Are families in for a hike in childcare payments?
THERE was widespread confusion in Government yesterday after a backbench TD appeared to reveal details around new childcare measures due to be announced in the forthcoming Budget.
Fine Gael TD and Children’s Committee chair Alan Farrell said a new universal childcare payment to be introduced from next month would rise from €80 per month to €95 in the October Budget – and that €150million of the available fiscal space would now go towards childcare measures.
However, following his statement, Government departments appeared to contradict this – but struggled to explain what the new budgetary measures entailed.
Speaking to reporters at a ‘picnic’ event in Dublin’s Merrion Square – also attended by Fine Gael TD Josepha Madigan – to remind parents that the childcare subsidies will kick in from next month onwards, Mr Farrell said: ‘The childcare budget has in fact almost been doubled in the last two budgets.’
He said it ‘has gone from €250million up to €466million’, and ‘will in fact go up to over €620million from this coming Budget’ – with the latter increase amounting to more than €150million. He then doublechecked the figure and confirmed his understanding that the €150million he mentioned was ‘absolutely brand new’ money.
However, a Fine Gael spokesman moved to clarify his comments last night, and appeared to suggest the extra €150million was not brand new money – and had in fact been previously allocated for this purpose. The spokesman said the €150million was in fact the ‘full-year cost of affordable childcare measures, universal and targeted subsidies, as announced in Budget 2017 and being introduced in September 2017’.
The new affordable childcare scheme will see a universal support of €80 per week for all children aged between six months and three years. There will also be targeted childcare subsidies for lower-income families, offering up to €145 per week.
When asked if the universal payment would potentially increase in the next Budget from €80 to a higher figure, Mr Farrell said: ‘It is going up to €95. That is in the bump.’
Clarifying this, a Fine Gael spokesman said last night that the increase Mr Farrell mentioned in the universal scheme was in fact ‘in reference to the targeted scheme’. However, he struggled to explain how Mr Farrell’s mention of a payment being increased ‘to €95’ related to the targeted scheme.
The spokesman said: ‘The targeted measure to support lowincome families, which is subject to a means test, currently sees eligible families receiving subsidies of up to €95 per week. From September they may receive as much as €145 per week, at the highest level.’
It comes after Children’s Minister Katherine Zappone indicated last week she wanted to increase the amount of money given in both schemes over time as a ‘progressive move’.
A spokesman for the Department of Finance said: ‘The 2017 allocation for the Department of Children and Youth Affairs is €1,311million (€1.311billion).
‘This represents an increase of over €220million, or 20%, on 2016 expenditure. The increased allocation is funding a number of measures including in relation to Early Years Care and Education.’
‘Budget has almost been doubled’ ‘Progressive move’