Giving parents a tax credit for childcare would have cost nearly €600m

A TAX CREDIT for parents who incur childcare costs would cost the Irish Exchequer between €290 million and €590 million per year.

According to the Minister for Finance Michael Noonan a tax credit was considered ahead of this year’s Budget, but it was deemed to be too costly.

This week, Children’s Minister Katherine Zappone announced a new childcare scheme that will provide means-tested subsidies towards the cost of childcare for children aged six months to 15 years.

Universal subsidies of up to €80 a month or €900 a year for all children aged between six months and three years were also announced.

Zappone told TheJournal.ie that means-testing and increasing child benefit was not on the table during her Budget negotiations with Taoiseach Enda Kenny.

Referring to findings from the interdepartmental working group on future investment in child care in Ireland, Noonan said a tax credit was not recommended.

Read the full article on TheJournal.ie