Coronavirus: Only 5% of £12m Stormont childcare scheme spent

Only 5% of a £12m Stormont scheme aimed at ensuring childcare for key workers has been spent.

The underspend was revealed at Stormont's Education Committee on Wednesday.

The key worker childcare scheme was intended to provide incentives for day care and childcare providers to stay open for key workers' children.

However, only £600,000 has been allocated to providers and childminders out of £12m available.

The scheme is now set to close in mid-July.

The executive is expected to provide a "recovery" plan for childcare instead.

With more parents returning to work as lockdown eases, the availability of childcare has become a major concern.

While guidance has been given to providers, many will have to care for fewer children so there are fears of a shortage of places.

The key workers' scheme was run by Stormont's health and education departments.

Chris Lyttle is chair of the Assembly's Education Committee

It opened in April but later faced criticism over how it was implemented.

The chair of the Assembly's Education Committee, Alliance MLA Chris Lyttle, revealed that only 5% of the available funding had been spent by mid June.

"We then paused work on the childcare strategy and received £12m for a Covid-19 childcare support scheme of which approximately £600,000 has been allocated," he told the committee.

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A spokesperson for the Department of Education (DE) said the amounts paid out under the scheme were determined by the volume and nature of the applications submitted and the assessment of eligible costs.

"Some settings availed of other Covid-19 emergency support schemes, for example the £10,000 Business Support Grant, and therefore the amount they required from the childcare scheme was significantly reduced," they said.

"In addition, demand for childcare for children of key workers and vulnerable children during April to June was less than anticipated.

"The number of childcare settings that opened (the most expensive element of the scheme) were much fewer than anticipated.

"While applications from childminders were strong, the unit costs associated with this aspect of the scheme are much lower.

"Despite support put in place to assist applicants and the closing date being extended by two weeks, only 46% of closed settings applied."

"The availability of further funding from July will be a matter for the executive," the DE spokesperson said.