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Government to reduce childcare costs 'considerably' in the next Budget

Childcare fees will be capped at September 2021 levels if a deal can be done on pay and conditions.

THE GOVERNMENT IS planning to focus on reducing the rocketing cost of childcare in the Budget in October, senior sources have said. 

This year’s Budget will “be hopefully more about helping parents with the actual costs,” one person with knowledge of the situation told The Journal. It follows attempts in last year’s Budget to increase wages for staff in the sector. 

Budget discussions and kite-flying by ministers don’t usually begin until the summer, but due to the increased demands on the purse strings, there will be a lot of competing demands come October as departments jostle to get their share.

Pay and condition discussions are underway with the sector and if agreed to and signed off on, it will result in childcare fees being capped at what they were in September 2021, regardless of whether they have increased over the last year.  

The Government has already rolled out two package of measures to help ease the rising cost of living, but there are fears that tinkering around the edges could make inflationary matters worse. 

One way of attempting to put more money in people’s pockets is through increasing State supports and reducing the cost of services. 

Tánaiste Leo Varadkar said last week that increased subsidies should be used to reduce the cost of childcare “considerably” for parents. 

Capping fees

Giving a speech at the Royal College of Surgeons, Varadkar said:

“We can reduce the cost of services that are influenced by Government. Childcare is already subsidised in Ireland. The focus of additional subsidies this year has been on paying staff better and improving quality.

“Next year, increased subsidies should be used to reduce costs considerably for parents. This will increase disposable family incomes and make it more attractive for parents to return to the labour market thus helping to fill vacant positions and moderate wage inflation.”

Taoiseach Micheál Martin has said that there is a need for universal access to childcare.

Speaking on International Women’s Day this year, he said childcare remains an issue which primarily impacts on women and their ability to participate in not just the labour force but in all aspects of our society.

“I am determined that we will significantly improve the range and quality of childcare available in Ireland,” he said. 

Affordability 

The Department of Children is currently working on a proposal that will be sent to the Department of Public Expenditure this summer ahead of Budget 2023 in October.

“The main focus is the affordability of it. There is core funding there now that should really make a big difference,” said one source. 

The idea of core funding was introduced last year by Children’s Minister Roderic O’Gorman, which he said at the time was the key to unlocking some of the most challenging issues in the current funding system and offers a new basis on which to build partnership between the State and providers.

Core funding to the tune of €220 million will help improve pay and conditions in the sector, and in turn, enable parental fees to be controlled by the State, so that the full affordability benefits of the Early Childhood Care and Education Programme (ECCE)  programme and the National Childcare Scheme (NCS) can be realised.  

Help with the cost of living

Senior sources have said the Government is limited in the further action it can take to reduce the rising cost of living, but said a reduction in the cost of childcare “will help with cost of living, reduce inflation and might encourage and enable more parents to re-enter or stay in the labour market”.

They said this would help with wage inflation and the recruitment problems firms are facing, as well as having a knock on impact on gender pay and the pensions gap. 

The Government is well aware that people are also struggling with rent while saving for a mortgage and it is hoped a reduction in childcare fees could help.

Plans are yet to be firmed up but will be in the coming weeks, they added, stating that the systems are in place now to make it doable for October. 

However, those in Government circles have said it would be better if the Joint Labour Committee (JLC) for the Early Years’ Service sector, which was set up last year to discuss and agree proposals for terms and conditions for childcare sector workers, would be completed first.

Sources state that the discussions are “coming to a head” and should be ready shortly.

Ensuring there is a deal on pay is vital to being able to pass savings onto parents, said another source, who said the pay right now is not reflective of the work being carried out by childcare workers. 

Once an agreement is struck, the focus by Government will be on increasing funding to the NCS, as in the past when that has been done it has been “eaten up” with staff pay and resourcing.

State control of fees

“Just putting core funding into NCS wouldn’t have a benefit for parents as without having control on fees they wouldn’t see it,” said the source who added that if salary payments are agreed and signed up to, it would result in the capping of fees.

All going to plan, fees in the coming autumn would reduce to September 2021 levels, they added.

They said this would be significant as it would be the first time the State would have control of childcare fees

“It has to come down — all three parties are agreed on that,” they added.

Currently the National Childcare Scheme currently provides financial support to help parents to meet the costs of early learning and childcare.

Universal subsidies are available for all children under three years of age, giving up to €1,170 to parents towards the the cost of childcare, regardless of income.

Further targeted subsidies are available for children aged six months to 15 years old, but vary depending on your income, your child’s age, and whether you are working or studying.

