Final talks under way on childcare supports in budget

Funding for affordable childcare for low-income families; paid paternity leave; and extending parental leave up to at least seven months are being considered as part of next week’s budget.

Final negotiations this week between Public Expenditure Minister Brendan Howlin and ministers will determine how much of his €750m fund can go on childcare supports. This is separate from the €750m which will go on taxation measures.

Government sources confirmed that the coalition are “moving in the direction” of funding private facilities to allow an extra 25,000 low income families benefit from affordable childcare.

Sources said some provision for paid paternity leave as well as extending parental leave by at least a month are being considered.

Coalition figures are also confident that free pre-school care may be extended beyond a single year.

“The figures are going in that general direction. The idea would be to increase supply for low-income families, but reduce the price for everybody and give something for paternity [leave] and pre-school time,” a coalition source said.

The Government currently funds not-for-profit childcare services for low-income families. It is believed it is considering extending these subsidies to private providers.

The Coalition have already signalled a desire to move to a full year’s leave for parents. This could be split between both parents but could take as long as a decade to be implemented.

Fine Gael TD for Cork South Central Jerry Buttimer, chairman of the Oireachtas Health Committee, said yesterday that reducing childcare costs was a priority: “Recent surveys have indicated that parents need to be earning up to €30,000 per year just to cover the costs of childcare for two children.

“Setting up a simplified single subsidy scheme based on income, that will cover both community and private settings, would also ensure parents have wider choice and that all service providers have access to Government support.”

Meanwhile, Tánaiste Joan Burton will today launch a childcare report backing the introduction of paid paternity leave and the extension of parental leave.