Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
A TAX CREDIT for parents who incur childcare costs would cost the Irish Exchequer between €290 million and €590 million per year.
According to the Minister for Finance Michael Noonan a tax credit was considered ahead of this year’s Budget, but it was deemed to be too costly.
This week, Children’s Minister Katherine Zappone announced a new childcare scheme that will provide means-tested subsidies towards the cost of childcare for children aged six months to 15 years.
Universal subsidies of up to €80 a month or €900 a year for all children aged between six months and three years were also announced.
Zappone told TheJournal.ie that means-testing and increasing child benefit was not on the table during her Budget negotiations with Taoiseach Enda Kenny.
Referring to findings from the interdepartmental working group on future investment in child care in Ireland, Noonan said a tax credit was not recommended.
Tax credit not equitable
He said there were concerns a tax credit would not be equitable and would have “high possible deadweight”.
There were also concerns that it would end up being fully absorbed in the cost of child care and might not have a meaningful impact on a parent’s decision on whether to join or return to the labour market.
However, it would appear costs was one of the over-riding factors for the government to move towards the subsidy scheme.
Tentative costings, based on estimates of average child care costs per pre-primary and primary school child care place, were applied to Department of Social Protection figures on the numbers of such children in receipt of child benefit.
Cost to the Exchequer
“If a tax credit were provided in respect of even half of these children at the standard rate of 20%, it would involve a potential cost to the Exchequer of between €290 million and €590 million per annum,” said Noonan.
The variation depends on the rate of take-up which is difficult to estimate. It was assumed for the purposes of that costing that all paid child care would be covered by the relief, that is, not just centre-based care.
“It is clear that any initiative that provides tax credits for paid child care would fail an equity test as it could be seen to unfairly discriminate against those individuals who choose to stay at home to care for their children,” said the finance minister.
In addition, Noonan said the tax relief would only be of benefit to those in the tax net. It is estimated that in 2016, 36% of income earners were exempt from income tax altogether.
Some criticisms have been leveled at the Government this week in relation to the new package. Some parents and childminders have criticised the new subsidy scheme for not recognising caring for children in the home setting.
Expanding the scheme to more childminders
Under the new scheme only childcare facilities and childminders registered with the Child and Family Agency, Tusla can receive subsidy payments.
There are currently only 125 childminders registered with the agency.
Zappone told TheJournal.ie last week that she is exploring ways to bring childminders into the subsidy scheme by changing the registration and inspection process for childminders who care for children in their own home.
Under the current scheme, childminders have to undergo the same box-ticking exercises and inspections as large-scale creches.
Childminding Ireland CEO and spokesperson Bernadette Orbinski Burke said the Government needed to appreciate the ethos of a minding a child in the home.
To embed this post, copy the code below on your site
As election time is fast approaching some of these back benchers are getting worried about their seats and more importantly the gravy train, they are fluffing their feathers in an effort to pretend they care about us ordinary voters, in reality they have constantly proven they don’t give a rats ass……
An the voters have constantly voted them into power.
Well there is no option they are all the same party makes no difference
That’s the spirit. Sure what can we do? Best leave it as is and have a good old whine about it.
Agree look at the teacher wan with the peroxide hair( in Meath or somewhere) who has jumped from Labour to FF !!!
You missed the point… It’s time for real change.
Ok good. So what is that change, In your opinion?
Do away with the whip system would be a start, make them vote with their conscience assuming they have one, make executive more accountable, I’m no expert but that seems like a good start to me
Who cares as these guys have absolutely nothing to do with the coming budget….tossers the lot of them….excuse my french
100% correct. Germany and to a much lesser extent the “economic council” will sort it out :-) ….. So we can expect more of the same
At odds over Budget? Can they not just get one person to translate it from German and email it on?
So what’s on offer is getting more screwed in the short term or the long term.
Depending on if we meet over-optimistic growth targets.
Brilliant.
@ElasticPooch
If only it was that easy the tender to translate the budget from German to Irish than into english must be drawn up and published all over the EU, Before its awarded to pwc or Goodbodies, some may say.
Yeah, sure here now Deco will you come along to the Lockout2013 when it kicks off or are we gonna sit on our holes tweetin about this sham of a government forever?
At odds yeah right there up there sipping pints and laughing their backsides of at us
Just dissolve the government. Labour are going to end up a shadow of their former values, and Fine Gael will be in opposition next time around anyway.
At this point, retaining the current government has more to do with vanity than belief for Kenny & Co.
