Mr Speaker and Honourable Members,
Later today, I will be laying before this Honourable House the Child Day Care Allowance Amendment Regulations 2023.
Mr Speaker, the purpose of these Regulations is to increase the value of awards and toexpand the pool of persons eligible for the benefit. Specifically, it amends the Child Day Care Allowance Regulations 2008 to introduce tiered, income-based benefits, and a maximum gross annual household income of $130,000 with respect to an application for child day care allowance.
The amendment specifies the annual gross household income categories and the associated maximum awards that may be granted for an eligible child as follows –
- Category 1: a qualified person whose annual gross household income is up to and including $65,000 may be eligible for a maximum monthly allowance of $900 per month per child.
- Category 2: a qualified person whose annual gross household income is from $65,001 up to and including $97,000 may be eligible for a maximum monthly allowance of $700 per child.
- Category 3: a qualified person whose annual gross household income is from $97,001 up to and including $130,000 may be eligible for a maximum monthly allowance of $500 per child.
Overall, Mr Speaker, reforming the structure of awards will assist households to cope with the rising costs of day care and to minimize the risk of families having to decide between child day care services and employment. This additional support is paramount to sustaining households and ensuring children are on a developmental continuum from the earliest years.
Mr. Speaker, the new rates have been uploaded into the Department of Financial Assistance’s computer system and work has commenced to update the relevant forms to be in alignment with the amendments. The commencement date for these amendments will be 1st October 2023.
To close, Mr. Speaker, this increased benefit complements the duty-free concessions the Government has recently extended to day care facilities. The two initiatives demonstrate the Government’s commitment to improving quality and access to day care for Bermuda’s families. Protecting early childhood education is vital for individuals’ lifelong well-being and for the sustainability of our economy.
Thank you, Mr Speaker.