Frequently Asked Questions: Subsidy Scheme for Early Years Childcare Costs

No, that is not necessary. In 2024, you will be able to submit applications throughout the calendar year. In principle, therefore, you can reapply for a grant for every application that meets the conditions of this grant scheme.

For 2025, you will need to estimate the number of toddlers you expect, as you must apply for the grant by 1 October 2024 for the whole of the 2025 calendar year. You should base your estimate on the number of toddlers in 2024 and any applications you have already received for 2025. This may be difficult at first, but over the years it will become increasingly clear how many toddlers covered by the scheme attend one or more of your childcare centres.

You calculate the amount of the grant per hour per child as follows:

For your third and any subsequent children, you will receive the same grant amount as for your second child.

To work out the total grant, multiply the grant by 8 hours and then by 40 weeks to cover a full calendar year. SO, for child 1: 9.36 × 8 hours × 40 weeks = €2,995.

The council awards the grant for a maximum of one calendar year. Grants applied for in respect of the calendar year 2024 will be awarded up to and including 31 December 2024. Subsidies applied for before 1 October for the coming calendar year will be granted from 1 January to 31 December inclusive. Whether you will also receive a grant in the following calendar year depends on the total amount of grants applied for collectively by all childcare organisations. The date on which you submit your complete grant application to the local authority is also important. If the total value of the applications remains below the subsidy ceiling, all applications that meet the conditions can be approved. If the total value of the subsidy applications exceeds the subsidy ceiling, the date on which your application is submitted to us in full is important. This is because a draw will be held amongst the applications submitted on the same day which, if we were to approve the requested subsidies, would result in the subsidy ceiling being exceeded. We will reject applications received after this date on the grounds that the subsidy ceiling has been exceeded. You cannot derive any rights from the fact that you did receive a grant in a previous year.

Depending on the amount of the grant, you will receive it in one or more instalments. The number of instalments is specified in the decision granting you the grant. The local authority pays grants under €10,000 in a single payment; grants up to €20,000 are paid half-yearly; those up to €50,000 are paid quarterly; and those of €50,000 or more are paid monthly.

Parents pay the parental contribution in accordance with the government’s childcare allowance table. If necessary, you may increase the invoice for the parental contribution by the amount per hour by which your hourly rate exceeds the national hourly rate (2024: €10.25).

You should not charge parents the standard hourly rate and then offset this against the subsidy afterwards. This could create too high a financial barrier for parents wishing to use childcare services.

A subsidy ceiling means that this is the maximum amount of subsidy the local authority can award under this subsidy scheme. If childcare organisations collectively apply for a higher total amount of subsidy, we will use a lottery to determine which applications we can and cannot approve. This lottery will take place amongst applications submitted on the same day which, if approved, would cause the subsidy ceiling to be exceeded. We will reject all applications received after this date, as the subsidy ceiling has been reached. This means that you will not receive a subsidy, even if you do meet the conditions.

Yes, that’s correct. If it later transpires that you needed less subsidy than was granted to you, you must repay the remaining subsidy to the local authority. This may happen if a toddler who is using a subsidised place leaves the nursery and you do not receive any new enrolments from toddlers covered by this scheme. Or if, during the course of the calendar year, the family is able to claim childcare allowance from the tax authorities after all. You will then have to repay part of the subsidy.

If it subsequently transpires that parents have provided incorrect information, resulting in an unjustified claim for a subsidy, you must charge the parents the standard hourly rate retrospectively. If this results in a surplus of subsidy in the current year, the local authority will reclaim that amount. If the subsidy for the year in question has already been finalised, no adjustment will be made, unless the amount exceeds €10,000. You must report this to the local authority.

Yes, the declared income remains the basis for a calendar year. However, in the grant application for the following calendar year, you should take into account the parents’ changed income.

If the other parent also starts working during the calendar year (or if the single parent finds work), we expect parents to apply to the government for childcare allowance and to stop using a subsidised place.

In general, with regard to financial accountability, you are required to submit an annual report to the local authority detailing the number of subsidised hours actually used during that year, the number of children who have benefited from the service, and the income bracket to which the parents belong. You must also provide a financial report. For grants exceeding €50,000, we require an audit report in accordance with our audit protocol.

The local authority may carry out spot checks or checks where irregularities are suspected. You must account for the grant relating to any given calendar year by 1 May of the following calendar year.

No, the local authority can never pay out more in grants than has been allocated. This will not be an issue in 2024, as you can apply for a grant separately for each toddler who joins the programme during the remaining months of the year. From 2025 onwards, you must apply for the grant before 1 October of the preceding year. So, before 1 October 2024, you must submit an application for 2025. You will therefore need to make an estimate. If this subsidy proves insufficient, you will not receive any additional funding from the local authority retrospectively.

Grant recipients must submit their accounts by 1 May of the year following the year for which the grant was awarded. Therefore, the 2024 grant must be accounted for by 1 May 2025. The local authority will then approve the grant within 8 weeks. The local authority may extend this 8-week period once by a further 8 weeks. Only in situations where the applicant deliberately provides incorrect information may the grant be reclaimed at a later date.

and the number of toddlers who are eligible for this grant scheme but for whom I have not received a grant?

The local authority is requesting this information to gain an understanding of the number of toddlers who might be eligible for the toddler scheme. This information helps to assess whether the budget available for the toddler scheme is sufficient.

Is the annual tax statement from the parent who is currently still in work sufficient?

Yes, it is based on the family income (gross annual salary) at the time of the application. The annual income statement of the parent who is working at the time of the application is sufficient. Please bear in mind, however, that if the other parent returns to work, entitlement to the subsidy will cease. It is therefore very important that parents report any changes in household income in good time. This also applies if the main breadwinner’s earnings increase. In that case, you will be charged a higher parental contribution and will therefore require less subsidy.