'Big' budget package:Childcare fees will drop for most parents

Thaneist Leo Varadkar said childcare fees for the vast majority of parents would fall under a "huge movement" in September's Budget.

It was reported in April that the government plans to focus on reducing the rocketing cost of childcare in the budget.

A recent survey revealed that, on average, parents pay around €800 a month per child for childcare.

According to the Annual Early Years Sector Survey, the national average weekly cost per kid for full-day care is €186.84.

Varadkar stated that enhanced subsidies will significantly lower expenses for parents even though the €221 million "Core Funding" scheme for childcare providers will establish minimum pay rates across the industry and assure no increase in fees in 2022–2023 over September 2021 rates.

Freezing fees ‘not enough’

According to the Tánaiste, the increased investment for the industry aims to raise childcare quality and freeze costs.

Added him:

"That won't be sufficient. All three parties believe that we should make a significant change to the budget for childcare, which would result in lower costs for the vast majority of parents. It makes perfect sense because it will lower living expenses.

Often those who pay a lot for childcare are also the ones paying the rent and the mortgages and commuting. So it’s a particular group that need particular help, I think when it comes to the cost of living. It’s the right thing to do in terms of easing the burden of inflation on families.

Additionally, it is very economically sensible due of the widespread shortage of staff. And it would be really beneficial for us if we could give more people the option to select — and it will be a choice — to return to the labour sooner or to work more hours.

Long before inflation became a problem, according to Varadkar, Ireland had some prices that were "out of kilter" compared to the rest of Europe.

"One is the cost of transportation, and we've taken action there. One more is childcare. And I believe we need to take serious action in that regard," he added.

Childcare closures

His remarks came as Tiger Childcare, one of the top childcare providers in the nation, issued a warning about additional closures and employee cutbacks in the industry as a result of a delay in a financing scheme.

It is acknowledged that before established minimum pay rates across the sector may be implemented, Employment Regulation Orders (EROs) must be approved. However, this is a separate procedure that is outlined by industrial relations law and necessitates the creation of a Joint Labour Committee.

The Department of Children "had to get this right to see a real reduction in prices for parents and secure the availability of spaces," according to Jennifer Carroll MacNeill, Fine Gael's Spokesperson for Equality.

In light of the current cost-of-living problem, she stated that this is what parents and childcare providers need and want.

The Department "has to get serious and acknowledge the pressure this produces on families," she said.

Let's hope the two wings of the department can sort out the policy cohesion and financial delivery in the lead-up to the Budget so that working people, especially working women returning from maternity leave, have an easier time of it.

"It's critical to pay attention to what providers have to say. The Department must pay attention if they are indicating that the present core funding structure is too challenging, she continued, noting that she has been informed of at least two childcare centre closures in her own constituency in the past month.

"Due to the existing unfairly high expenses and dearth of career opportunities, parents, and particularly women, are finding it difficult to return to or remain in the workforce. Childcare facilities are fighting to remain open. Budget 2023 must unquestionably address this, she said.

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