Childcare providers may withdraw from funding scheme over reporting rules

Some childcare providers may have to withdraw from a State-backed funding scheme on the back of new financial reporting obligations which are too onerous, Ibec’s representative body for the sector has said.

A new €221 million core funding system was introduced last year for the childcare sector, but has come in for criticism from groups who say the funding is too low and comes with too many restrictions.

The scheme involves a payment to providers designed to meet a number of combined objectives, including a guarantee that fees to parents will not increase above those which were charged last year.

However, Childhood Services Ireland (CSI) the Ibec group representing childcare providers, on Friday expressed its “significant concerns” over new, additional financial disclosure requirements.

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The childcare sector in Ireland looks after more than 200,000 children in 4,600 childcare services and employs almost 31,000 childcare professionals.

CSI said it “firmly believes” that private childcare providers should not be compelled to disclose financial information beyond what is already mandated by Revenue authorities.

“The substantial demands for additional financial information from private providers in the early years’ sector impose an undue burden and unnecessary stress on their operations,” it said.

“Providers are already grappling with numerous challenges in delivering quality services while complying with existing regulations.”

The group said the lack of the promised “partnership” between the Department of Children and providers “only adds to the frustration” felt by those in the childcare sector.

“It is crucial for policymakers to consider these concerns seriously and work towards a more balanced approach that respects both transparency needs and operational realities faced by private early education and childcare companies of all sizes,” it continued.

“Our focus as a sector must remain primarily on the provision of quality early years education to the children of Ireland.

“The ongoing and increasingly burdensome requirements from the government are diverting attention from our core activity – the care and early education of children.

“Providers entered this business to serve the needs of children, not to provide the government with ever-increasing administrative returns that add no value to our services.

“It is our understanding that some members may have to withdraw from core funding because they are not in a position to manage the additional burdens being placed on them by the department.”