Childcare for low-income families ‘priority’, says Katherine Zappone
The Independent minister emphasised that she wants to extend benefits to the so-called ‘squeezed middle’, but this is dependent on resources allocated to her in the budget and beyond.
Fine Gael ministers and backbenchers fear that State-funded childcare supports only going to lower income families in the budget could anger other families on higher incomes.
Ms Zappone met Finance Minister Michael Noonan and Public Expenditure and Reform Minister Paschal Donohoe about the impasse this week, as all sides attempt to agree a compromise for the budget.
The exact nature of subsidised childcare provision in the budget remains unknown. A suggested threshold of €47,000 in joint income per family for those who benefit has worried Fine Gael backbenchers.
“It must spread out to others too, you have middle-income earners who are really in need of getting help for their childcare costs,” one Fine Gael TD told the Irish Examiner.
Mr Noonan told the Dáil this week that he has made no mention of any subsidies for childcare being included in the October 11 budget.
Ms Zappone made no apologies for wanting to help lower income families with childcare costs first.
“One of the key aspects of what I want to do though, starting in 2017, is to begin a new more effective way to target families, especially on low income, in terms of subsidies,” she said yesterday.
“But that’s part of the package, I would hope to be also able to increase support for children in every family but as I have said before, that is dependent on the resources that are given to me. I make no apology to focus some of my initial efforts in relation to a new scheme to children from low income families.
“There are 136,000 children who are living in conditions of poverty — that figure is equivalent to the size of the city of Cork.
“I think everyone in this country would accept the fairness and the justice in beginning there. With more investment it would be my ambition to increase the subsidisation for every child.”
Childcare provider services will be streamlined next year, to reduce administrative costs and allow families to easily identify what level of subsidy they may get. This system will see families using a PPS number online to identify what subsidy they get.
Sources close to Ms Zappone accept it could take a number of years to roll out a full subsidy system for all families.
Meanwhile, community, charity, and business groups presented their budget wish lists to Mr Noonan and Mr Donohoe at Government Buildings yesterday.
Groups who met the ministers included Ictu, Ibec, the Construction Industry Federation, the community and voluntary pillar, as well as farming groups.
Exchequer figures for the third quarter, to be released next week, will give final indications of what funds are available to spend in the budget. Monies taken in from Vat, corporation tax, income tax, and excise duty will help inform the Government of the levels of possible spending.
A spokeswoman for Mr Donohoe last night said he would now begin the process of whittling down budget demands from ministers, which started out several weeks ago at €3bn for the estimated €1bn in fiscal space.
