A free preschool service will cater for 70,000 children from the start of next year, writes CARL O'BRIEN

THE €1,000-a-year childcare supplement paid to families with children under 5½ years of age will be halved from next month and abolished altogether by the end of this year.

In addition, child benefit payments will be either means tested or taxed for the first time in the 2010 budget. No decision has yet been made on how these payments will be changed.

The childcare supplement will be replaced by a year’s free preschool for all three- to four-year-old children. This initiative is due to begin in January next year and will cater for an estimated 70,000 children.

Announcing details of the plans for free preschool, Minister of State for Children Barry Andrews said it would promote equality of opportunity at the most important developmental stage of children’s lives.

“Regardless of income or ability to pay, all children will be entitled to avail of this preschool service,” he said.

Such a move has been advocated by groups such as the National Economic and Social Forum, whose research indicates that every euro spent in this area yields a return of at least €7 in later life.

However, there is doubt over whether the childcare system will be able to cope with an influx of children into the sector.

Government sources say most of the estimated 70,000 children are already in some for of childcare, while they say there is spare capacity in the system of anything in the region of 20,000 places.

Children must be aged between three years three months and four years six months to be eligible for the scheme.

Those enrolled in full- or part-time childcare services will receive free preschool provision of two hours and 15 minutes a day, five days a week over a 50-week period.

Over the course of the year, the financial benefit of the scheme for a single child is more than €2,400.

To introduce the scheme as quickly as possible and maximise the number of children who will benefit, Mr Andrews said free preschool provision would begin from January.

From September 2010, the preschool year will run from September of each year, in line with the school year.

All community and private preschool services, which meet the requirements of the scheme, will be invited to apply for entry to the scheme.

The announcements received a mixed reaction from lobby groups yesterday, with most welcoming the preschool initiative but criticising plans to tax or means test child benefit.

The Children’s Rights Alliance said any proposal to tax or means test child benefit in the future would be a disaster not just for children but for the State as a whole.

“Raiding the piggy banks of children is not the solution to our economic crisis, and it will ultimately hit the poorest families hardest,” said Jillian van Turnhout of the alliance.

The Irish Preschool Play Association said that, while it regretted the loss of the supplement to parents, the fund was being redirected in the right way.

“We’ve been calling for this for some time and our members are happy to see more investment going directly into the sector,” said the association’s chief executive, Irene Gunning.

The Irish Childcare Policy Network, however, said more cost savings should be directed into investing in further early childhood care and education measures, rather than diverting money into other areas.

- A helpline will be in place with effect from Monday, April 20th, to answer queries from parents and childcare providers in relation to the operation of the new preschool scheme. The number is 1890-303039.