Consumer Corner: Should grandparents be paid for minding their grandkids?

Childcare can be expensive — an Early Years Sector report says it can cost just over €700 a month for each child

Research from Trinity College found that just over 29% of grandparents in Ireland over the age of 70 provide childcare for their grandchildren and on average provide around 16 hours per month of childcare

There's no doubt about it that childcare can be expensive. It can also be stressful, trying to find the right childminder or the perfect crèche. You are trusting someone to look after the most precious person in your life. Such dilemmas make it hard to be a working parent today, especially with very young children. There could be days when your child is sick and you have to work or days when your childminder is sick and you still have to work.

According to an Early Years Sector report, childcare can cost parents an average of €175.24 per week in Ireland or just over €700 a month for each child. Being faced with such costs has forced many parents to turn to their parents to help with childcare and at school gates across the country you'll see grandparents who have taken on childcare roles. However, are there rules when it comes to paying for this so-called granny-nanny? Should grandparents be paid for providing childcare or are they obliged to do it for love?

Research from Trinity College found that just over 29% of grandparents in Ireland over the age of 70 provide childcare for their grandchildren and on average provide around 16 hours per month of childcare. They found that 5.5% provided more than 40 hours of childcare a month. Some countries have different trends when it comes to grandparents and childcare. In China for example, reports say that around 70-80% of children are raised by their grandparents as the primary carers, with the average length of time for children living with grandparents being eight years. An academic report on Science Direct looked at the impact of caring for grandchildren on the health of grandparents in Europe. The report said that in a study of 10 European countries, 58% of grandmothers and 49% of grandfathers looked after at least one of their grandchildren under the age of 16. They found that in the United States one in four children under the age of five is cared for by grandparents. In Ireland, situations vary on grandparents providing childcare. However the issue around paying for it is less straightforward.

Daragh Cassidy of Bonkers.ie says that it will really come down to individual circumstances as to whether to charge for minding grandkids or not.

“Many families these days need to rely on the support of grandparents for childminding. Whether the grandparents should charge for the service will really come down to individual circumstances, people's finances, the strength of family bonds and values. But there's no right or wrong answer.”

Daragh Cassidy of Bonkers.ie says it comes down to individual circumstances as to whether to charge for minding grandkids or not: “Many families these days need to rely on the support of grandparents for childminding. Whether the grandparents should charge for the service will really come down to individual circumstances, people's finances, the strength of family bonds and values. But there's no right or wrong answer.”

He says that while many grandparents will be happy to help out as much as possible for free, especially in the earlier years, there is of course a limit to everyone's time and generosity, even for someone’s own grandkids.

“If grandparents are expected or asked to regularly help out, then I don't see why some type of small payment wouldn't be provided. Of course some grandparents may feel uncomfortable taking money, in which case a gift or payment towards a small holiday might be better.”

There was talk a few years ago of a Government-supported grant for grandparents who were looking after their grandkids. Independent ministers at the time proposed grandparents should get a €1,000 annual payment if they were minding grandkids for more than 10 hours a week. Nothing became of it however and it is not something that has been spoken about at Government level for a few years now.

Money expert, Frank Conway says he believes most grandparents will not want payment for minding grandchildren: “Love and affection is the primary reason most of them do it in the first place and supporting their kids is their primary motivation.”

He says that on that basis, the concept of actual payment that may have a tax liability is a complication most grandparents would probably rather avoid.

“I think in today's Ireland, with young parents struggling to buy a home, lower levels of savings, higher cost of living for everyday goods, their parents are probably only too happy to lend a hand. Plus, there is the added consideration that provided that the level of care they offer does not become overwhelming, they may welcome some daily activities that give them a daily structure.”

Further Trinity College research found that grandparents who provide more than 60 hours of childcare a month have seen negative impacts on their mental health. At the time the reseach pointed to the State being to blame and should be doing more to help the situation. In Britain, grandparents can claim tax credits for minding grandchildren up to the age of 12 years old. It's estimated that this could be worth around €1,000 a year for a grandparent.