Thousands of families availing of childcare services are set to benefit from increases to State subsidies due to come into effect on Monday.
Increased payments under the National Childcare Scheme announced in the last Budget will leave the majority of parents with children in early learning and care settings better off by just over €33 per week.
The Minister for Children, Roderic O’Gorman, said on Thursday the latest round of increases will mean “for the average parents, childcare costs will have fallen by about 50 per cent,” due to the different programmes introduced by the Government.
“If you’re a parent who is using full time childcare for 45 hours a week, you will see the next year a €1,731 saving,” he said, adding that a family with a child in childcare since January 2023, would benefit from total savings of €3837 across a two year period.
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Mr O’Gorman said the Government is also taking other measures intended to control costs for parents. During the coming year, there will be a cap on the fees newly established childcare facilities can charge - €390 for 50 hours or more of care before subsidies - and this is then to be replaced by a price cap for all service providers. In both instances the restrictions will apply to those providers participating the Government backed Core Funding programme.
[ What do the new subsidies mean for parents and service providers?Opens in new window ]
About 95 per cent of providers signed up to the scheme last year and while there have been widely reported withdrawals in recent weeks resulting in proposed fee increases that will affect hundreds of families, the Department of Children says sign up rates for year three is on a par with at the same stage 12 months ago.
Those services signing up to Core Funding are generally required to commit to a fee freeze but as part of the registration process for the new round, a portion of providers are being allowed apply for increases of up to €33 per week, the intention being that while some parents may not find themselves better off during the coming year, none will be worse off.
Mr O’Gorman put the figure of those service provider to have applied for increases so far at 9 per cent, which would equate to about 400, but, he said, “just because they’ve made the application doesn’t mean that they’ll get the full amount that would cancel out the NCS increase.”
He said some 32,000 children are expected to benefit from the “Equal Start” funding to be rolled out with the programme intended to serve as a Deis-type support for the early learning and care sector.
Further increases in spending on the sector will be announced in the Budget, he said.
“By the time of Budget 2025, I’ll have pretty much doubled investment in child care from €638 million when I started to what I would imagine will be well above €1.2 billion euro in 2025 but that increased investment needs to continue.
“Ireland, in the next five years, needs to be moving towards where other European countries are in terms of that percentage of GDP that they’re spending on childcare.”
Among the measures he suggested needed to be taken are an expansion of the existing Early Childhood Care and Education (ECCE) programme intended to provide a statutory entitlement to two years of the pre-school years care it provides, the direct involvement of the Government as a provider in the sector so as to address acute shortages in particular area and further improvements to the pay of childcare workers who are, he said, “still under paid compared to the importance of the work they do”. Commitments to all three, he said, would be contained in the green Party manifesto for the forthcoming election.
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