Parents who use childminders could be €4,500 better off if Government fast-tracked National Childcare Scheme funding, report says

In a new report today, Chartered Accountants Ireland calls on the Government to enable these parents to avail of state subsidies already on offer to those with children in creches.

The report said this would also significantly increase the attractiveness of returning to work.

It says most childminders are not registered with Tusla, so parents who employ them do not benefit from National Childcare Scheme funding. Based on subsidy rates available under the scheme, it says a mother of two on €45,000 a year could save up to €4,500 a year.

The accountancy body calculates that a mother of two on an average annual wage of €45,000 who pays €24,000 a year for childcare is left with just €235 a week after paying taxes and childcare fees.

It said this makes returning to the workforce a “difficult economic proposition”.

Chartered Accountants Ireland said expediting government plans to enable parents who use childminders that are not registered with Tusla to access the National Childcare Scheme would give parents of up to 80,000 children easier access to subsidised childcare.

It notes that creche places are very difficult to get.

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Cróna Clohisey, tax and public policy lead at Chartered Accountants Ireland, said she has had to rely on family help to provide childcare for her 18-month-old daughter and four-year-old son. Her husband works part-time.

“I feel lucky we haven’t had to go through the whole process of hiring childminders,” she said.

“I have friends who have had childminders for a few months, and then they’ve had to find someone else. I feel lucky that we can rely on family. I wouldn’t rule out having to use childminders in the future as it’s not fair to rely on family forever, but I wouldn’t even know where to start.

“If the subsidy was there for childminders, it would probably make it more financially viable for us to do that. A subsidy of €4,500 would make it easier for myself and my husband to work full time.”

The Chartered Accountants’ Supporting Working Parents report says the Republic of Ireland and the UK regularly feature among countries with the highest costs for full-time childcare across Europe.

The report finds that childminder care is the second most widely used form of paid non-parental childcare in Ireland.

It notes that unless the childminder is registered with the State’s child and family agency, Tusla, parents using childminders cannot avail of national childcare scheme subsidies. It is estimated that less than 1pc of childminders are registered with Tusla.

“While we recognise that the National Action Plan for Childminding 2021-2028 provides a pathway for opening the NCS to childminders, Chartered Accountants Ireland is calling on the Government to expediate this process and enable parents to avail of much-needed supports as soon as possible,” the report said.

A Department of Children spokesperson said the National Action Plan for Childminding 2021-2028 commits to opening the National Childcare Scheme to childminders at the earliest possible opportunity, though it will be necessary first to develop and introduce childminder-specific regulations, and to give childminders adequate time and support to meet regulatory requirements.

“In line with the Budget 2024 announcement, it is intended that from autumn 2024, families using childminders will be able benefit from the NCS,” the spokesperson said.

They said the restriction of public funding to Tusla-registered providers helps ensure that funding is only provided where there is assurance of the quality of provision.