Labour plans to deliver 40% childcare subsidy

A SUBSIDY of up to 40% of the average cost of childcare and free pre-school education for three to four-year-olds are at the heart of the Labour Party’s revamped childcare policy.

The proposals, due to be unveiled at its conference in Kerry this weekend, include a pledge to deliver one year of paid parental leave which can be divided between both parents.

The payments would be based on the existing 18-week maternity leave model where a maximum of €249.00 is paid weekly to the mother by the Department of Social and Family Affairs. Some employees maintain their full salary throughout leave due to individual employment contracts guaranteeing this right.

How the 40% subsidy would be paid is not yet clear, but party leader Pat Rabbitte recently signalled a preference for a refundable tax credit for each child under three. According to senior party officials, they will “be insisting on this policy being the cornerstone of any pre-election agreement going forward”.

Labour is also promising an income disregard system for home-based child minders which would allow them to earn up to €8,000 a year without entering the tax system.

Significant increases in start-up grant aid would be provided for crèches in disadvantaged areas, according to party spokeswoman on childcare Senator Kathleen O’Meara.

A pledge to abolish rate payments on childcare facilities and ensure greater rights for family-friendly working places is included in the proposals.

The cost of these moves has not been revealed but it is likely they would cost at least e200 million.

“We want to deliver a childcare infrastructure which puts children first; delivers choice and flexibility; tackles disadvantage and stimulates the economy. Quality childcare facilities have been shown to be one of the best ways of breaking the cycle of poverty, and investment in early learning and childcare is the best way of tackling early school leaving,” said Senator O’Meara.

“There is a stubborn level of early school leaving in this country and it is a drain on our economic performance.

“At present, community crèches in poorer areas are at the pins of their collars trying to survive and we see them as offering huge opportunity to parents and the next generation.”

In the months since the Kildare North by-election, childcare has emerged as one of the big issues the electorate is seeking action on in the run-up to the next general election.

Last month, the Progressive Democrats revealed a number of proposals aimed at improving the availability and cost of childcare.

These included the advent of tax breaks for childcare and the usage of primary schools for early morning and after-school care.