Ireland's first-ever statutory entitlement for financial childcare support

Parents can apply online from Wednesday, November 20, 2019, for the National Childcare Scheme, Ireland's first-ever statutory entitlement to financial support for families towards the cost of childcare.

The National Childcare Scheme is a landmark new Scheme for Ireland.

It is the first ever statutory entitlement to financial support for childcare.It establishes an equitable and progressive system of universal and income-related subsidies for children up to the age of 15.It also provides an innovative and user-friendly online application process to access those subsidies.

The National Childcare Scheme aims to improve children's outcomes, support lifelong learning, make work pay, reduce child poverty and tangibly reduce the cost of quality childcare for thousands of families across Ireland.

Minister, Dr. Katherine Zappone, T.D said that "without the National Childcare Scheme, we simply cannot move forward with delivering the quality, accessible, affordable childcare that Ireland needs and deserves. The Scheme provides a flexible, future-focused and sustainable platform to invest in quality Early Learning and Care and School Age Childcare. It is our commitment to children. It is our investment in families."

The scheme provides subsidies to help parents meet the cost of quality early learning and care and school-age childcare. It will replace all previous targeted childcare support programmes with a single, streamlined and user-friendly scheme.

Universal subsidies will be available to all families with children under 3 years, or families with children over 3 years who have not yet qualified for the free preschool (ECCE) programme. The subsidy is not means-tested and provides up to €1,040 a year off the cost of a Tusla-registered childcare place, regardless of income.

A landmark new scheme for Ireland, it has been developed as the country's pathway to truly accessible, affordable, quality childcare. It establishes an equitable and progressive system of universal and income-related subsidies for children up to the age of 15.

The scheme also provides an innovative and user-friendly online application process to access those subsidies.

Through the National Childcare Scheme, the government is committed to changing Ireland’s childcare system from one of the most expensive in the world to one of the very best.

The National Childcare Scheme will increase the number of families who can access financial support. Many families will, for the first time, be entitled to subsidies which reduce their childcare costs significantly.

Income-assess subsidies up to age 15

Income-assessed subsidies will be available to families with children aged between 6 months and 15 years. They are means-tested and will be calculated based on a family’s individual circumstances. The subsidy rate will vary depending on the level of reckonable family income, a child’s age and educational stage.

The subsidy can be used towards the cost of a Tusla-registered childcare place for up to a maximum of 40 hours per week where parents are working, studying or training and a maximum of 15 hours per week where parents are not working, studying or training.

Threshold for Income-assessed subsidies

The threshold for applying for Income-assessed subsidies is €60,000 reckonable income per year. Reckonable income is calculated by taking net family income (income after tax, PRSI and USC) and deducting any allowable items under the Scheme.

Through all of the above, the National Childcare Scheme aims to improve children's outcomes, support lifelong learning, make work pay, reduce child poverty and tangibly reduce the cost of quality childcare for thousands of families across Ireland.

The National Childcare Scheme allows Ireland to move forward with delivering the quality, accessible, affordable childcare that Ireland needs and deserves. The Scheme provides a flexible, future-focused and sustainable platform to invest in quality Early Learning and Care and School Age Childcare. It is Ireland's commitment to children. It is part of Ireland's commitment to children and investment in families.

• Online applications for the National Childcare Scheme will open on Wednesday, November 20, 2019.
• To apply for the Scheme online the applicant will need to have a verified MyGovID.
• Further information and a range of resources for families who wish to apply is available on the website Here.

Types of Subsidies

There are two types of subsidies available under the National Childcare Scheme:

Universal Subsidies are available to all families with children under 3 years old. They are also available to families with children over 3 years who have not yet qualified for the free preschool programme (ECCE). This subsidy is not means tested and provides 50c per hour towards the cost of a registered childcare place for a maximum of 40 hours per week.

What you will need to apply online:

• A verified MyGovID account
• The date of birth and Personal Public Service Number (PPSN) for each of the children you are applying for

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 your individual circumstances. Your rate will vary depending on your level of family income, your child’s age and educational stage, and the number of children in your family.

If you (and your partner, if you have one) are working, studying or training, the maximum number of subsidised hours available per week are 40.

If you (or your partner, if you have one) are not working, studying or training, the maximum number of subsidised hours available per week are 15.

Reckonable Income

To apply for an Income Assessed subsidy your reckonable family income must be less than €60,000 per year.

Reckonable income is calculated by taking your net family income and deducting any allowable items under the Scheme, such as the Multiple Child Discount.

In other words it is the family income, including social protection payments, after tax, PRSI, USC, and any allowable items under the Scheme have been deducted.

To calculate your reckonable income the following items can be deducted from your net income:

• A Multiple Child Discount of €4,300 for families with 2 children under the age of 15
• A Multiple Child Discount of €8,600 for families with 3 or more children under 15
• Pension contributions, up to the limit allowed by the Revenue Commissioners as a deduction from tax.

If you are applying for an Income Assessed subsidy your income assessment will, in general, be based on your income from the previous tax year. However, you can choose to have your income from the current year assessed if you prefer. You may choose this option if your circumstances have changed from the previous tax year, and you believe that your income from the current year will be significantly less than your income from the previous year.

There are two ways your income can be assessed:

1) You can choose to have your income automatically assessed using information available from the most recent year from the Revenue Commissioners and the Department of Employment Affairs and Social Protection. This is called ‘Fast Track’. If you choose to Fast Track your assessment, the Scheme’s IT system automatically retrieves the information from Revenue and Social Protection using your Personal Public Service (PPS) number (and your partner’s, if you have one). This is typically the fastest way to have your income assessed and your application processed, and you don’t need to provide any supporting documents when applying.

2) You can choose to provide supporting documents, such as payslips or Social Protection declarations, which show your income and have them reviewed and assessed by an officer of the Scheme Administrator. These documents provide the same information that would otherwise be provided by Revenue and Social Protection via the Scheme’s IT system under the Fast Track option. All of the supporting documents that you need can be found in the Application Form Guide. They can be uploaded with your application either by scanning them onto your computer or by taking a photograph. 

If you choose to have your income assessed on the current year, you will be required to manually provide supporting documents. Applications which are manually reviewed and assessed will take longer to process than Fast Track assessments.

How will the subsidies work?

The National Childcare Scheme is designed to be flexible, recognising that childcare needs are different for each family. The system has been designed to respond to these needs by providing subsidies which can be applied to the amount of care agreed between parents and providers.

Parents and providers will continue to work together as they currently do, agreeing the amount of care based on a combination of what a parent needs and what a provider can reasonably offer.

Providers will continue to set their own fees, sessions and decide their own admissions policies. The subsidy can then be applied to the care agreed, up to the maximum amount available under Scheme limits.

You can use your subsidy with any childcare provider who is participating in the Scheme. Your subsidy will be paid directly to your chosen childcare provider once you have made arrangements with them. To find childcare services in your area who are participating in the Scheme you can use the Childcare Search.

After your application has been approved, you will receive a unique code, called a CHICK (Childcare Identifier Code Key). The CHICK, along with your child’s name and date of birth, are all your provider needs to register your child on the National Childcare Scheme. After you have confirmed the details registered by your provider, the Department of Children and Youth Affairs will pay the subsidy to them on your behalf. Your provider will then subtract your subsidy from your childcare bill, reducing your childcare costs.

For more information, see: https://ncs.gov.ie/en/