Dáil Éireann Debate, Tuesday - 24 February 2015
134. Deputy Paul Murphy asked the Minister for Children and Youth Affairs his views on the survey by the Irish Independent (details supplied) on the rising cost of child care; and if he will make a statement on the matter. [7750/15]
View answerI am aware of the relatively high cost to parents of childcare in this country and of the difficulties that this presents, particularly where both parents are in employment outside of the home. The article referred to by the Deputy refers to figures produced by the CSO which indicates that child care fees generally across the country increased by 2.4% in 2014.
To help address child care costs, in the region of €260 million is provided annually by my Department to support a number of child care programmes. These programmes are in addition to the support provided to all parents in the form of Child Benefit.
The objective of the investment by my Department is to assist parents in accessing quality and affordable child care. More than 100,000 children benefit from this investment each year. These programmes include the free preschool year provided under the Early Childhood Care and Education (ECCE) programme. In the region of 68,000 children benefit from the programme at a cost of €2,375 per child per year.
The CCS programme provides funding to community child care services to enable them to provide quality child care at reduced rates to disadvantaged and low income working parents. Parents qualify as disadvantaged or low income on the basis of means-tested entitlements. In the case of full day care, parents qualifying for the higher rate of subvention under the CCS programme can have up to €95 per week deducted from the overall charge for child care in the participating child care facility. In the region of 25,000 children each year benefit from this programme.
Further childcare support is provided under a number of labour activation measures which support parents returning to the workforce or availing of education or training opportunities.
Increased capitation and subvention payments under the child care support programmes could reduce the cost to parents, and support child care services to meet the overall costs of child care provision. I have indicated that if resources become available, I will review the scope for increasing the level of payments.
Reference is made in the newspaper article to tax relief as a means of supporting parents to meet child care costs. The question of tax relief or tax credits as a means of supporting working parents was looked at previously but was considered to be unsuitable for a number of reasons. For example, the introduction of tax credits would not help to support quality improvements within the child care sector and would not help those families on low pay who may not have any tax liability. There is also concern that the application of tax credits could lead to increased prices and therefore have limited impact in terms of savings to parents.
I want to look at the question of appropriate supports for child care in a wider context. It is crucial that we develop a coherent whole-of-Government approach to investment in child care services. To ensure that all the benefits of our full range of child care investments are fully realised, future public investment in child care must be evidence-based and strategically coordinated. I have established an Inter-departmental Group to look at the provision right across the 0 to 6 age group as well as to consider the after-school needs of older school-going children. I have asked the Group to report to me by the Summer.
