€10,000 Tax Exemption Causing Childminders to Work For Under €195 Per Week

9th February 2006, Press Release

Deputy Catherine Murphy (Ind) has strongly criticised section 13 of the Finance Bill 2006, highlighting that childminders must work for €195 or less a week to be entitled to the much hailed €10,000 tax exemption announced in this years budget. The North Kildare TD went on to inform the Dáil that several childminders she has spoken with on the issue have labelled the Government initiative "an insult" and have questioned the value that Government Ministers place on the work they do. "Childminders are being asked to work for €195 a week, when in reality the minimum wage is more like €300 a week. This is clearly unacceptable and its time that Government introduced some realistic initiatives to tackle the current childcare crisis" according to Murphy.

The North Kildare TD also however highlighted concerns regarding the unofficial nature the work the Government was all too ineptly attempting to encourage through the €10,000 tax exemption scheme. "It raises serious issues about child protection, given that there is no registration required. In Scotland, carers who care for children for more than two hours per week are required to register and there is a training and vetting requirement as well. The county childcare committees are to have a co-ordinating function, it seems they are expected to undertake this task without any additional resources being provided, the effect will be time currently used organising training programmes for childcare providers will be diverted to administration for tax purposes hardly a child centred approach. "The childcare sector needs to be structured in such a way that child minders see their job as a career including entitlement to holiday’s pension provision etc."

The Finance Bill 2006, as announced on Budget day 7th December 2005, provides, if passed, that people caring for up to three children (not their own) in their own homes would be entitled to a tax exemption of €10,000 per year the entire exemption is lost if they earn anything over that figure. However although the Childcare Committees of each county were established to co-ordinate and support the childcare providers they are now to become agents of the Minister for Finance ensuring childminders don’t earn above the €10,000 ceiling according to Murphy. That is not child-centred and needs to be re-examined. This provision in the Finance Bill needs substantial amendment."

ENDS

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Posted by catherinemurphy on February 9, 2006. Filed under Latest News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.