Written answer
Childcare Services
The Minister said there are no plans to pay NCS subsidies directly to parents whose chosen provider is not participating. The Government favours supply-side funding to promote access, affordability and quality, while parents can use their CHICK code with multiple participating providers, including registered childminders.
488. Deputy Barry Ward asked the Minister for Children, Disability and Equality if consideration has been given to creating a system that would allow for parents to be paid the NCS subsidy directly in cases whereby their choice of preschool or childcare centre is not signed up to this scheme and therefore they cannot benefit from it and must pay the full cost of the fees. [66428/26]
Comment on this
The National Childcare Scheme (NCS) provides financial support to help families with their early learning and childcare costs. The NCS is a statutory scheme under the Childcare Support Act 2018. Section 15(1) of the Childcare Support Act specifies that the scheme administrator pays the financial support to an approved providers with whom the parent (or, in sponsored cases, the relevant statutory body) has an agreement for early learning and childcare services. Currently there is no consideration being given to legislative changes to the delivery structure of the NCS subsidies.
The NCS is designed to be flexible and acknowledges that childcare needs differ widely across different families. For this reason, NCS subsidies are awarded as an hourly rate for a maximum of 45 hours a week, and funding follows the child. Families who apply for the NCS in respect of their children will receive a CHICK code. Once a parent has a CHICK, it can be used in multiple providers, if appropriate. A parent could choose to use one provider in term, and another out of term, or different providers on specific days of the week, once they do not exceed the maximum 45 hours. The actual subsidy payment is based on the hours agreed between the parent and the provider and claimed on the NCS system.
Demand side measures (i.e. funding directly to parents) and supply side measures (i.e. funding directly to providers to assist in the meeting the cost of early learning and childcare provision and/or to reduce parents fees) were explored in the context of the development of the NCS.
The 2016 policy paper, which informed the subsequent development of the NCS, concluded that supply-side measures offer the State greater steering capacity in terms of ensuring equity of access and driving quality in early learning and childcare services. This is because well-designed supply-side measures offer the State several policy levers (e.g. subsidy levels linked to quality, conditions for provider participation, regulation of co-payments etc.) through which policy objectives can be pursued.
The emphasis on supply-side funding allows the Department to leverage quality of the sector and make progress towards a more publicly managed service, where policy levers can be used to support quality, affordability, availability, access, and sustainability.
In line with the requirements of the Child Care Act 1991 (Early Year Services) Regulations 2016, the Child Care Act 1991 (Early Year Services) (Registration of School Age Services) Regulations 2018 and the Child Care Act 1991 (Early Years Services) (Childminding Services) Regulations 2024, those wishing to operate an early years service that offers the NCS (whether a preschool, school age or childminding service) are required to register with Tusla in line with the relevant regulations. Additionally, since September 2024, the NCS has been open to Tusla-registered childminders who wish to participate in the scheme. Families availing of childminders who are participating in the NCS can claim a subsidy towards their costs.