HUNDREDS OF CHILDCARE providers who say they have been marginalised by the Government’s new Core Funding model closed today in protest, leaving thousands of parents across Ireland without childcare.

The Federation of Early Childhood Providers (FECP) warned that around 500 of its members will close ECCE childcare services tomorrow as a result of funding and policy issues they feel were “inadequately addressed” in Budget 2023.

The new core funding model for the sector, introduced by Children’s Minister, Roderic O’Gorman, has seen smaller providers lose Higher Capitation and support payments, leaving their ECCE services completely unviable, according to the Representative group.

Providers said they feel they have no option but to take the action, with a possibility of “rolling” closures in the run-up to Christmas.

Closures are countrywide, with some providers attending a protest outside Leinster House. 

A statement FECP claims that Minister O’Gorman pushed through Core Funding plans without proper consultation or planning.

“The lack of respect is becoming very evident. Service providers and parents are not standing in a unified voice.”

Chairperson of the FECP, Elaine Dunne, said that small childcare providers are at the biggest disadvantage.

“It is ironic that a Government purporting to support local enterprise and SMEs cannot properly fund small businesses in the childcare sector.  And these are the very ones running the State’s own childcare initiatives.  ECCE is about early learning for pre-schoolers, and it facilitates parents contributing to the labour market. 

“The current situation where the Minister is determined not to engage on a solution just flies in the face of industry and enterprise on so many levels,” Dunne maintains.

Minister for Children Roderic O’Gorman said the protests are “unwarranted”, and that the first year of this model is “a first step”.

“I think it’s really disappointing that the closures are going ahead today and I believe that these closures are unwarranted,” he told RTE’s Morning Ireland.

“Government, and myself as minister, we’ve prioritised investment in childcare and Budget 2023 will see for the first time ever over a billion euro being spent on childcare.

“With that money, we’re looking to deliver for parents in terms of reduction in fees; we’re looking to deliver for the childcare staff; we’ve secured a pay agreement that will see 73% of them get a pay increase; and in particular, we’re looking to deliver for providers of full-day childcare and providers who are working in ECCE only.

“This year we’re providing €259 million in core funding. It’s a massive increase in core funding.”

Surveys by the representative group indicate that somewhere in the region of 260 childcare services across Ireland are expected to close completely in the coming year, due to rising energy costs, staffing overhead and other inflation-linked pressures.

A key issue for the FECP is that the UNICEF recommended level of childcare sector expenditure per year is 1% of GDP, meaning over €4 billion per year should be spent on early childhood care and education.

Currently Ireland stands at .3% of GDP spend, with €1 billion committed, which the FECP believes “illustrates Government’s lack of concern for children and for working parents, especially outside of the major urban centres”.

“Minister O’Gorman’s policies serve to obliterate small childcare providers in low density rural locations, that rely on ECCE payments,” the FECP statement concluded.

With additional reporting by PA