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Indecon Report on Childcare for Working Families and Implications for Employment

Indecon Report on Childcare for Working Families and Implications for Employment. Alan W. Gray, Managing Partner, Indecon International Economic Consultants. 1. Introduction. Independent Report undertaken by Indecon International Economic Consultants

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Indecon Report on Childcare for Working Families and Implications for Employment

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  1. Indecon Report on Childcare for Working Families and Implications for Employment Alan W. Gray, Managing Partner, Indecon International Economic Consultants

  2. 1. Introduction • Independent Report undertaken by Indecon International Economic Consultants • Report was Commissioned by Donegal Childcare Committee • Main Focus is on whether Childcare Represents a Barrier to Employment

  3. 2. Existing Childcare Arrangements in Ireland • 405,000 households have children under 10 years of age, of which 266,000 under five • Wide diversity of childcare arrangements - 77% of pre-school children are cared for by parents or relatives • Non-parental childcare is very important for working parents - 68% with pre-school children where both are working full-time

  4. 3. Cost of Childcare

  5. 3. Cost of Childcare

  6. 3. Impact of Childcare Costs on Employment

  7. 3. Impact of Childcare Costs on Employment • Evidence shows childcare costs are high percentage of average wages – 45% for sole parents • Lower exit rates from unemployment for families with children

  8. 3. Impact of Childcare Costs on Employment

  9. 4. Targeting of Incentives

  10. 5. Cost Benefit Analysis

  11. 5. Cost Benefit Analysis

  12. 5. Cost Benefit Analysis

  13. 6. Exchequer Costs

  14. 7. Recommendations • Targeted childcare incentives for lower income families in employment or who are unemployed but secure employment. • Childcare amendment to current Family Income Supplement for Working Parents and Tax Allowance for low income families not eligible for FIS. • Incentives restricted to childcare expenditures provided by tax compliant and HSE registered childcare providers.

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