Childcare costs plan ‘must also benefit’ middle earners

Government considering means-tested scheme to pay bills directly to providers

Any schemes to reduce the cost of childcare for families must benefit middle-income earners as well as those on lower wages, Fine Gael sources have said. The Government is considering a radical new system of subsidised childcare from Minister for Children Katherine Zappone that would mean the State pays a portion of a family’s bills directly to childcare providers. Ms Zappone has tabled the plan for inclusion in next month’s budget.

It is likely, however, that the initial rollout of the income- tested scheme, expected to start next September, will focus on lower-income families. In some cases, they could see almost all of their childcare costs covered.

Fine Gael sources have, however, stressed that the so- called “squeezed middle” must also benefit, although it is acknowledged it will take a series of budgets to fully introduce the plan. During the term of the last government, Minister for Finance Michael Noonan defined the “squeezed middle” as those who earned between €32,800 and €70,000.

Childcare proposals

Taoiseach Enda Kenny and other Ministers were briefed on the outline of the childcare proposals earlier this week and an initial indicative figure of €47,000 income a couple was used – but sources stressed this was only an example and would not be the threshold that would apply when the plan was announced.

Read the full article on The Irish Times