Monday 16 July 2007

Minister for Children announces new €153 million childcare grant scheme

Government on target to deliver over €1 billion in childcare investment by 2010

The Minister for Children, Brendan Smith TD, today announced details of the new Community Childcare Subvention Scheme under the National Childcare Investment Programme (NCIP). ‘The Scheme will operate during 2008-2010 and will subvent community-based not-for-profit childcare services to enable them to provide quality childcare services at reduced rates to disadvantaged parents’ stated Minister Smith.

The introduction of the new Subvention Scheme honours the Government’s commitment to bring a new grant scheme into effect in 2008, when the Equal Opportunities Childcare Programme (EOCP) (2000-2006) support scheme comes to an end in December 2007. It is also in line with commitments agreed in the new Programme for Government.

The Subvention Scheme is being allocated funding in excess of €153 million over 3 years. Minister Smith said ‘this is a significant increase in the funding available under the current EU co-funded EOCP support scheme and represents an increase of approximately 16% in the funding provision in 2008 compared to 2007’. This substantial increase in funding under the new NCIP Scheme demonstrates the Government's continued commitment to childcare and measures targeted at tackling social inclusion, a commitment that has been reiterated in the new Programme for Government. It also reflects the success of the EOCP and NCIP to date.

‘The details of the Community Childcare Subvention Scheme are being made available immediately to enable applications for the Scheme to be processed and approved in time for its commencement on 1 January 2008’ added the Minister. There will be a transitional period at the start of the Scheme in 2008, during which childcare services which are already being supported through grant funding will continue to be supported at their existing level. This is being done to ensure that services which are currently supported can adjust to the new Scheme and to ensure continuity of services.

‘During 2000-2010, over €1 billion is being invested in childcare under the EOCP and NCIP. Of the €575 million allocated to the NCIP during 2006-2010, €358 million is being invested in developing childcare projects through capital expenditure. This is in addition to an allocation of €499 million under the EOCP which will continue to the end of 2007. To date, capital funding amounting to €132 million has been allocated to childcare projects under the NCIP. This funding, when fully drawn down, will create some 20,000 new childcare places and support a further 5,000 places. These places are additional to the 34,000 new childcare places and 25,000 existing places supported under the EOCP. By the end of December 2006, almost 36,000 of the new places were operational’ declared the Minister.

The key objectives of the NCIP, which include supporting families to break the cycle of poverty and disadvantage, will be supported by the Community Childcare Subvention Scheme, which will focus on disadvantaged parents and their children, targeting resources where they are most needed. The Scheme is expected to be more effective in targeting resources to services with high numbers of disadvantaged parents.

In line with the recommendations of the recently completed Value for Money Review of the EOCP, community childcare services will receive subventions to enable them to provide reduced childcare fees to parents who are in receipt of social welfare payments or are engaged in education, training or work experience programmes where an underlying entitlement to a social welfare payment is established. They will also receive subsidies for parents who are in receipt of Family Income Supplement (FIS). Subventions will not be available in respect of parents who are not in receipt of these payments. However, due to the subsidisation of childcare costs in the community not-for-profit sector through capital grant aid and other State supports, all parents or guardians using these services will continue to benefit from quality childcare at a lower cost than is generally available.

Subventions for full-day care places will range from €80 to €30 (€110 to €60 for a child under 1 year) per week, with pro rata subventions for shorter day care services. The operation of the scheme and the subventions provided will be subject to on-going monitoring and review to ensure optimum outcomes for parents. In some cases, parents may be entitled to Family Income Supplement (FIS) but are not currently claiming it. It is hoped that they will be encouraged to apply for FIS and benefit from both the new Community Childcare Subvention Scheme and the additional benefits available from FIS.

‘In addition to the significant investment in both the EOCP and NCIP, it is also important to acknowledge the very substantial Government investment in direct financial supports to parents since 1997. The rate of Child Benefit has increased dramatically in these 10 years, from just IR£30 per month in 1997 (or €38.10), to €160 per month in 2007. In addition, the €1,000 per annum Early Childcare Supplement was introduced in 2006 as a further assistance to parents in caring for children aged under 6 years. Together, these payments will amount to €2.7 billion in 2007’ concluded Minister Smith.

Press contact:
Anne O’Donnell
Head of Communications, Office of the Minister for Children
01 6743204 / 086 3837320

NOTES FOR EDITORS

Applications for Community Childcare Subvention
Funding under the Community Childcare Subvention Scheme will commence with effect from 1 January 2008. However, as there is expected to be a large number of applicants, childcare services which are currently in receipt of Grant support will be contacted directly by the Office of the Minister for Children (OMC) and/or Pobal to assist them with their applications. Community-based childcare providers who are not in receipt of Grant support and who wish to apply for the new Subvention Scheme, can do so by contacting their local City or County Childcare Committee. Further information can also be obtained by contacting either Pobal, Holbrook House, Holles Street, Dublin 2 (telephone: 01 5239017 ; fax: 01 6610411; www.Pobal.ie), or the Childcare Directorate, Office of the Minister for Children, Hawkin's House, Dublin 2 (telephone: 01 6353073; fax: 01 6354045; www.omc.gov.ie).

Other Recommendations of the Value for Money Review

As referred to above, the new NCIP Community Childcare Subvention Scheme is being introduced following a Value for Money (VfM) Review of the EOCP. With regard to the NCIP capital grant scheme, the VfM Review recommended that it should continue and that project management functions and costs should be included as a central component and condition of funding. These recommendations, and a series of other recommendations in the Review, are being implemented. The Community Childcare Subvention Scheme will be monitored closely during 2008-2010 and reviewed if necessary to ensure that it is effective in targeting resources to disadvantaged parents and the services which support them. This process will also inform the OMC in planning for any future childcare programmes post 2010.