50% of income spent on childcare

CRÈCHE fees are so high in this country that two parents working full-time, and earning the average industrial wage must hand over about half of their joint income to pay childcare costs for two children.

The latest international study of such costs relative to average salaries — carried out by the Organisation for Economic Co-operation and Development (OECD) in 2004 — shows that across 27 countries, Ireland is second only to Switzerland in terms of high childcare costs.

The average industrial wage is €32,600 here, while the OECD research, carried out in 2004, puts the average cost of full-time crèche care at €625 a month.

According to the study, the average working couple pays 18% of their joint salaries on childcare. However, in Ireland we pay more than twice this figure.

The report also reveals that in Denmark, where childcare is highly subsidised, parents pay a mere 8% of their joint salaries on childcare. Costs in Britain are marginally less expensive than here Ireland, with two parents paying 43% of their joint average incomes.

The study shows lone parents in Ireland who use the average crèche, will see no financial advantage to working compared with staying at home on benefits.

Irish lone parents face the highest crèche, fees relative to salary across all OECD countries, paying 45% of the average industrial salary.

National Women’s Council Head of Policy Orla O’Connor said: “Cost of childcare is certainly the biggest barrier to women returning to the workplace after childbirth. Parents here are paying 100% of their crèche, costs while in countries like Denmark they pay a maximum of 33% even if they are on high salaries. Things look set to get even worse here with the planned reduction in subventions to community crèches.”

An OECD spokesman said many Irish lone parents just can’t afford to spend 45% of their salary on childcare and are forced to opt out of the workplace.

An Irish Examiner/Red C poll, published earlier this week, showed that 31% of Irish men and women cite the cost of raising children as the biggest block to starting families.

A spokesman for the Office of the Minister for Children said last night that the childcare investment programme is in line to deliver 50,000 additional childcare places by 2010.