12.5 cent per hour, starting from a baseline of a maximum universal subsidy of €80 per month or €20 per week. The figures in the table assume the targeted subsidy rates within the Affordable Childcare Scheme would adjust to reflect the changes in the universal subsidy-rates, and the figures therefore indicate the additional cost for the scheme as a whole (both universal and targeted). The figures also follow assumptions used in the published Regulatory Impact Analysis as to the impact of changes in subsidy-rates on the demand for childcare and the number of beneficiaries of the ACS.
The assumptions on which the table is based are subject to change as new data becomes available.
Maximum universal subsidy per month Maximum universal subsidy per week (40 hours)Estimated additional cost of ACS
€80€20
€100€25€6m
€120€30€11m
€140€35€17m
€160€40€23m
€180€45€30m
€200€50€36m
€220€55€42m
€240€60€49m
€260€65€55m
€280€70€62m
€300€75€69m
€320€80€76m
€340€85€83m
€360€90€90m
€380€95€98m
€400€100€105m
€420€105€113m
€440€110€120m
€460€115€128m
€480€120€136m
€500€125€144m
€520€130€152m
€540€135€161m
€560€140€169m
€580€145€178m
€600€150€186m