Working mothers and main caregivers are proposing a childcare subsidy to be extended to informal caregivers.

The proposal comes after The Centre for Independent Studies (CIS) surveyed 521 working mums with a majority (50 per cent) say they would rather have the kids looked after by grandparents or friends for payment.

Dr Fiona Mueller from CIS told 3AW Breakfast there is a great deal of trust for mothers with nominated caregivers.

“These mums have prioritised warmth of caregiving above all other factors in their choices,” said Dr Mueller.

“Over 20 per cent of all children aged from newborn to 12-years-old, who receive some kind of care, are looked over by grandparents.

“Good policy meets the needs of the people most directly affected.”

Click PLAY below to hear from Dr Fiona Mueller of CIS

Chief Advocate for National Seniors Australia, Ian Henschke, told 3AW Mornings it’s a tough predicament, but it could relieve pension poverty.

“It’s a tough one,” said Mr Henschke.

“We hear a lot of our members say that sometimes they love looking after the kids, and, other times they feel as if their grandkids are being put on them and they can’t say no.

“But, there may well be people who want this choice.”

With similar subsidies in place with the carer allowance, it is possible a minimal payment could work for ageing caregivers.

“You’ve already got a situation where people are being paid to care in their home,” Mr Henschke said.

“That’s the sort of thing this group is looking at.

“What this possibly is pointing to, is that there is a lot of pension poverty out there and there are also a lot of older Australians now who are out of work.

“I find it interesting when we look at older women, one third live in poverty.

“If you’re living on a pension it’s an expensive thing to do.”

Click PLAY below to hear more from Chief advocate for National seniors Australia, Ian Henschke.