I am very pleased to meet with the Committee this morning to provide an
update on the measures, which are being put in place to make childcare more
affordable for families from September and to outline the progress that has
been made since we last met on 8 February in developing the Affordable
Childcare Scheme (ACS).
In particular, I would like to update you on some of the issues raised by
the Committee in Pre-Legislative Scrutiny.
Update on measures to make childcare more affordable
On 11 April, I announced a range of measures, which will make childcare
more affordable for families from September.
Deputies will be aware that these measures include:
§ universal subsidies, of up to €1,040 per annum per child, which will
be available for all children aged between 6 and 36 months; and
§ targeted subsidies, of up to €7,500 per annum per child, which will
be delivered to those families who need it most.
It is these targeted subsidies that will open up jobs, training and
education for parents who want to lift their families out of poverty.
As a result of these measures, up to 70,000 children will benefit from
extra childcare support this September – this will be an important moment.
This is the first big practical step to changing one of the most expensive
childcare systems in the world into one of the best.
By addressing the affordability issue we will ease the burden on many
parents for whom childcare costs have become a second rent or mortgage.
This first big step to changing Irish childcare forever is now just eight
weeks away.
To ensure uptake by families and by childcare providers, a public
information campaign has been underway since mid-May:
§ Information packs were sent to all 4,400 registered childcare
providers;
§ Information events, attended by more than 1,000 childcare providers,
were held at eight locations throughout the country;
§ A dedicated website was launched (www.affordablechildcare.ie)
receiving over 170,000 page views to date;
§ A digital campaign on social media and on websites popular with
parents has been shared tens of thousands of times; and
§ A national and local radio advertising campaign took place in June.
I also secured a budget of €3.5m to support childcare providers who sign up
to the schemes and, in particular, to recognise their non-contact time
responsibilities.
The value of this payment will be equivalent to 7 days of the total value
of registrations under CCS and TEC schemes. This is in addition to the
€14.5m non-contact payment secured in Budget 2017.
Contracting with childcare providers is now underway and registrations of
children for these subsidies will go live from 21 August.
Update on Affordable Childcare Scheme
Significant progress continues to be made on the development of the ACS. A
Project Board, chaired by my Department, meets every three weeks to oversee
this development.
Legislation
Work on the drafting of legislation is currently in progress. Legal advice
has been sought on a number of issues and several policy issues – including
issues raised by the Committee at Pre-Legislative Scrutiny – have received
further consideration.
For example, we are re-examining how the ACS budget cap can be implemented
and are in discussions with the Department of Public Expenditure and
Reform. This follows legal advice on the issue.
We are also engaging with Tusla to reach agreement on the threshold that
will be applied to Tusla referrals to ACS.
We have given much consideration to the range of issues raised by the
Committee on the Income Assessment Model, such as the treatment of Family
Income Supplement (FIS), rental income and housing costs.
We have also sought the views of officials with significant experience of
means-testing (i.e. from Departments of Education and Skills and Social
Protection, Health Services Executive) who have reviewed the Income
Assessment Model.
I can assure the Committee that I will continue to give these matters
careful consideration and I will revert to the Committee with our
conclusions. At the request of my Department, the Department of Social
Protection is currently carrying out analysis of potential disincentive
effects created by the interaction of ACS and FIS, and will make
recommendations to my Department shortly on whether FIS should be made
deductible from the ACS income-assessment.
We will await the advice of the Department of Social Protection before
making any decision on the issue.
The Committee also asked that I prioritise review of eligibility conditions
for childminders, provided minimum standards are met.
Just as with centre-based care, quality assurance of childminders must be
an absolute prerequisite for participation in the ACS. My Department has
commenced talks with Childminding Ireland in recent months to explore a
number of options around how quality can be assured within the childminding
sector.
If sufficient alternative standards are not in place, it will remain the
case that only Tusla-registered childminders will be able to participate in
the ACS.
It is anticipated that a draft Bill will be brought to Government by end
Quarter 3, with a view to enactment in the Autumn.
ICT Approval Process
The Architectural Design for the ICT Platform to support the ACS has been
completed. A request to commence development of this infrastructure to
support the ACS was recently approved by the Office of the Government Chief
Information Office (OGCIO).
This represents a first milestone in the technical development of the ICT
system. The development of this infrastructure will commence in early
August.
The main development of the ACS project is subject to the OGCIO peer review
process. The peer review group, which was established in early May 2017,
are currently reviewing the ACS Business Case.
The next stage of this process is the presentation of the ‘Request for
Tender (RFT)’ for the procurement of the ICT Development. To inform the
RFT, the Business Requirements for the ACS have already been agreed as has
the procurement approach.
Work is now underway to finalise the Functional Requirements Specification.
It is anticipated to the RFT will be presented to the peer review group by
end Quarter 3.
Other preparatory work
Other preparatory work underway includes the development of an ACS
communications strategy; the development of a governance and compliance
framework; the development of standard operating procedures; and the
development of a data protection strategy.
A recently completed Privacy Impact Assessment on the ACS will be a key
input to this strategy. My officials have also held a constructive meeting
with the Deputy Data Protection Commissioner to advance this work.
Data sharing arrangements with the Office of the Revenue Commissioners and
the Department of Social Protection have also been finalised and plans for
data hosting are being agreed with the Department of Social Protection.
Launch Planning
Major consideration is also being given for the phase when the ACS is
developed and tested and ready for launch. It is important to note that the
operational launch of the ACS will require a time period for applications
to be submitted, and processed, before opening up to registrations with
childcare providers and parents receiving their subsidies.
This is due to the fact that the launch is expected to bring in over
100,000 applications (some of which may be ineligible for an ACS subsidy)
that require to be processed equitably before parents can begin to register
their children with childcare providers.
While it is hoped a large proportion of applications will go through the
automated system, some will require some level of case management due to
family circumstances, and quality assurance.
Planning for the launch of the ACS is underway and initial indications
suggest that a period of 12-16 weeks will be required for the application
period before registrations can begin (and subsidies provided). Once the
initial launch period is completed, applications will be processed on a
‘rolling basis’.
Timeline
With the above factors in mind, the Project Board has advised me that they
are not in a position, at this point in time, to guarantee a timeline for
delivery of the ACS. The RFT stage of the peer review process represents,
to some extent, the biggest milestone with the ICT Development, and as such
drives the beginning of the timeline for the full project delivery.
The Project Board will continue to meet every three weeks to progress the
ACS development as efficiently and effectively as possible.
I will be very happy to answer questions, and I welcome colleagues from my
Department who will join me in responding to specific queries.