VAT rise to increase cost of childcare

CHILDCARE providers warned last night that the VAT increase announced by Finance Minister Charlie McCreevy yesterday will dramatically increase the cost of childcare.

Angry parents and women's groups also hit out at the average €23 monthly shortfall in the promised child benefit increases that were to help pay for childcare.

The National Women's Council (NWC) said the €8 to €10 monthly increases in child benefit were grossly inadequate. NWC chairwoman Grainne Healy said: "These increases would not even buy you 15 minutes of childcare, it is far worse than we expected."