Government's means-tested child care allowance could cost more than $3 million a year.

That is according to figures released to The Royal Gazette by Dianna Taylor, the Director of the Department of Financial Assistance (DFA).

The programme was announced in the last Throne Speech and is designed to help Bermudian families who earn less than $70,000 a year pay for their child care. However there has been some confusion about how Government will pay for it because in the Budget earlier this year only $1.5 million was allocated to the programme.

And Minister of Social Rehabilitation Dale Butler said almost 400 families could be helped through this initiative which will pay the child care provider $800 a month per child.

However, at $800 per child, per month the Government's child care bill is closer to $3,840,000 or $320,000 a month, if they are covering 400 children for one year.

Mrs. Taylor said the $1.5 million was budgeted for this year's programme, which will run from November until March 31 or five months and therefore will fully cover at least 350 children.

She said: "It is estimated via the Department of Statistics that the Child Day Care Allowance might encompass 350 to 400 children.

"The allowance is up to $800 per month/per child. Not all day care providers are at $800 at this point, and not all may participate.

"DFA has earmarked the amount of $1.5 million to cover the programme from inception (November 2008) until the end of this fiscal year, ending March 31, 2009.

"Depending on the numbers, if it is 350 children — the cost could be $1.4 million; if it is 400 children — the cost could be up to $1.8 million."

Child care givers, however, are upset over the allowance because they say $800 a child is not enough to live on.

Since the announcement of the means-tested child care the Department of Health has cracked-down on caregivers with more than three children.

According to the 1998 Children's Act care givers must register and are only allowed to have three children in their supervision for safety and the child's developmental needs.

Only registered care givers will be eligible for payment through the Government's allowance scheme, which would cap their Government allowance at $2,400 a month or $28,800 a year. Any excess fees will have to be paid by parents.

At a meeting last week almost 50 care givers threatened to walk out after a Department of Health representative failed to attend to address their concerns.

Issues raised included them needing to take-in at least five children to keep costs down and to make enough to live as well as the failure of the Health Department to implement this limit until now.

A spokesperson said a second meeting has been arranged now, for November 13 between 7 p.m. and 9 p.m. at the Goodwin C. Smith Hall, New Testament Church of God on the corner of Dundonald and Union Streets in the City of Hamilton.