Increases in child benefit of up to 30 per cent for the under-fives are among proposals aimed at easing the financial burden of childcare that are being examined by the Government ahead of the Budget, writes Carl O'Brien, Social Affairs Correspondent
A detailed childcare strategy has been drawn up in consultation with the National Children's Office on the options available to the Government in tackling childcare. It also includes a range of other proposed measures such as tax relief, extended paid parental leave and a subsidised pre-school or kindergarten scheme.
The report, presented to a Cabinet sub-committee last week by Minister of State Brian Lenihan, contains options across four broad areas aimed at increasing the supply of childcare places, developing the pre-school system, increasing the affordability of childcare, and reforming tax and welfare.
It comes at a time when Central Statistics Office figures show that, for the first time, the number of women in the workforce (51.4 per cent) exceeds the number not in the workforce. This compares to 35.7 per cent a decade ago.
Other more detailed CSO figures show there are now 776,800 women in the workplace, compared to 539,400 involved in "home duties".
The Government report points out that increases in child benefit would be costly and would run into several hundred millions of euro. The overall cost of child benefit to the State is €1.9 billion.
Although an expensive option, it notes that such a measure would not discriminate between stay-at-home mothers and those in the workplace.
The option of a year's free pre-school for three-to-four year olds is also examined in the report. The annual cost of funding such services would be in the region of €141 million, along with capital costs of €233 million.
Less expensive options, such as extending and expanding the existing Equal Opportunities Childcare Programme and a range of tax-based measures, such as relief or credits, are also examined. However, the report says tax breaks without an increase in supply of childcare places may not impact on the affordability of child care.
The report points out that the average cost of childcare in some parts of Dublin is between €800 and €900 a month, and is less expensive outside the capital.
It also proposes extending paid maternity leave to six months, and unpaid parental leave for up to 12 months. This proposal could cost in the region of €190 million. It could be implemented over the course of three years.
At present, Irish mothers are entitled to 18 weeks of paid maternity leave, the minimum required by European Union law. That compares to 26 weeks in Britain.
