Many parents say childcare costs equates to a second mortgage. 

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The Claire Byrne Show 13 min 5 speakers 5 chapters transcribed 4 months ago
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Unknown 0:01
The Clare Byrne Show on Newstalk. With Aviva Insurance.
Claire Byrne 0:09
childcare costs are four times more expensive here than they are in Germany. Many parents say it equates to a second mortgage. Daniel Ennis, Social Democrats Councillor for Dublin North Inner City, is calling for the issue of costs to be tackled by the government, saying it's a financial burden that many can't afford. And I'll speak to Daniel in just a moment. But first, I want to hear what the childcare system is like in Germany. So let's go to Hamburg and to Rob Hyde, who's a freelance journalist living near the city, who is on the line. Good morning, Rob.

Why are childcare costs in Ireland compared to a second mortgage?

Rob Hyde 0:39
Good morning.
Claire Byrne 0:40
So we're very interested to hear how the childcare system works in Germany. Can you explain it to us?
Rob Hyde 0:46
Yeah, sure. I think the main difference between Germany and Ireland on this front is that Germany's childcare system is mainly funded and organised by the state. And so the benefit for parents is that it keeps costs much lower for Whereas in Ireland, if I understand it rightly, there's more reliance on private providers. And in fairness to that system, it does make childcare, I think, more widely available than Germany, but often more expensive.
Claire Byrne 1:16
So there's a problem as well, is there, in Germany with accessing places?
Rob Hyde 1:21
There really is. I mean, you know, Germany's got the 16 federal states and the thing is, each local authority uses its own rules based on income, hours of care, age of the child, and all this leads to a kind of patchwork system of wildly differing rates. That being said, as you said in your introduction, I think if you compare what the parents have to pay things still look an awful lot better in Germany. So if it's a very low income or a zero income family, the state pays everything. If it's a low income household, so sort of earning under €30,000, they pay up to €200 per month. If it's middle income, so if you're earning €30,000 to €70,000, you pay around €300 to €400 a month. And then higher income, so 70,000 upwards, you're paying sort of 400 to 600 euros a month, depending on the city.
Claire Byrne 2:26
OK, but 600 or thereabouts is the upper limit.

How does the childcare system in Germany differ from Ireland?

Rob Hyde 2:31
Absolute upper limit. That's right.
Claire Byrne 2:34
So who pays the wages then of the workers in the childcare facilities, Robb?
Rob Hyde 2:40
That's the state. The state pays for the facility and for the staff. The only thing which parents really would have to pay as an additional cost would be for meals. But then again, it really depends where you are. So in Berlin, for example, Berlin's got free childcare. And parents only have to pay a small monthly amount for meals, about 23 euros. And you've also got the federal state of Mecklenburg-Vorpommern that's in the in the northeast. And therefore, under three year olds, it's also totally free apart from paying for meals.
Claire Byrne 3:14
And I have a listener who wants to know what age do the children go to play school or preschool and what age do they start school?
Rob Hyde 3:22
Well, so primary school is six starting then. But in terms of everything before that, it's similar to Ireland.
Claire Byrne 3:32
And so the childcare kicks in, the state and subvention kicks in as soon as the parents decide that they want to go back to work. So the child could be what, six, nine months old, maybe 12 months old?
Rob Hyde 3:47
Yes. The only problem is Germany being such a sort of intensely bureaucratic country, it means that the mechanics of everything moves very slowly. And so you get very long waiting lists and people tend to apply sometimes two years in advance or even before the child is born. um and i i think that really is what one of the key problems in the system and there are some some significant problems with the german system so the the biggest one has to be the shortage of child care places so on the one hand you've got this fantastic rule from 2013 which says um everyone has a legal right uh to child care so starting age one

What are the financial implications of childcare in Germany?

Rob Hyde 4:33
But at the same time, in Western Germany, there's basically a critical shortage of places because demand is higher than supply. And then in Eastern Germany, you've got quite a strange situation whereby they're just not having enough children.

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