State programs to support parents: subsidies and benefits
Balancing work and family responsibilities can be challenging, especially for parents who are both working or actively seeking employment. To ease the financial burden of childcare and support working families, many countries have introduced government programs that provide subsidies and benefits to parents who want to find a nanny to care for their child. Ukrainians with temporary asylum status can also benefit from such programs if they want to find a nanny for their child.
In this article, we will take a look at some of these programs in different countries and dive into the details of each of them.
In the UK, parents who are working and looking to find a childminder may be eligible to register for a government program known as Tax-Free Childcare, which offers working parents a 20% premium on the fees they would pay to a childminder, effectively reducing the overall cost of childcare. How does the program work? You pay £8 to the nanny, and the government pays another £2. For more information on the terms of the program, please visit
https://www.gov.uk
In Canada, parents who want to find a nanny can expect to reduce their taxable income and the taxes they pay through the Child Care Expense Deduction program.
How does the program work? In their tax return, parents report the amount they spent on childcare, and accordingly, this part of the funds is not taxed and is excluded from the parents' gross income. For more information on the terms of the program, please visit
https://www.canada.ca
Germany offers a number of subsidies for working parents who want to find a nanny. The program is known as "Kindergeld". Depending on the parents' income level, the number of children and the age of the child, the government provides a subsidy that is calculated individually and can be spent on paying a nanny for childcare.
For more information on the terms of the program, please visit
In the Netherlands, working parents can apply for assistance under the state childcare program known as Kinderopvangtoeslag. The assistance is provided to cover the costs if parents decide to find a nanny for their child or to compensate for the cost of a kindergarten. The amount of childcare assistance depends on factors such as family income, the number of children and the number of hours of childcare required.
More information about the program is available at
https://www.belastingdienst.nl
Australia offers a means-tested childcare subsidy based on factors such as family income, the type of childcare used (e.g., whether you want to find a childminder or a daycare center), and the number of hours of work or schooling the parents are doing. This program is known as the Child Care Subsidy (CCS) and more information can be found at
https://www.servicesaustralia.gov.au
In Sweden, parents can take advantage of a government program known as "Barnomsorgsstöd" to cover childcare costs. The program is designed to give parents more flexibility in choosing childcare that meets their individual needs. This childcare voucher system is available to all parents with children aged 1 to 12 years. It does not depend on income level, and the voucher can be used to cover the costs of various childcare options (you can find a nanny for your child and pay part of the costs with a voucher). More information can be found at
https://www.skolverket.se
France has created a state program known as "Prestations d'Accueil du Jeune Enfant (PAJE)" which offers financial support to parents who want to find a nanny to care for their child. It includes a monthly allowance known as the "Complément de Libre Choix du Mode de Garde" which helps working parents cover childcare costs. The program also provides an additional benefit known as the "Allocation de Rentrée Scolaire", which helps to send older children to school.
More information is available at
https://www.caf.fr
Denmark offers a childcare subsidy known as "Børnecheck", which provides financial assistance to parents who want to find a nanny for their child. The amount of the subsidy depends on the family income, number of children, etc.
More information can be found at
https://www.borger.dk
In the United States, there is a program known as the Child and Dependent Care Tax Credit, which allows parents who want to find a nanny to care for their child to be eligible for a tax credit that reduces their overall tax liability. The tax credit can be applied to expenses related to the care of children under the age of 13, including expenses incurred for nannies, kindergartens, and summer camps.
More information is available at
https://www.irs.gov
Poland has a program called Rodzina 500+, which provides financial support to families with children. Although the program is not intended for parents who want to find a nanny, it provides a monthly subsidy to eligible families for each child in their care. This subsidy can help offset the costs associated with childcare services.
More information is available at
https://www.gov.pl
The Czech Republic provides assistance to parents in need of childcare through a program known as Příspěvek na péči o dítě. This program offers financial support to parents who want to find a nanny for their child. The amount of the subsidy, as in other countries, depends on factors such as family income and the age of the child.
More information is available at
https://www.mpsv.cz
In Slovakia, the government offers a parental allowance known as "Rodičovský príspevok" to support parents with childcare costs. Although it is not specifically designed for parents who want to find a nanny to care for their child, it provides financial assistance to parents during the first years of their child's life. It aims to help working parents balance their professional and family responsibilities.