Hayes is a trumped up arrogant fooker. He likes playing with numbers be it 4% or 5%. The reality of mass human suffering caused by this juggling act to satisfy the markets ( Troika, Germany) doesn’t seem to concern him. Those of us lucky to have jobs are now slaves to an insurmountable debt. Those young enough and skilled are hopping on the nearest plane to escape, and yet Hayes and his ilk slavishly pursue this failed policy. Their will be no one left to applaud Hayes when he sees our deficit reach 4% as the country will be broken and empty.
On the other hand it’s just probably the usual good cop bad cop routine, float Armageddon and deliver something a bit more cosier than Hell, and the idiots will sigh in relief.
So Rob you want FF (who destroyed the country) or SF ( who destroyed the country) to lead us – Jaysus I’m outta here !
Sf destroyed the country? Explain that one for me go on I could do with a laugh!
25 years of murdering its people north & south !
Institutionalised abuse of women and children, selling off of fisheries, mineral reserves to the lowest bidder, loss of sovereignty, apartheid up north ignored thus empowering the ira, collusion with loyalist death squads/British secret services in terror campaigns, collusion with US war machine via Shannon, enforcement of banker led raid on public finances and troika economic enslavement, generations of emigration, etc, etc….
This can all be played at the feet of SF is that right? Because the last time I checked it was FF/FG led governments that gave us the banana republic, in all its 90 odd years of glorious failure, whole ad have spent their time representing people north and south that this government had too much contempt for to even acknowledge
Hang on a minute now, FF FG and Labour all have their own history of murder as you call it.
All the Shinners coming out from under their rocks – beware people be afraid
Excellent response Elrat
@Rob. Just dissolve the government?? This isn’t Egypt (thankfully)
Another FGer seeking out the media limelight
I mean Labour, but they are practically indistiguishable at this stage I suppose
Hold on… maybe it’s FFafter all? :)
Labour will be extinct after the next general election
As should the real culprits FF
This is merely a game & a smokescreen, expect far more of this kind of stuff coming up to the budget, Labour are screwed, their Local Election candidates & EU candidates are getting worried of wipeout & this is merely semantics to give the Electorate the impression they are standing up to FG! -They are wasting their time, do they think we are stupid?
Labour sold out to their Voters, they Lied, Lied, Lied!
Payback is only 9 months away!
Labour hopefully will be extinct after next election. More right wing than Fine Gael.
When are Labour going to pull a green party move, come out with a statement we couldn’t abide with the decisions being made anymore that are affecting every citizen in the country, so we are ending the coalition with fg. It’s amazing what these bastards will do to save face and in the hope the public will forgive them in the next election. The Irish people have the worse memories in the world because they keep voting these gits in at every other election. Voted out next election then voted back in election after that.
Is this the start of the orchestrated move for Labour to walk to try and save themselves? Too little too late methinks.
The sooner FG drop labour the better. There is a need for a fully fledged, right wing party in Ireland. It would give the country some stability and shut the bleeding hearts up for a while.
Thomas you clearly have a deep infatuation with Enda Kenny.
Whatever he’s paying you/doing for you, realise that you’re still talking total bollocks.
Sounds like something that happened in Germany during the 30′s, think the Italians tried it too and maybe the Spanish dabbled in it as well. Not sure how it worked out for them
Couldn’t agree more Thomas, it worked a treat for Germany and Italy in the 30′s and Spain well into the 70′s. And we shall call him Heir Kenny, and he shall gather round him like minded Blonde quiffed warriors, and before them they shall rid the country of the poor and sick, leaving only those healthy and wealthy, and corrupt enough to rule the meek whom shall provide for them monies, some of which they will keep and more they will hand over to their cousins in the “Troika”.
Rob, “Thomas” has a newly opened twitter account. He is a troll of the highest order. Check his profile ,he has already send aggressive tweets to people who have called him out on his tweets.
Thomas maybe you should go and lie down before your crazy rants land you in the crazy house………….or better yet just take your head out of enda’s rear end and get some much needed air and reality!
Can I’ve a loan of your iron for a minute dude… My natzi uniform has a crease in it..!
Questions: Do the public have access to the budget and fiscal year end information regarding budget achievement?
Anyone else think he sounds like that knacker Cowan? Might need a PR alteration there.
Why didn’t they just put a picture of Rodney on the cover shot. Jeysus what a plonker
Contradiction: Gives out politicians using the media to further an agenda. Uses the media to further his own agenda.
Send the junior ministers to the naughty step.
have your say