Appendix 2 – Income Assessed Subsidy
Income Assessed Subsidy
An Income Assessed subsidy is 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. The subsidy rate will vary depending on your level of family income, your child’s age and their educational stage. It can be used towards the cost of a registered childcare place for up to a maximum of 40 hours per week where parents are working, studying or training, or in circumstances where a parent is unavailable to care for a child. Where parents are not working, studying or training, the subsidy will be paid for up to a maximum of 15 hours per week.
The maximum subsidy rates by age are set out below. Maximum rates are payable where reckonable* family income is under €26,000 per year. Rates reduce on a sliding scale as income rises but subsidies are payable in all cases where reckonable family income is 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.
The table below is a helpful guide which shows the hourly subsidy rate payable based on reckonable family income and the age and educational stage of a child. The maximum subsidy rates are payable where the reckonable income is €26,000 or less, and the rates decrease on a sliding scale as reckonable income increases up to the Scheme’s maximum threshold of €60,000.
For example, if your reckonable family income is €32,500 per year and your child is 2 years old, your hourly subsidy rate will be €3.61. This amounts to €144 per week for a child using 40 hours of childcare.
If your reckonable family income is €47,500 per year and your child is in school, your hourly subsidy rate will be €1.38. This subsidy can be used for the hours of childcare spent outside of school, or the ‘wrap-around’ hours. You can read more about wrap-around hours here.
What items can be deducted under the Scheme?
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. More information on this can he found here
- Any maintenance payments made by you in respect of a child or former spouse
The following social protection payments (correct as of March 2019):
| Aftercare Allowance | Foster Care Allowance |
| Back to Education Allowance | FET Training Allowance |
| Back to School Clothing and Footwear Allowance | Guardian’s Payment |
| Back to Work Enterprise Allowance | Humanitarian Assistance Scheme |
| Back to Work Family Dividend | Mobility Allowance |
| Blind Welfare Allowance | Personal Reader Grant |
| Caranua Payment | Rent Supplement |
| Carer’s Support Grant | Short-Term Enterprise Allowance |
| Constant Attendance Allowance | Springboard+ |
| DES Third Level Bursary Scheme Payment | Student Assistance Fund |
| Diet Supplement payment | Student Grant SUSI |
| Domiciliary Care Allowance | VTOS Training Allowance |
| Exceptional Needs Payments | Youthreach Allowance |
What you will need to apply online:
- - A verified MyGovID account
- - Your children’s information such as date of birth and PPSN
- - Your employment and income related details
- - Your partner’s PPSN**
- - Your partner’s employment and income related details**
**if you are a member of a couple
What will happen to the existing childcare programmes?
The existing childcare programmes will operate until the launch of the National Childcare Scheme.
When the National Childcare Scheme launches the existing childcare support programmes will close to new applications.
To make the transition as smooth as possible families can choose to make the switch to the new Scheme when opens, or stay on their current programme for the 2019/2020 programme year.
Read more about this in the Frequently Asked Questions.
The free preschool programme (also known as ECCE, the Early Childhood Care and Education programme) will not be affected by the National Childcare Scheme, and will continue to operate.
Which Subsidy am I eligible for?
The type of subsidy you are eligible for depends on your individual family circumstances, such as your family income and your child’s age. Useful resources to guide you will be available on the website in the coming months. A Subsidy Calculator will also be available when the Scheme launches. The Subsidy Calculator is a useful tool, which can help you in understanding which subsidy may benefit you most.
For illustration purposes, some sample families are described below. In each case, the family qualifies for 40 hours of subsidised childcare per week.
Jenny
Jenny has one child who is 2 years old and needs 40 hours of childcare per week. She is a lone parent, working full-time with a gross income of €26,500 per year. Under the Scheme, her reckonable family income is €26,000 and she qualifies for a subsidy of €175 per week or €9,100 per year.
Siobhan and Jack
Siobhan and Jack have two children; a two year old who needs 40 hours of childcare and a 5 year old who needs 17 hours of afterschool care per week. Siobhan is working full time and Jack is studying. They have a gross income of €64,000 per year. Under the Scheme, their reckonable family income is €43,200 and they qualify for a total subsidy of €128 per week or €6,656 per year.
Charlie and Sam
Charlie and Sam have three children; a one year old and 2 year old twins who all need 40 hours of childcare per week. Charlie works full time, while Sam works part time. They have a gross income of €90,000 per year. Under the Scheme, their reckonable family income is €51,400 and they qualify for a total subsidy of €176 per week or €9,152 per year.
How will I receive my Subsidy?
The National Childcare Scheme recognises the importance of choice for families. As such, you can avail of your subsidy by registering with any childcare provider participating in the Scheme. Your subsidy will be paid directly to your chosen childcare provider once you have made arrangements with them. 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 your hours of childcare, 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.
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 hours 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 hours of care agreed, up to the maximum amount available to you under the Scheme. Providers will simply subtract your subsidy from their published fee, giving you access to lower childcare costs.
How to Apply
You can apply for a subsidy online on this website.
To apply online you will need to have a verified MyGovID.
Read more about this in the Frequently Asked Questions.
Get in Touch
The National Childcare Scheme Parent Support Centre is open from 9am to 5pm Monday to Friday.
Call 01 9068530
Email us at ncs@dcya.gov.ie
You can also contact your local City or County Childcare Committee.
Find your local City or County Childcare Committee here.
© 2019 Department of Children and Youth Affairs