More information is available at
https://www.employment.gov.sk
Hungary provides childcare assistance known as "Gyermekgondozási díj". This program offers financial support to parents who want to find a nanny for their child. The amount of the subsidy, as in other countries, depends on factors such as family income and the age of the child.
More information is available at
https://www.allamkincstar.gov.hu
Romania offers a state aid to support parents known as "Ajutorul de Stat pentru Creșterea Copilului". While the program is not intended for parents looking to find a nanny, it does provide a monthly subsidy to eligible families for each child in their care. This subsidy can help offset the costs associated with childcare services.
More information is available at
https://social2.ro
Estonia offers assistance through a program known as "Lapsehooldustasu" to support parents with childcare costs. This assistance provides financial support to parents who want to find a nanny. The amount of the allowance depends on the parents' income and the number of children in care.
More information is available at
https://www.sotsiaalkindlustusamet.ee
Lithuania has a state program known as "Valstybinė vaiko pašalpa" to help families with the costs of raising children. Although this assistance is not specifically intended for parents who want to find a nanny, it provides financial support to parents during the first years of a child's life. The amount of assistance depends on various factors, including family income and the number of children in care.
More information can be found at
https://socmin.lrv.lt
In Finland, parents who want to find a nanny can register for a childcare allowance program known as "Yksityisen hoidon tuki". This program supports families who prefer individualized care for their children.
More information is available at
https://www.kela.fi
In Italy, a parental support program known as "Bonus Sociale" provides financial assistance to families with dependent children. The Social Bonus aims to ease the financial burden on working parents if they decide to find a nanny to care for their child.
More information can be found here
https://www.arera.it
Spain offers a childcare voucher program known as the "Cheque Guardería" to help parents with the cost of childcare. This program provides vouchers that parents can use to pay for childcare services. The vouchers are usually provided through employers or government initiatives and are intended to help parents achieve a work-family balance.
More information is available at
https://www.comunidad.madrid
Portugal provides social assistance through a public childcare program known as "Abono de Família para Crianças e Jovens". This assistance includes financial support for parents who want to find a nanny, as well as covering other childcare costs. The amount of assistance depends on factors such as family income and the age of the child.
More information can be found at
https://www.seg-social.pt
In Ukraine, parents can take advantage of the national parental support program "Childbirth Assistance". The amount of assistance is UAH 41,280. The payment is made in a lump sum of UAH 10,320, and the remaining amount is paid over 36 months in equal installments (UAH 860 per month).
You can also use the Municipal Nanny program, which is an opportunity for parents to find a nanny to care for a child under three years of age and receive reimbursement for her services from the state. The compensation for the service is paid monthly in the amount of the subsistence minimum for children under the age of six. In 2023, this is 2272 hryvnias. Compensation can be received for each child looked after by a nanny. Parents need to apply to the social protection authority within a month of concluding a contract with a nanny.
Parents who pay fees for their children in domestic pre-school, secondary school or out-of-school, vocational and higher education institutions (the list includes kindergartens, sports and music schools) are entitled to a tax rebate. This is regulated by Article 166 of the Tax Code of Ukraine. It is better to apply for a tax rebate for the parent who is officially employed and receives the highest salary. The amount of the social benefit directly depends on the amount of taxes paid, but it cannot exceed 18% of them.
The last program is known as "Money Follows the Child," which is locally applied, as funds are allocated from local budgets. The program provides compensation for parents' expenses for a private kindergarten. Today, this program is operating in Kyiv and Ternopil, and it is not known when other Ukrainian cities will be involved, as the decision to implement this program is made by regional state administrations.
The program "Money Follows the Child" is the same name as the program for the rehabilitation and recreation of children affected by military operations in Ukraine. In order to use the service, parents (or persons in loco parentis) of such children will be able to receive a card with a special mode of use, which will be credited with funds in the amount of five subsistence minimums (UAH 14165) for children aged 6 to 18.
Parents (or persons in loco parentis) will be able to use this money to purchase a voucher for a child's rehabilitation or recreation in one of the highest category camps located in the Carpathian region (Lviv, Ivano-Frankivsk, Zakarpattia, Chernivtsi, and Ternopil regions).
How to use this program? If the recipient of budgetary assistance has the Diia mobile application installed on his or her phone, he or she will automatically receive a notification about the possibility of receiving such assistance.
We hope that this article has been useful for Ukrainians who are forced to live abroad. We have explored the programs that exist in the world for parents and are important tools to support them. They help to reduce the financial burden on families and create conditions for ensuring proper care and development of children.