The squeezed middle

CATHERINE has been at home with the children since her first child was born six years ago and the family’s biggest costs are their mortgage, household bills and petrol. They will benefit from the Home Carers Tax Credit increase of €300 to €1,500.

‘It’s something but it’s nothing compared to the funds allocated for having your child in childcare,’ she says. ‘The Government throws money at childcare providers and gives little or nothing to me.

‘It’s really disappointing to see so much money ploughed into the same industry again instead of making payments directly to parents and letting them make the decisions around whether to care for their children at home, put them in a creche, hire a childminder or pay a granny.’

Catherine claims Budget childcare incentives lead to a hike in creche fees and added: ‘The system doesn’t seem to be working for anybody.’

She says their family income is ‘always slightly over’ the eligibility threshold for working family payments. ‘We are the squeezed middle,’ she said. ‘We get children’s allowance and Home Carer Tax Credit, which doesn’t even come close to what we have lost because of the unfair tax individualisation policy, which means I am unable to transfer my total tax credits to my husband who is the sole earner in our family. This results in our family’s income being taxed at a higher rate than families with two incomes.’