More than $250,000 will be paid to Child Care givers this week as part of the Government's allowance programme.

The Child Care Allowance Act pays up to $800 per child to their care giver if the family makes less than $70,000 a year and the child is Bermudian.

Launched at the end of October, the scheme will require parents to be responsible for any costs above the $800 covered by Government.

On Friday, the Minister of Social Rehabilitation Dale Butler announced Government's initial payout to child care givers covered by the scheme.

He said: "The Department of Financial Assistance with much enthusiasm has pushed the button and first payment under the landmark legislation in the amount of $279,070 will be received by child care providers this week.

"This represents 190 parents or guardians who applied for the allowance that thus far has benefited 204 children.

"The Department of Financial Assistance will continue to monitor, very closely, the impact this programme is having on the parents and guardians and also assess the programme for its sustainability."

According to Mr. Butler, 316 applications were given out, and 203 were returned for the first round of the Child Care Allowance Programme.

All but 13 of the applications were accepted; eight were denied because the family made more than $70,000, two were denied because the children were not Bermudian and three pulled their applications because family would watch the children.

Mr. Butler said those cases where the children were not considered Bermudian were referred to the Department of Immigration for further clarification on their status.

Since the introduction of the child care allowance there have been concerns raised by the child care givers about the $800 limit because child care regulations only allow care givers to watch three children at a time.

Care givers understood that because Government would only pay $800 per child that was what they could charge and therefore only make $2,400 a month — not enough to live on.

Mr. Butler then clarified that care givers could charge what they needed and families would have to pay the difference between the Government allowance and the fees.

Since then the Department of Health and the care givers have linked-up in a Child Care Committee to help address affordability, quality and availability of the service in Bermuda.

And Mr. Butler said in the House of Assembly that the Department of Financial Assistance would also be monitoring the progress of the allowance over the next year.

He added: "Over the next six to 12 months the Department of Financial Assistance will obtain vital information as to how the person benefiting from this programme are gauging the use of the savings that they are now able to retain.

"The Department also plans to introduce to the parents and guardians of the programme strategies for saving and budgeting that will maximise their potential."