Childcare arrangements still dictated by banks despite last-minute tweaking

Working parents in mortgage distress will still have their childcare arrangements dictated by banks despite some last-minute tweaking of the personal insolvency guidelines.

Following a political backlash over plans in the draft rules allowing banks to force parents to give up childcare, the Government has softened the language in the final version, which is to be published today.

While offering a more reasonable approach, banks will still be able to tell parents to move their children to care that is cheaper or in a different location in order to help parents meet debt obligations.

Taoiseach Enda Kenny was forced to offer assurances to families last month following widespread anger over measures in the draft guidelines.

The guidelines stated: “Where a person is working and paying for childcare as a consequence of his or her employment, the cost of childcare should not exceed the income from the employment”.

While the clause is expected to be removed, the final version acknowledges that childcare is a significant expense for people in work.

It says the cost of full or part-time childcare “may have to be allowed for” in cases where there are children in a one-parent household where the parent is working, or in cases where there is a two-parent household and both parents are working.

The National Women’s Council had called for the full removal of the clause following confusion caused by the Taoiseach’s comments in recent weeks.

Mr Kenny told the Dáil that the guidelines “will not have a condition that anybody — man or woman — be required to give up a position”, while refusing to say if the specific measure would be removed from the guidelines.

There was an angry backlash to the measure last month after Transport, Tourism, and Sport Minister Leo Varadkar said it was legitimate for women to “keep their position on the career ladder” but added that, “if you can’t pay your mortgage as a result, or buy your groceries as a result, then that is something that needs to be taken into account in any insolvency arrangement”.

The guidelines were seen by Cabinet on Tuesday but ministers did not have to sign off on the measures.