A new report finds the cost of childcare is preventing more than half of people on lower incomes from working. The first ever investigation into childcare costs in Ireland finds that full-time childcare for two children a year is €16,500.
The report - "Supporting Working Families - Releasing a Brake on Economic Growth"-was carried out by the Indecon International Economic Consultant Group.
According to the report, typical full-time childcare costs range from €730 to €1,100 per month.
With 266,000 households with children under five years of age, the report says it confirms these costs are a barrier to the workforce - with 26% of parents indicating that they were prevented from returning to work or training as a result of expensive childcare.
It says these barriers are particularly severe among lower income groups, with 56% from this group indicating that childcare prevented them from looking for a job.
The report proposes two initiatives to reduce the barriers. These include a tax incentive to assist low-income parents in employment in funding the cost of childcare, and a direct payment to families related to the cost of childcare through the Family Income Supplement Scheme (FIS).
It adds that incentives would be restricted to childcare costs provided by tax compliant and HSE-registered childcare providers.
Its author Alan Gray says Ireland has the second highest cost of childcare in the OECD as a percentage of the average wage.
He told The Pat Kenny Show here on Newstalk it is hardest for single parents who have to spend almost half their earnings on childcare if they are on the average wage.
Responding to the report, a coalition of organisations for early child education - Start Strong - says there should be more focus on the quality of childcare facilities.
Start Strong Director Ciairín de Buis said "We know that investment in early childhood can yield large economic returns, through the long-term benefits of supporting children’s early learning and development, but those benefits only arise when services are of high quality. Unfortunately, the Indecon report does not address this crucial issue of quality services".
"The only quality-related proviso in Indecon's proposals is that a service must be tax-compliant and registered with the HSE" she added.
The group is backing the recommendations of the Expert Advisory Group on the Early Years Strategy, which called for an entitlement to free pre-school for all children from their 3rd birthday until such time as they enter school.
They also believe that that measures to raise quality standards must be introduced first.
