Vol. 448 No. 1
34 Mr. M. Ahern asked the Minister for Finance if he will allow taxpayers the deduction in respect of a cost of employing child minders against their taxable income; the estimated gross and net cost to the Exchequer; and if he will make a statement on the matter. [1585/95]
It is difficult to provide a reliable estimate of the cost of introducing a childcare tax allowance. However, it is tentatively estimated that the gross cost, for example, of an allowance of £1,000 per annum, restricted to child minding for pre-school children could amount to £20 million in a full year. This gross cost would be offset to some degree by tax receipts and social welfare savings, but it is not possible to provide an estimate in this regard. However, such a tax allowance would have a significant cost for the Exchequer.