It is understood that Fine Gael will be pushing for a big increase in the universal subsidy so all parents will benefit from a substantial reduction in fees.

However, it is believed the Green Party and Fianna Fáil favour more targeted subsidies for lower income families rather than across the board. 

In recent weeks, Labour’s Ivana Bacik said a “Donogh O’Malley moment in early years education and care” is needed, describing the Minister for Education who 50 years ago introduced free secondary school places for every child, and adding that the Government should now be seeking to implement and introduce a free childcare place for every child.

Green Party leader and Transport Minister Eamon Ryan said Minister O’Gorman has already done a huge amount of work on the matter, stating ”that it is along the lines and of the scale of ambition that Deputy Bacik speaks about”.

“We want that sort of moment whereby we make it really easy in this country for people to be able to raise a child in the best way possible and that that fits with the various and different family circumstances. That is going to be a budget measure,” he said.

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    Mute Celtic Eagle
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    Sep 2nd 2022, 7:47 AM

    It’s called democracy Joe, even if you don’t like their politics. I’m sure they don’t like your politics either. No one is perfect.

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    Mute Brendan
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    Sep 2nd 2022, 8:06 AM

    @Celtic Eagle: it’s not democracy when Trump lies to people about the outcome of elections.

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    Mute Marcus Suridius
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    Sep 2nd 2022, 8:10 AM

    @Celtic Eagle: storming the captial because you didn’t like the result is democracy?

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    Mute 2thFairy
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    Sep 2nd 2022, 8:12 AM

    @Celtic Eagle: you are wrong. A demographic society is not based on lies or instilling fear. It’s not a green light to be aggressive. It’s about having the freedom to be safe, make your own choices and be respectful about differing opinions.

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    Mute 2thFairy
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    Sep 2nd 2022, 8:15 AM

    @2thFairy: #democratic.

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    Mute Damien Leahy
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    Sep 2nd 2022, 10:13 AM

    @Brendan: how did hillary Clinton get put forward for president even though she lost every vote to bernie sanders

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    Mute bmul
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    Sep 2nd 2022, 10:17 AM

    @Damien Leahy: but she didn’t did she

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    Mute jl
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    Sep 2nd 2022, 11:11 AM

    @bmul: she did. In alot of states it was rigged for her in the democratic primaries

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    Mute Damien Leahy
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    Sep 2nd 2022, 11:22 AM

    @bmul: did she not run for president against trump

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    Mute Diaspora'd
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    Sep 2nd 2022, 4:23 PM

    @Damien Leahy: I am trying to make sense of your post.

    I am not a big fan of Hillary Clinton and I voted for Bernie in the Democratic primaries. But it’s not correct to say that “she lost every vote to Bernie Saunders”. It was obvious the DNC favored Clinton but on the whole she won based on the same rules that Democratic Primaries had been run on for decades.

    https://en.wikipedia.org/wiki/2016_Democratic_Party_presidential_primaries

    The superdelegate vote system and rules have since been changed. I wish the rules on the electoral college system could be changed so a candidate like Trump in 2016 couldn’t be elected President after getting less votes overall than Clinton did

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    Mute The Ghost of Dublin
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    Sep 3rd 2022, 2:18 AM

    @jl: that’s not true, at all. You’re lapping up conspiracy theories because you don’t like the truth.

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    Mute JedBartlett
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    Sep 2nd 2022, 8:06 AM

    “Prime time speech” that wasn’t carried live by any of the top 3 networks in the states. He also has to speak over protestors, why isn’t that mentioned in the article?

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    Mute Seamus Quaide
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    Sep 2nd 2022, 7:29 AM

    It’s like half of America are crackers and Trump has hypnotised them

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    Mute Trevor W
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    Sep 2nd 2022, 8:31 AM

    The place is in bits in fairness.

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    Mute Kevin McCourt
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    Sep 2nd 2022, 11:16 AM

    He used the words maga, threat and violence so many times in this speech. It was a platform to allocate blame and not take personal responsibility. Maga = boogieman. He’s attempting a bit of brainwashing for his own cult. How can a political leader condemn 70+ million residents of his country as a dangerous, fascist threat? What about the literal dangerous, fascist threat of BLM and Antifa who his party support in their violence and destruction? He’s playing make believe

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    Mute Con Cussed
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    Sep 2nd 2022, 11:34 AM

    @Kevin McCourt: “..fascist threat of BLM and Antifa who his party support in their violence and destruction”. You partly educated or just blind?

