Brian's Budget to cut crippling childcare costs

THE Government is to announce a series of measures to reduce the crippling costs of childcare for working parents in next month's Budget.

Fri, 18 Nov, 2005 - 00:00

Harry McGee, Catherine Shanahan and Claire O’Sullivan

The package is expected to include tax relief or credits to offset childcare costs, and increases in child welfare as well as the €100 million for public creche places announced yesterday.

Finance Minister Brian Cowen said his Budget Day proposals would be part of a structured long-term response. It was his strongest signal that financial support for childcare will be tilted towards working parents without unduly neglecting stay-at-home parents.

Healthcare and education were the biggest winners when Mr Cowen unveiled a €3 billion increase in public service spending yesterday. Spending will rise to a record €48.5bn next year, and will top €50bn after Budget increases are announced.

In what was received as a relatively cautious programme, the spending increase of 6.6% will be only 2% more than expected economic growth.

With few eye-catching initiatives, the biggest increases were in the areas the Government has prioritised - health, education, social welfare and justice.

An additional €1bn will be spent on health next year but only €250m will be for new services. In addition, some €400m has been provided to pay compensation for illegal nursing home charges.

But the cost of attending A&E or staying overnight in public hospital beds has risen €5 on top of last year's 22% increase. Those with private health insurance can expect to pay higher premiums to offset the 10% higher cost of an overnight in a private bed.

The €250m will be focused on disability services, commissioning of new units, primary care, the National Treatment Purchase Fund, emergency planning and medical education.

There will be an increase of 3,000 in public sector employees next year, notwithstanding a commitment by Government to reduce the numbers by 5,000.

Minister Cowen said the most new staff would be recruited to "essential" front-line jobs in health and education but said there was a corresponding drop in numbers on the administrative side.

The Department of Justice will get an additional €1bn next year, though Mr Cowen accepted the target of recruiting an extra 2,000 gardaí would not happen until 2008.

He also said it was unlikely there would be a new Government-backed scheme to replace the Special Savings Incentive Accounts (SSIAs).

His cautious approach yesterday will leave him latitude for major announcements in the Budget on December 7, given the strong performance of the economy next year and projections for continued growth.

They will be focused on social welfare, care of the elderly, capital investment and childcare, as well as significant moves on the tax front.

Fine Gael deputy leader Richard Bruton described yesterday's Estimates as a "further example of the Government waste juggernaut".

Labour's Joan Burton described the increases in A&E and overnight hospital bed charges as a "new round of stealth taxes".

Summary

Health

€12.6bn to be spent next year.

€400m to refund illegal nursing home charges.

€5 hike in A&E and overnight public bed charges.

Rip-Off Watch

€15m to beef up consumer watchdogs.

€750,000 to combat cartels.

€3m for National Consumer Association.