Creches may have to publish their fees under the new childcare package

IT MAY BECOME mandatory for childcare providers such as creches to publish their fees online under the government’s new package for the industry.

In this year’s Budget, 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.

However, concerns have been raised as to whether the new subsidy will cause creches to hike up their fees.

While not all the details of the new package have been announced, it’s understood Zappone’s department will be calling for all childcare services and creches to be transparent and publish their fees.

Legislation

It is also believed that the disclosure requirement could be legislated for along with the new childcare measures.

Department sources said the move would ensure that childcare providers are transparent in their operations.

As part of the government’s overhaul of the childcare system, the department has also committed to carrying out an independent review of childcare costs in Ireland.

The hope is that publishing creche fees nationwide will ensure that parents who want to shop around can avail of the best deal in their area.

Minister for Children and Youth Affairs Katherine Zappone

PPS numbers

With questions being raised as to how means-testing parents will work once the scheme begins, it is expected a new portal will be made available on the Revenue website that enables parents to find out their subsidy entitlements using their PPS numbers.

The Department of Social Protection is to be consulted about what measures can be taken to ensure that people, particularly cohabiting couples, provide accurate data on their net incomes.

The highest income at which the subsidy will still be available to parents is €47,500 net.

The minister said the new initiative is a “radical” departure from the old childcare system, but she added it is just a first step.

In order for Ireland to reach the OECD average spend on childcare – which stands at 0.8% of GDP across the group of developed countries – it could take up to a decade.

Ireland currently spends only 0.2% of GDP on the sector and it’s estimated another half a billion euro each year would have to be pumped into the industry to reach other peer countries’ levels.

Written by Christina Finn and posted on TheJournal.ie