There are no circumstances whereby PAYE taxpayers can recover child care fees. However, as the Deputy may be aware, the tax code provides a tax exemption from benefit-in-kind where employees receive free or subsidised child care from their employers. The exemption applies whether the employer provides the facilities in-house or in premises made available by the employer in another location. The exemption also applies if an employer provides child care facilities jointly with others for example, with other employers. The exemption was extended in Finance Act 2001 to cover situations where an employer does not wish to get involved in the day-to-day running of the facility but makes a contribution to the capital costs of an independent supplier of child care facilities. The exemption does not apply if the employer simply pays or subsidises the cost to an employee of an independent child care facility.
This Government acknowledges the continuing cost pressures on parents, particularly those with young children. Child care is probably the single biggest issue facing working parents today. That is why the Government introduced a suite of measures in this year's budget, including the early child care supplement of €1,000 in a full year for each child up to his or her sixth birthday, increased child benefit payments, extended paid and unpaid maternity leave and a new national child care investment programme which aims to fund an additional 50,000 child care places over the next five years. In total, over €2.5 billion extra will be invested in this area over the next five years.
I am satisfied that these measures will play a significant role in addressing the issue of child care and the welfare of children.