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    Mute A$AP Ragnick
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    Sep 2nd 2022, 3:02 PM

    @Kevin McCourt: its not 70 million though is it, there are probably plenty of normal well adjusted americans who vote republican because they always have, akin to people with ff and fg here. Then there is a sizable minoroty ofnutjobs who hang on his every word, and to who he can do no wrong even in the face of overwhelming evidence. They are the ones who biden is referring to.

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    Mute Will
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    Sep 2nd 2022, 3:09 PM

    @Con Cussed: The BLM and Antifa riots caused untold damage to property and businesses. They declared autonomous zones in major cities, the very definition of sedition. Dozens of people were murdered during these riots.
    Yet we are to believe that Jan 6 was the real threat.
    Americans are waking up to this hypocrisy and Biden’s divisive speech will not have helped the Democrats one bit come November.

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    Mute Diaspora'd
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    Sep 2nd 2022, 4:41 PM

    @Will: The BLM movement didn’t attempt to stop the transfer of power, Trump’s MAGA rally rioters on January 6th did. And yes, anyone of any political identity should be jailed when committing crimes.

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    Mute The Ghost of Dublin
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    Sep 3rd 2022, 2:20 AM

    @Kevin McCourt: clearly you did not listen to the entire speech. He talked about working together, and unity. The maggots were only mentioned briefly. Did it trigger you?

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    Mute Kevin McCourt
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    Sep 3rd 2022, 3:11 PM

    @The Ghost of Dublin: You sound a touch triggered yourself. He mentioned a lot, a contradicting politician is nothing new. I care less about who they want to persecute on their own soil, I find the whole thing to be akin to a soap opera. It’s the confession through projection and theatre of it that amaze me. It’s interesting to see what happens when domestic policy is high priority. Similar disaster and as many lies as when foreign policy was king.

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    Mute l
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    Sep 2nd 2022, 8:41 AM

    And now, right or wrong, he’s validated the claim the FBI are hunting Trump..

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    Mute bmul
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    Sep 2nd 2022, 10:16 AM

    @l: isn’t that what the FBI does hunt criminals

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    Mute Colm O' Shea
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    Sep 2nd 2022, 7:29 AM

    While he may be 100% right, don’t think it’s going to have any benefit to calling it out. The MAGA heads are just going to use his speech to keep pushing their agenda. It’s going to polarise opinion and Republicans who may have voted Democrats are going to be turned off

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    Mute 2thFairy
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    Sep 2nd 2022, 8:13 AM

    @Colm O’ Shea: I don’t think he was talking to them. Their brains are fried and not recoverable.

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    Mute Colm O' Shea
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    Sep 2nd 2022, 12:24 PM

    @2thFairy: maybe not but the point still stands that the GOP will jump on bidens words and use them as a rally cry for their base

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    Mute The Ghost of Dublin
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    Sep 3rd 2022, 2:22 AM

    @Colm O’ Shea: the GOP will do anything to retain power. And I do mean anything.

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    Mute Irish big fellow
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    Sep 2nd 2022, 9:08 AM

    MAGA is like a fascist outfit and is looking more like pre WW2 Germany.

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    Mute Martin O Connell
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    Sep 2nd 2022, 8:20 AM

    It’s life Joe, but not as we know it. Different isn’t always a bad thing.

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    Mute John Quill
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    Sep 2nd 2022, 7:54 AM

    I’ve often think Lincoln should have cut losses and let them have their racist little country.

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    Mute Podge
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    Sep 2nd 2022, 10:34 AM

    @John Quill: I never understand the implications that Trump supporters are all just racist. It’s provably false as statistically Trump could not have won in 2016 without a large number of voters who previously voted for Obama.

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    Mute Neil Feirtèir
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    Sep 2nd 2022, 1:20 PM

    @Podge: in 2016 you can give voters the benefit of the doubt.
    Anyone who voted a 2nd time for Trump you cannot.
    It basically endorsed his ideas and behaviour.

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    Mute Al Fresco
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    Sep 2nd 2022, 11:29 PM

    @Podge: I think trump cheated and won in 2016 and trump cheated and lost in 2020.:

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    Mute The Ghost of Dublin
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    Sep 3rd 2022, 2:23 AM

    @Podge: they are so racist they don’t even think it’s wrong to think the way they do.

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    Mute Verners Tess
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    Sep 2nd 2022, 8:34 PM

    Fair play to Trump. Like him or dislike him, he has rattled the cages of those in power. He has upset their cosy cartel a little and they don’t like it.

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    Mute The Ghost of Dublin
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    Sep 3rd 2022, 2:24 AM

    @Verners Tess: Trump is a criminal and anyone rooting for him is, as well.

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    Mute Verners Tess
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    Sep 5th 2022, 1:33 AM

    @The Ghost of Dublin: Please explain?

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