Tax relief on childcare is long overdue

OUR politicians have used and abused tax reliefs for decades, as long as it suited their purposes and helped get them reelected. These range from Charlie Haughey’s exemption of thoroughbred horse breeding to the more recent cycle-to-work scheme, which gave many people ‘free’ bikes but actually costs the government little or nothing relative to its value as a vote-winning stunt.

But for decades Ireland has remained one of the few European countries where no tax credit allowance is given for having a child, while at the same time topping league tables internationally for the high cost of childcare.

Across the European Union, childcare costs around 12% of a family’s income on average, while in Ireland it accounts for 35%. Pre-school care for two children – on average €400 per week – is not manageable for many working families.

And requirements for better standards and improved staff qualifications in the sector following RTÉ’s shocking investigation into creches last year will push these costs higher.

Now, with an election looming, we are hearing calls from the opposition to address this issue and, as we report today, Fianna Fáil will propose a 20% to 40% childcare support credit. This is something the MoS has called for in the past because State policy on it is a disaster.

We have children’s allowance, but it requires no means test and means billionaires can claim the same free income as the poorest parents. And, yes, Joan Burton has confirmed that she hopes to offer a second free year of pre-school education (as long as she’s re-elected, of course), but as any parent of young children knows, this covers creche fees until lunchtime only, allowing parents to work mornings only or else face further creche costs.

This is not just about equality for women, this is about how the State values its children. It is about helping those who want to get back to work to do so. We have had enough of levy hikes and stealth taxes. This is one electioneering tax scheme that the Government should be backing.