By Kim O'Leary
Co Kildare grandparents who help out with childcare may soon receive a €1,000 annual payment under plans outlined by Independent ministers in Budget negotiations, if they care for their grandchildren for over 10 hours per week.
In their first negotiations with Finance Minister Paschal Donohoe ahead of the Budget, Shane Ross's Independent Alliance called for the introduction of the self-assessed scheme in a bid to tackle the high costs of childcare in the country.
The so-called 'granny grant' is being described as a "grandparent and grandchild expenses reimbursement scheme", which could be worth a four-figure sum to those who help mind younger relatives.
Grandparents would apply for the payment through the Department of Social Protection - but would not be required to provide vouched expenses to receive the State cash.
Transport Minister Shane Ross said the scheme would give "serious recognition" of the important childcare role that grandparents play.
"The payment is aimed at recognising that grandparents allow young mothers and fathers re-enter the workforce by giving their children care they would not get anywhere else and which comes at no cost to parents or the State," Mr Ross told the Irish Independent.
Mr Ross has been calling for the introduction of a payment for grandparents for the past three budgets but Fine Gael has resisted the move, and Mr Donohoe has committed to costing the proposal before his next meeting with the Alliance.
Meanwhile, an Independent Alliance analysis, compiled before the last budget, estimated that almost 70,000 grandparents could be eligible for the grant, costing around €71m a year.
In a statement, it said: "These grandparents are currently making a key contribution to the Irish economy, resulting in an increased workforce, facilitating a return to employment for parents, who would otherwise be unable to do so.This childcare provision reduces the impact of high childcare costs on young families, whilst providing children with the love and attention of family members.
The Alliance has also called for the reinstatement of the €850 bereavement grant, which helps with funeral costs.
The group also told the minister to increase the VAT rate on price-gouging hotels. However, they want small hotel and restaurant owners along with the newspaper industry to be able to avail of the lower
The group also looked for an increase in the threshold for inheritance tax and a hike in gambling taxes.
It is understood that the Independent Alliance's 'Grandparent and Grandchild Expenses Reimbursement Scheme' would be operated by the Department of Social Protection, and grandparents who care for their grandchildren for more than 10 hours per week would be required to submit a form to the Department seeking to reimburse them for childcare expenses such as fuel and food costs.
However, it is not expected that grandparents will have to provide vouched expenses to receive the State payment.
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