Despite record public investment in early learning and care, many providers in Ireland are uncertain about their futures, with 40% of Childcare Services Ireland (CSI) members indicating they won’t enter core funding in 2024-2025. This could lead to significantly higher fees for parents.
The government introduced core funding two years ago under the First Five Strategy, aiming to ensure high-quality early learning and care while providing sector stability. Providers agreed to a fee freeze, expecting core funding to cover their costs. However, rising operating expenses due to new legislation and inflation have outpaced the funding, leaving many providers financially strained.
With over 74% of early learning and care services in Ireland being private, profit-driven entities, maintaining profitability is essential to keeping their doors open and continuing to offer quality services. Despite government research highlighting the economic and social benefits of high-quality early learning and care, there remains a gap between policy and practice.
The Partnership for the Public Good policy intended to improve staff pay and conditions to reduce turnover, thereby enhancing service quality. Yet, workforce recruitment and retention remain major challenges, with providers struggling to compete with new services offering higher wages.
Parents now face either higher fees or fewer childcare options, with some services unable to afford to keep baby rooms open. To address these issues, CSI has called for a 35% increase in core funding or the removal of the fee freeze, and for the National Childcare Scheme subsidy to cover 70% of childcare costs.
Immediate action is needed to stabilize the sector, with the next round of core funding requiring collaboration between the government and providers to reflect their needs. Without intervention, the sector faces a potential crisis in the coming months.
Stephanie Roy, Director of Childhood Services Ireland, stresses the urgent need for meaningful solutions to keep services open and affordable.