Budget 'fails' parents as childcare bills soar

By Claire O'Sullivan

The State's annual children's allowance payment of €1,700 a year doesn't even pay one-fifth of the average childcare costs for a single child.

Unions and opposition parties said the failure to grant tax relief on crèche fees would leave many parents struggling to meet crippling childcare costs.

SIPTU's national equality secretary Rosheen Callender said the economy was already suffering as childcare bills of at least €150 per week per child "are now driving many mothers and fathers out of the workforce".

Dublin Chamber of Commerce warned that childcare was a potential time bomb as an estimated 75,000 childcare places will be needed by 2014 as the greatest proportion of the population are aged 20-24 at present.

In stark contrast to the Irish Government's stance on childcare, British Chancellor Gordon Brown yesterday announced as part of his pre-budget report a £285 million (€413m) cash injection to extend paid maternity leave from six to nine months with leave being transferable to fathers, an extension in free nursery education to 15 hours for three and fours year olds and up to £50 (€72.44) a week help with childcare costs through tax relief.

Funds will also be provided to keep British schools open from 8am to 6pm to look after children while parents are at work.

Ms Callender said that with the €2.3 billion unexpected overshoot in tax revenues this year, the Government could have had a golden opportunity "to help parents out with a basic need that shouldn't be seen as a luxury".

The Budget was described as a "missed opportunity" by the National Women's Council of Ireland and they questioned how economic growth could be sustained without a childcare infrastructure.

IBEC director of social policy, Maria Cronin said they were "disappointed" by the lack of tax relief and reminded the Government that the 2003 Wim Kok report on EU employment levels had highlighted that the lack of affordable childcare was hampering employment possibilities.

"The failure of Government to address adequate pre-school provision will have serious economic as well as social effects. The National Competitiveness Council has pointed out that such early intervention is essential for continued economic prosperity," said Labour party spokeswoman on children, Senator Kathleen O'Meara.

Fine Gael social and family affairs spokesman David Stanton said increases in children's allowance "were going nowhere if you pay childcare bills, as it's a second mortgage".

The Civil Public and Services Union (CPSU) warned that unless the Government makes childcare a priority, it will not meet the Lisbon target of 60% female employment by 2010. At present, 50% of women are in employment.

Finance Minister Brian Cowen said up to €15.2m or 22% more was being spent next year on increasing childcare places under the Department of Justice's Equal Opportunities Childcare Programme.

"It has been the policy of this Government to deal with this on the supply side. There are issues on the demand side. There are ideas out there that we could take on board. I am open to looking at these things," Mr Cowen said.

He said this was his first Budget and some of these issues would take time to study.