Thousands of families availing of childcare services are set to benefit from increases to State subsidies due to come into effect on Monday.
“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 €3,837 across a two year period.
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.
About 95 per cent of providers signed up to the scheme last year. While there have been some 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.
Childcare Subsidy Increase: What It Means for Families
The new childcare subsidy rates are a welcome boost for families struggling with the rising cost of childcare. The increase in the minimum hourly subsidy from €1.40 to €2.14 will mean significant savings for many families, particularly those with multiple children in childcare.
The Government's commitment to expanding the National Childcare Scheme and introducing fee caps for childcare providers is a positive step towards making childcare more affordable and accessible for all families. However, concerns remain about the availability of childcare places and the need for further investment in the sector to address staffing shortages and ensure adequate pay for childcare workers.
The Future of Childcare in Ireland
The Government's stated aim is to make Ireland a “childcare superpower” and create a more sustainable and equitable childcare system. This includes expanding access to affordable childcare, improving quality, and supporting the workforce. While there have been significant improvements in recent years, much work remains to be done.
The challenge facing the government is to strike a balance between affordability, accessibility, and quality. This requires a long-term commitment to investment and policy changes. The future of childcare in Ireland depends on the government's ability to meet this challenge.
