Grandparent payment for childcare a possibility

The possibility of State payments to grandparents involved in childcare is to be examined as part of a major review of national…

The possibility of State payments to grandparents involved in childcare is to be examined as part of a major review of national childcare policy, it has emerged.

The review, which has been launched in recent months, is examining a series of issues, including tax credits and additional childcare payments to low- income and single parents.

It will also examine the idea of a payments system for childcare by relatives such as grandparents, similar to the carer's allowance scheme, where family members who mind incapacitated adult relatives are entitled to approximately €8,000 a year.

The advantage of such an allowance is that it would help solve a major problem of supply, although it may not be seen as a long-term and viable option.

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Senior civil servants from five Government departments are involved in the review of the sector, which has now become a Government priority in the wake of the recent byelections, where childcare emerged as the dominant issue.

The National Economic And Social Council has also been asked to study the possibility of creating what is being called "child benefit two" - an additional child benefit payment to low-income families and single parents, created from two separate existing payments that officials believe are not working.

It is understood, however, that the continuing review will not be looking at making changes to the current child benefit system, where monthly payments of at least €131.60 a child are made tax free regardless of means, at a cost of €2 billion a year.

Speaking to The Irish Times yesterday, Minister for Social and Family Affairs Séamus Brennan said the review would also be examining informal childcare arrangements, which often see grandparents involved in the minding of their grandchildren.

He said the issue of a carer's payment in such cases could be a possibility.

"It's at a very early stage, and is just a broad area to be examined, and I don't want to prejudge the working group," he said.

Another key issue to be examined by the group will be an improvement in the supply of child places, including the possible expansion of a local authority childcare system, especially for low-income families.

"It's a complex issue - there are demand and supply side problems," said Mr Brennan. The issue was one of the most important policy areas facing the Government in the next two years, he said.

He said it would not be solved simply by tax allowances for building creches, which would serve to drive up building costs.

Tax credits for childcare alone would also drive up the costs of childcare, Mr Brennan said.