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

6. 3. Impact of Childcare Costs on Employment

7.  Evidence shows childcare costs are high percentage of average wages – 45% for sole parents  Lower exit rates from unemployment for families with children 7

8. 3. Impact of Childcare Costs on Employment

9. 4. Targeting of Incentives

10. 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.