Fine Gael and Labour have substantially under-invested in childcare and education, with the result being crippling childcare costs for families; on average €16,500 for two children per year (47% of average industrial wage), by far the highest in the EU.
Fianna Fáil will introduce a progressive childcare tax credit (‘Childcare Support Credit’) for working parents, which would cover 20 to 40 per cent of a family’s costs of childcare.
Under this scheme, a parent earning up to €40,000 will be eligible to receive 40% of their childcare costs via a tax credit, parents earning between €40,000 and €50,000 per annum would be eligible for 30% support while parents earning between €50,000 and €60,000 would be eligible for 20% support.
We propose that the Childcare Support Credit should be a positive tax subsidy, meaning that for parents who do not pay enough tax to avail of the full tax credit return (e.g. a lone parent earning between €30,000 and €33,000), they will receive a cash subsidy payment for the balance (which could be up to a maximum of €2000).
Read and Share Fianna Fáil’s Childcare Policy