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“THERE WILL BE a further reduction in the cost of childcare for families next year, you can be sure of that,” Taoiseach Leo Varadkar said today.
However, questions still remain as to whether Children’s Minister Roderic O’Gorman can push for a further 25% reduction in childcare fees as part of Budget 2024.
In last year’s budget, a 25% reduction in the cost of childcare under the National Childcare Scheme has been announced to much fanfare by all in government.
It came at a cost of €121 million and saved families up to €175 a month.
O’Gorman set a target of hitting a 50% average reduction in the cost of childcare over Budget 2023 and this year’s Budget 2024.
When asked by The Journal today if childcare is still a priority for government this year and whether cost reductions will lose out to tax cuts, Varadkar said one of his priorities is making sure that the government can put money back into the pockets of families.
He said this can be done in a number of ways – by reducing taxes and by reducing the cost of childcare.
“We did both in the last budget, we intend to do both in the next budget.
“There will be a further reduction in the cost of childcare for families next year, you can be sure of that. But as is the case with any particular budget matter, the figures aren’t agreed yet.”
There are no figures agreed for any tax cuts, pension or social welfare increases either, he added.
Varadkar said he is committed to the National Childcare Scheme, statin that childcare costs were reduced by 25% last year.
“We intend to reduce them again next year, that’s a further reduction on top of the 25%,” he said, but failed to state whether the 50% target would be reached.
O’Gorman said that he is keen to ensure that child minders, who aren’t covered under the current cost reduction scheme, are included.
“That’s something that we want to address,” he said.
The minister said he also wants to ensure that more vulnerable children and children with a disability can access the service earlier.
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Remember his promise to abolish USC?!?!
You’ve been in power ages. You could have done this at any stage. Jog on
25% off plus 25% off the following year is NOT a 50% reduction. It’s 44% from the initial amount. Does anybody bother with maths anymore?
@john murray: To keep his promise it would require a further 34% decrease in Budget 2024 to follow up on the 25% from Budget 2023 in order for a 2-yr decrease of 50% . I am surprised that these people can manage an economy. Juniour cert kids can manage that calculation.
@john murray: True, but it seems that they did not promise a 25% decrease in the second year: rather that they would try to achieve a 50% decrease over the two years – ‘a further 25% reduction’ appears to be the journalist’s (wrong) interpretation.
@Brendan O’Brien: it does in fairness. Back to school for the writer in that case.
@John Murray: Yes.
@john murray: For bonus points, what annual percentage would lead to a 50% reduction over 2 years?
Anybody that thinks Varadkar even remotely cares about them or their children is quite deluded!
Thats great news for families, now do something about the inability to get kids into creche due to a lack of staff and services.
My boss has been told by all the places they looked at are booked out till at least next year so has to resort to paying through the nose for a private babysitter.
Watch the scramble by the usual suspects to get into the childcare business. Next year’s declarations of interest by TDs will make for informative reading..
What if me Granny looks after the kiddos.
Is the “cut” applicable” here ?
“We did it before, and we’ll do it again”
Aboy Leo.
My old nan used to say (not babysitter gran, my other nan) that self praise is no praise. So take heed Leo.
@UCD Trinity: Is that you Stephen Ireland, I thought you had 4 grannies?
I can’t understand why they won’t just give everybody a little by reducing it getting rid of USC & if you if have children they you can use the saving towards childcare if you wish! It’s really unfair to constantly reward those with children more than those who don’t have or want to have children.
Yawn more untruths
How fitting.
Governments should focus on putting money where it is needed most like Childcare, housing and Health. Please do not reduce income tax as the money is needed elsewhere. Also their should be a wealth tax.
Why do people think any government will abolish USC. For one thing it brings in 4 Billion per year, for another it is hard to avoid paying USC as it collected on all income including rental income
Everyone pays USC so it ensures everyone is making some contribution, no matter how small. And finally it is a combination of the PRSI and Health Levy
have your say