Baptiste Morin / Photo credit: Thomas SAMSON / AFP
modified to
06:28, September 07, 2023
Two investigative books are coming out this Thursday and Friday to denounce acts of abuse spotted in private nurseries. If these private establishments have become real profit machines, the reports of the General Inspectorate of Social Affairs attest to this, these crèches are largely financed by public funds.
After nursing homes, nurseries… Europe 1 revealed on Wednesday how private establishments had become profit machines. This Thursday, we go further and look at their funding. The reports of the General Inspectorate of Social Affairs attest to this: private crèches are largely financed by public funds.
The State helps from the creation of the crèche and the CAF can cover up to 80% of the installation costs. The private manager then only has a small part of the bill to pay. And it does not stop there. The operation of private crèches is also financed by CAF, up to 35%. This is done through the Single Service Delivery (PSU). It is an aid paid according to the number of hours invoiced to the parents. This aid also encourages crèches to practice overbooking. It is a perverse effect.
Business and family tax credit
The rest is financed by families and businesses, but they are also supported by the state. This time, it is via a tax credit, up to 50%. And the company can also deduct from its corporation tax the charges of its expenses. In the end, the state helps companies up to 80%.
According to a report by the consulting firm Ernst & Young, public money represents more than half of the financing of a private crèche. In a report in 2017, the General Inspectorate of Social Affairs even estimated that direct or indirect public aid for private crèches could represent more than 130% of the cost of care.
fr