Terence Flanagan (Dublin North East, Independent)
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123. To ask the Minister for Children and Youth Affairs if he will introduce a tax credit scheme in the Finance Bill to cover the significant costs of child care; his plans to keep child care costs as low as possible; and if he will make a statement on the matter. [42305/14]

James Reilly (Dublin North, Fine Gael)
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The introduction of a tax credit scheme in the Finance Bill is a matter for Government and the Minister for Finance in the first instance.

I am aware of the relatively high cost of childcare in this country and of the difficulties that this presents, particularly where both parents are in employment outside of the home. To help address the issue, funding of €260 million is provided annually by my Department to support the implementation of a number of targeted childcare support programmes that assist parents in accessing quality and affordable childcare. More than 100,000 children benefit from these programmes each year.

The question of tax allowances for working parents who incur childcare costs was considered prior to the introduction of the targeted childcare supports which are now in place. A number of issues emerged at that time which did not favour the introduction of tax relief for childcare. This approach would not benefit parents working in the home and could, therefore, be seen by some as discriminatory. Tax reliefs would favour the higher-paid, and those on the minimum wage or in part-time work would not be in a position to benefit to the same extent. Many parents use childminders or relatives to meet their childcare requirements and may not be in a position to obtain receipts, making it impossible for them to establish their entitlement to tax relief. There is also a view that the introduction of tax credits could lead to increased prices and therefore have limited impact in terms of savings to parents.

I consider that the childcare programmes implemented by my Department, which include the universal free pre-school year, the Community Childcare Subvention programme and the Training and Employment Childcare programmes, are a fairer way of supporting parents who require childcare support.