Extending the National Childcare Scheme to childminders working in their own homes would save thousands of families almost €100 a month, according to a new study by the ESRI.
However the extension of the scheme would cost up to €121 million a year and better-off parents would disproportionately benefit from such a move.
The report suggests the cost would likely be low initially but then increase over a number of years as more childminders registered themselves with Tusla and parents availed of the subsidies.
The authors cite previous research which suggests such an expansion of the scheme could reduce demand for places in creches and other day care centres by up to 20 per cent, increasing availability for parents chasing places.
Overall, the report acknowledges the potential cost would depend on the levels of take-up which, it says, are difficult to estimate.
It models a number of possibilities resulting in expected annual costs ranging from €35 million to €121 million, which would represent an 8-29 per cent increase in the current funding required for the scheme.
“Reform to the NCS which targets childminders would benefit middle-income households the most, reflecting the fact that households that use childminders have higher average disposable income than households using formal or unpaid care,” the authors of the report, Extending the National Childcare Scheme to Childminders: Cost and Distributional Effect, write.
