Why have just 172 childminders registered for a €10,000 tax-break? Carl O'Brien, Social Affairs Correspondent, finds out
When Minister for Finance Brian Cowen announced a long-awaited €10,000 tax-break for childminders on Budget day last December, officials expected a massive surge in demand for the incentive. Six months later, they're still waiting.
The measure has barely prompted a trickle of interest. Even in parts of the State where childcare is in massive demand, the number of queries about the scheme (550) is extraordinarily low. And even fewer (172) have chosen to actually avail of the tax-break.
To put the figures into context, just 172 (or 0.4 per cent) out of an estimated 37,900 childminders have registered to avail of the tax incentive since the Budget. The Government, however, argues that on top of the 1,000 childminders who registered prior to the Budget, the numbers are a "significant boost" to the numbers registered and could reach 2,000 by next year.
So what's going on? The reasons are manifold, but the low take-up has much to do with a fear among childminders over leaving the informal world of the "black market"; alarm over the prospect of being over-regulated; and the potential of losing money if they earn more than the tax-exemption threshold.
If an individual earns just €1 above the €10,000 tax-exemption limit, for example, their entire childminding income becomes subject to tax. This is hardly much of an incentive, especially when a childminder working a 35-hour week has to earn about €5 an hour to avail of the tax exemption, compared with the minimum wage of €7.65 an hour.
To avail of the incentive, childminders must also notify their local county childcare committee that they are providing a childminding service. Many fear, however, that this is the first step towards regulation and inspection.
The number of childminders opting to register and subject themselves to the glare of public scrutiny has also prompted concern over how little we know about childminders.
Despite being one of the most common forms of childcare in the Republic, it is one of the most loosely regulated. Individuals caring for fewer than four children in their own home are not subject to any regulation, mandatory training or Garda clearance. Yet an estimated 70,000-80,000 children are placed with childminders every working day.
In the UK, on the other hand, the regime is vastly different. All childminders' homes are inspected regularly to ensure they are safe and suitable for young children. They must also be insured, have first-aid training and be checked by the police, as must anyone else aged over 16 who lives or works in the childminder's home.
As well as induction training, many childminders undertake childcare qualifications or attend workshops on subjects such as nutrition, sign language or business management.
The main representative group for childminders, Childminding Ireland, says it supports any measures that would reassure the public over standards of care in the sector.
Childminding Ireland spokeswoman Mary McGrath says: "Some childminders have been terrified at the prospect of inspectors coming to examine their home or their fridge or whatever. But I do think the tide is turning. Increasingly, they realise that no one is waiting in the long grass to catch them. Instead, there are lots of benefits to regulation."
The group says childminders who register with their local county childcare committee can access training, support and grant aid. Many committees are organising free courses on first aid, child development, making nutritious meals and other practical aids. There is also a range of grants available for childminders.
Groups such as Childminding Ireland don't want just any form of regulation. They want something that will encourage childminders to maintain high standards, but not standards that are so onerous they would cease providing a service. They say there has been too much focus by the State on providing more places in creches rather than on supporting childminders, which offer consistent bonding in a family setting.
"There is a lot of research recently in the UK and Germany that shows that childminding is a very beneficial setting," says McGrath.
"It replicates the family and there isn't a large cohort of children competing for care and attention. There is also likely to be a greater continuity of care. It's not unusual, for example, for a childminder to be there right throughout their childhood."
It's also, arguably, better value for money. The average national weekly cost of childcare is €120, according to new CSO figures. In terms of hourly costs, childminding for pre-school children is €4.06 an hour, compared with €4.82 for a creche or Montessori school. However, the data is a year old, and the figure is closer to €200 per week per child in some of the bigger urban areas, depending on the number of hours the child is being minded.
The Government will soon have to grasp the issue of subjecting this major aspect of childcare to some form of regulation. It is allocating €575 million over the next five years to a programme of childcare investment aimed at providing more facilities and placing a stronger emphasis on quality measures for childminders. However, the first step towards promoting greater quality in the childminding sector - through the €10,000 tax-exemption - has not been the most auspicious of beginnings. The Government will hope any further measures will be more successful.