Parents pay double for childcare

IRISH parents are paying an average of €478.24 in childcare per child per month, twice as much as Austria and Japan, according to a new OECD study.

The report, Babies and Bosses, said the high cost of childcare means parents prefer to use family as babysitters.

Because of the exorbitant costs, households where both parents work are no better off than if just one parent worked, the study found.

"As a consequence, a second earner with earnings at two-thirds of average earnings [average manufacturing wage is €25,330] in a family with two young children in care has no net return from work after childcare costs."

Public spending per child enrolled in any form of childcare is highest in Austria, at almost €3,478.39 per year per child, the same as in Japan.

Public spending is much lower in Ireland at €869.56 per child enrolled in a nursery or playgroup as these services are predominantly offered by private providers who do not receive any subsidies for their running costs.

The study also warns of a 40,000 shortfall in childcare places by 2010.

"It is estimated that by 2010, a total of around 210,000 to 220,000 childcare places, formal or informal, will be needed.

"Given the current number of places in nurseries, playgroups and childminding, this suggests an additional demand for around 76,000 places." A Government programme aimed at creating an additional 36,000 places will still leave a 40,000 shortfall.

There are also more than 7,400 children on a waiting list for centre-based formal childcare. Waiting lists are by far the longest for babies under one year (75% of current capacity), and shortest for infants over three years.

High employment rates among women of child bearing age are adding to pressure on Irish childcare services. Employment rates for women in their early-30s more than doubled from 29.1% in 1983, to 68.9% in 2001. Employment rates among Irish women in their late-20s are now 77.7% higher than in Austria.

The feeling that both the man and woman should contribute to household income is far higher in Austria and Ireland (around three-quarters of those surveyed), than Japan (just over half).

Only a small proportion of people feel mothers should work full-time when their children are under school age 3% of Austrians, 11% of Japanese and 12% of Irish.