CHILDCARE FEES WILL fall for the vast majority of parents under a “big movement” in September’s budget, Tánaiste Leo Varadkar has said. 

The Journal reported in April that the Government was planning to focus on reducing the rocketing cost of childcare in the budget. 

A recent survey revealed that, on average, parents pay out nearly €800 per month per child for childcare.

The Annual Early Years Sector survey found that the average weekly fee nationally per child for full day childcare is €186.84.

While the €221 million ‘Core Funding’ scheme for childcare providers will set minimum rates of pay across the sector and ensure no increase to fees in 2022/23 above September 2021 rates, Varadkar said increased subsidies will reduce costs considerably for parents. 

Freezing fees ‘not enough’

The increased funding for the sector aims to improve the quality of childcare and freeze  fees, said the Tánaiste.

He added:

“That’s not going to be enough. What we want to do, and there’s agreement across all three parties, is a big movement in childcare in the budget, that would see fees fall for the vast majority of parents. That makes a lot of sense, because it’ll help with the cost of living.

Often those who pay a lot for childcare are also the ones paying the rent and the mortgages and commuting. So it’s a particular group that need particular help, I think when it comes to the cost of living. It’s the right thing to do in terms of easing the burden of inflation on families.

“But also, it makes a lot of economic sense, because we’ve staff shortages everywhere. And if we can enable more people to choose, and it will be a choice, to go back into the workforce sooner or to do more hours, that will be a very positive thing that we’d like to do.”

Varadkar said long before inflation became an issue, there were things in Ireland that were “out of kilter” and more expensive than other European countries.

“Cost of transport is one, and we’ve made a move on that. Childcare is another one. And I think we need to make a significant move on that,” he said. 

Childcare closures

His comments come as one of the country’s leading childcare providers, Tiger Childcare, warned of further closures and staff reductions in the sector due to a delay in a funding scheme.

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It is understood that Employment Regulation Orders (EROs) must be signed off on before set minimum rates of pay across the sector can be rolled out. However, this is an independent process set out under industrial relations legislation and requires the establishment of a Joint Labour Committee. 

Jennifer Carroll MacNeill, Fine Gael Spokesperson for Equality, said the Department of Children “have got to get this right to see a meaningful reduction of costs for parents and secure the availability of places”.

“This is what childcare providers want, and what parents need, and it is all the more urgent during this cost-of-living crisis,” she said. 

She said the Department “needs to get serious and recognise the pressure this creates for families”.

“Let’s hope that in the run up to the Budget, the two wings of the department can work out the policy cohesion and funding delivery to make life easier for working people, especially working women coming back from maternity leave,” she added. 

“It is important to hear what providers are saying. If they’re saying the current core funding scheme is too difficult, then the Department must listen,” she said, adding that she has been made aware of at least two childcare facility closures in her own constituency in the last month.

“Parents, in particular women I have spoken to, are struggling to get back to work, or to stay in employment due to the current disproportionately high costs and lack of available places. Childcare providers are struggling to stay open. This absolutely must be addressed in Budget 2023,” she said.