Minister O’Gorman publishes the findings of a 12-Month Review of the National Childcare Scheme (NCS)

• Review reveals the National Childcare Scheme is having a positive impact on use of early learning and childcare, workforce participation and family finances.

Roderic O’Gorman, T.D., Minister for Children, Equality, Disability, Integration and Youth has today published the findings of a 12-Month Review of the National Childcare Scheme (NCS).

The Review, which was undertaken by independent consultants, looked at the experience of families accessing the NCS during the first year of operation as well as the experience of providers offering the Scheme. An analysis of application data, including processing times and NCS subsidies awarded was also undertaken, in addition to engagement with key stakeholders.

Findings from the Review point to a number of positives for families accessing the NCS, with large proportions of parents reporting that the Scheme had positively impacted their use of early learning childcare, their engagement in work or study and their family finances.

The report found that:

• Overall, 38% of families reported that half or more of their early learning and childcare costs were covered by the NCS.
• More than half (56%) reported that the Scheme meant they had more money to spend (with 11% reporting they had much more money to spend).
• Just over a quarter (26%) reported that they were using more early learning and childcare.
• Just over a quarter (28%) reported that they were working more (with 8% reporting they would not be in work without the NCS).

The Review also found that the majority of families applied online for support under the NCS, with 66% of these applications processed within one day and 29% processed within 2 to 10 days. Moreover, most families found the application process easier than expected.

Findings from the Review also identified some emerging issues with the Scheme that need to be addressed, including low awareness of the Scheme among parents, administrative issues experienced by providers and barriers for some families accessing supports under the Scheme, including through the NCS sponsorship arrangements.

In parallel with the publication of the 12 Month Review of the National Childcare Scheme, the Minster also published a Work-Study Test Evidence Review.

The findings from both Reviews have already informed enhancements to the National Childcare Scheme announced in Budget 2022, specifically:

• An extension to the NCS universal subsidy to all children under 15 from September 2022, benefitting up to 40,000 children.
• An end to the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours from spring 2022, benefitting an estimated 5,000 children from low income families.

In addition to this, an action plan has been developed by the Department of Children, Equality, Disability and Youth and Pobal (the NCS Administrator) that will respond to emerging issues with the Scheme.

Announcing the publication of the reports, Minister O’Gorman said:

ENDS

Overview of the NCS

The NCS is a national scheme of financial support for parents towards the cost of quality early learning and childcare. It launched in November 2019 and replaced the previous targeted schemes with a single, streamlined and user-friendly scheme.

By providing financial support towards the cost of early learning and childcare, the NCS aims to:

• improve outcomes for children and support lifelong learning
• reduce poverty
• facilitate labour market activation
• tangibly reduce the cost of early learning and childcare in Ireland for tens of thousands of families

The Scheme is administered by Pobal.

The NCS is structured around the two core subsidies.

• A universal subsidy for children from age 24 weeks until eligible for the Early Childhood Care and Education (ECCE) programme. The universal subsidy is not means-tested and is available to all qualifying families of any income level (note the universal subsidy will be extended to all children under 15 from September 2022, in line with Budget 2022).
• An income-assessed subsidy for children from age 24 weeks to 15 years. The level of subsidy payable is determined by the family’s reckonable income (i.e. gross income minus tax, PRSI and other deductibles, and minus any applicable multiple child discount) and age of the child.

The total number of hours’ worth of income-assessed subsidies available under the NCS depends on whether or not the parents are working or studying (work-study test). Where parents are not engaged in work or study, the NCS subsidises up to 20 hours per week. Where parents are engaged in work or study, the NCS subsidises up to 45 hours of per week. Hours spent in the ECCE programme or school are deducted from the entitlement and NCS subsidised hours ‘wrap-around’ pre-school or school (note the practice of deducting hours in pre-school or school from NCS subsidised hours in this way will be discontinued in Spring 2022, in line with Budget 2022).

The NCS also includes a sponsor referral programme to help ensure access to early learning and childcare support for vulnerable children.

12 Month Review of the NCS

As part of the monitoring, review and evaluation of the NCS, section 26 of the Childcare Support Act 2018 requires that a formal review of the NCS take place ‘after the expiration of 12 months from the date of the making of the first payment of financial support to an approved childcare services provider.’

Section 26 of the Act also states that ‘the Minister shall…make a report in writing to each House of the Oireachtas of his or her findings and conclusions resulting from the review.’

The purpose of the Review is to provide key data and information to support the future development of the NCS. The Review is intended to provide a basis for the Department of Children, Equality, Disability, Integration and Youth to consider how effectively the NCS is operating and whether it is meeting the policy objectives which are meaningfully measurable within the first year.

This Review was undertaken by Frontier Economics on behalf of the Department.

There will also be 3 year evaluation of the NCS, which will commence after November 2022.

Follow-up Actions on foot of the Review

On foot of the 12 Month Review of the NCS, the Department has identified a series of actions to increase awareness of the NCS and increase support for families in accessing the Scheme. These include:

• Rolling out a new awareness raising campaign for the Scheme in early 2022.
• Engaging with families who apply for the Scheme but choose not to take it up to establish the reasons for this choice.
• Engaging with the named sponsor bodies around referral pathways and criteria for sponsorship.
• Undertaking a rolling 6-month uptake reviews of sponsor arrangements.
• In the longer term, introducing a DEIS-type model for early learning and childcare.
• From 2022, discontinuing the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours (as announced in Budget 2022).
• Seeking to build the confidence of providers using the NCS and reducing the administrative burden on providers through the following measures:

- Pobal continuing a ‘Super User Forum’ that provides a platform for stakeholders on the ground to become more engaged in a structured consultation and discussion about the end user experience of the systems and supports (i.e. the Hive system).

- Developing a range of additional tools and supports to support the engagement of early learning and childcare providers. This includes the development of a co-payment tool to minimise the administrative burden.

- Pobal prioritising communications, with training also a priority, to ensure that providers have access to relevant, accurate and user-friendly information in a timely manner in relation to the NCS.

- Payment of Programme Support Payments (PSP) in 2022, which recognises the additional time required of ELC and SAC providers to complete the administrative work associated with the DCEDIY schemes. The total 2021 Budget allocation for these payments is €19.4 million, with additional funding secured in Budget 2022.

- Considering options to simplify certain elements of the universal subsidy where governance and financial control is not compromised.

- Considering increases in the value of the universal subsidy. It is a matter for consideration in future budgets as extra funding becomes available.

• An extension of the universal subsidy to all children under 15 (announced in Budget 2022), which will standardise the age ranges for the universal and income-assessed elements of the Scheme.
• Increasing the availability of supports for vulnerable families through the following measures:

- A dedicated NCS Parent Centre is already available to assist families with applying to the NCS. City/County Childcare Committees (CCC) are available to families who require more intensive supports. The Department is currently engaging with those Committees towards enhancing these supports and working with hard to reach families and families experiencing difficulties accessing the NCS.