With 63% of working mums struggling to manage childcare costs and 84% of stay-at-home mums unable to work due these high costs, Irish families are desperately in need to help.
Today, MummyPages.ie is recommending the government introduces a tax-free childcare credit in the forthcoming Budget to help low and middle income families.
Research from the MummyPages.ie parenting community also revealed that:
- 35% of mums are using au pairs to help reduce childcare costs but would prefer to place their children in professional childcare or after-school services.
- 91% of mums believe that the introduction of a tax credit for professional childcare services would improve their financial situation.
- 48% of working mums lean on the generosity of grandparents and other family members to bridge the childcare gap.
The pre-Budget submission sent in by MummyPages.ie to government offices today, proposes that families can claim marginal tax relief and a tax credit of up to €1,500 per child a year in tax-free childcare. Further details of the proposal include:
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Childcare Services
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Annual Tax Relief
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Qualifying Criteria
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Annual Qualifying Income
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Registered Full and Part-time Professional Childcare Services
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20% Marginal Tax Relief up to maximum €7,200
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Lone Parent and Dual-income families of children under 5 years.
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Self-employed & PAYE workers.
Each parent’s income level must be less than or equal to €100,000
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Registered Before and After-School Childcare Services
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€1,500 Tax Credit per child
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Lone Parent and Dual-income families of children under 12 years.
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Self-employed & PAYE workers.
Each parent’s income level must be less than or equal to €100,000
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Commenting on the proposal, MummyPages Mum-in-Residence Laura Haugh says: “Our proposal to introduce tax-free childcare for families where both parents work outside of the home will help many families who need two incomes to meet their mortgage requirements.
“It also introduces choice to mums who wish to work outside of the home where up until now many mums have reported feeling trapped by childcare costs. Very often this scenario sees the family forced into making a decision for the higher income earner, who is more often the male partner, to be the one to continue working.”
MummyPages.ie estimates that their tax-free childcare proposal could save a low to middle income earning dual-income family with two children around €2,190 a year.
Research shows that parents who can return to work after having children have much better career and income prospects for the rest of their life. Access to professional childcare for all is crucial to Ireland’s future economic and social success.
