Low income families, with children in day cares, will receive a subsidy to help ease their financial burden.

Health and Family Service Minister Wayne Furbert yesterday announced that the child care initiative, which will cost Government more than half a million dollars, would go into effect September 1.

"Cabinet has now approved a subsidy of $50 per child per week,'' he explained. "It will be administered by the Department of Financial Assistance.'' The new plan will only be available to those children who attend a licensed day care.

According to Government statistics, as of this May, some 1,700 children up to the age of four were registered in nurseries and day care centres.

And the data showed that 60 percent of the children, up to the age of four, had working mothers.

"In the private sector, the cost of child day care ranges from $65 per week to about $115 per week -- for more than one child,'' Mr. Furbert added.

"These services are estimated to have cost local households about $18 million in 1997.

"The burden of the cost of child care on low income families is significant and can range from 10 to 25 percent of family income.'' And he estimated that some 395 children will be eligible for the new subsidy.

In order to receive a subsidy, a family's income will be assessed by the same practices associated with the Housing Allowance Programme.

According to Mr. Furbert, if three people resided in a house where the monthly income was around $3,150 they would qualify for a subsidy. A four-person household with a monthly income of $3,580 would also qualify for help, he added.

The new programme will cost the Government $592,500 for the period between September 1998 and March 1999.