€1,700 savings for childcare – but not until September 2024

PARENTS of children in full-time care will see savings of up to €1,700 per year under the Budget, but not until late next year.

Children’s Minister Roderic O’Gorman said the Government had achieved its ‘ambition’ to slash the cost of childcare with a total 50% reduction in costs over two years. But the Minister faced criticism from a range of childcare providers for not doing enough in the Budget to support the sector and its workforce.

Many were also unhappy with his decision to wait until September 2024 to introduce the 25% reduction in fees, when the same cut announced in last year’s budget was introduced in January. Elaine Dunne of the Federation of Early Childhood Providers said she has been hearing from parents who want to see reductions in their childcare costs sooner than 11 months’ time. ‘It actually doesn’t support the parents now, it is all coming in next September, why so late?’

Ms Dunne also expressed dismay over the lack of provisions made in the Budget for childcare providers themselves. The Minister’s Budgetary changes will ‘put a whole load of us out of business,’ she claimed – but added she is awaiting further details from the department to see the true impact. ‘We were hoping that Government would come out and do something substantial for smaller service providers and they haven’t, so it looks like their services are in jeopardy.’

An additional €44 million for the Core Funding model was also announced in the Budget, allowing for a 3% increase in capacity in the sector and an increase in the amount given to providers for administration – and €21.4m for new developments in the scheme.

The Minister said the additional funding will allow the department to target the providers who are getting the least under Core Funding. However, Minister O’Gorman said that the mechanism for how they will implement some of this additional funding is not yet worked out.

Darragh Whelan, director of Childhood Service Ireland, said: ‘Significantly increasing childcare subsidies is a good start but there is a long way to go for the childcare sector.

‘With a freeze on childcare fees in place, services are unable to offset any inflationary cost pressures, and many are really struggling in the current climate.’

The Minister also announced an expansion of the Access and Inclusion Model (AIM) to around 7,000 more children with additional needs.

He also launched a new scheme similar to the DEIS system for schools, to provide additional supports to children at a socioeconomic disadvantage to attend early learning care.

‘It doesn’t support parents now’