Gorey: Ireland’s Childcare System Under Strain as Services Close

A growing crisis is unfolding in Ireland’s early years childcare sector, with nearly 1,000 services having closed their doors over the past six years. New figures obtained by RTÉ News from the Department of Children reveal that 977 early years childcare services have ceased operations since 2019, while only 579 new services have opened during the same period. This alarming trend leaves a staggering 40,000 children nationwide on childcare waiting lists.

Rising Costs and Insufficient Funding

The Federation of Early Childhood Providers (FECP) attributes these closures to a combination of escalating costs and inadequate government funding. The Early Childhood Care and Education Programme (ECCE), a free two-year program for children aged between two years and eight months and five years, provides three hours of free pre-school daily. However, providers argue that the current government funding, ranging from €69 to €82 per child per week, is insufficient to cover operational expenses and ensure sustainable services.

Racheal Govan, owner of Footprints Early Years in Dublin, highlights the financial pressures faced by childcare providers. “Last year, the increase in core funding was a mere 5c per child. Considering the soaring cost of living, rents, rates, taxes, and now pensions – an additional €12,500 expense – and a €17,500 rise in staff wages, the math simply doesn’t add up,” she explains.

The Core Funding Scheme and its Limitations

The core funding scheme, introduced in 2021, aimed to assist early learning and childcare providers with operating costs in exchange for a commitment to freeze fees. However, over 177 services have withdrawn from the scheme in its first three years. Averil Sheehan, owner of Care-A-Lot childcare in Cork, found that leaving the scheme allowed her to increase fees, ultimately saving her business. She explains, “We were stuck in a historical freeze since 2017 and weren’t allowed to increase our daily fee. Everything had gone up, and I wasn’t getting enough funding to match inflation.”

Impact on Families

The financial strain extends to families, as evidenced by Catherine Kelleher, a mother of three attending Ms. Sheehan’s creche. “The fee increase has had a huge impact on our finances. One full paycheck now goes towards childcare, forcing us to tighten our budget in other areas,” she shares.

Government Response and New Initiatives

The Department of Children reports a five-year high in new service openings in 2024 (357) and a five-year low in closures (131), resulting in a net increase of 226 services. However, when focusing specifically on creches and ECCE services for younger children, 96 opened while 95 closed.

In response to the growing demand, the government has announced a State-led investment program to acquire buildings for use as childcare facilities, aiming to create over 800 new places by early 2027. However, the FECP has expressed concerns about the lack of consultation with childcare providers and the practicality of the plan.

Providers Voice Concerns Over Lack of Consultation

Elaine Dunne, FECP Chairperson, criticizes the government’s approach, stating, “There has been no consultation, and they are rolling ahead with the cart before the horse. It’s disrespectful to the providers out there today.” Many providers, like Racheal Govan, are hesitant to relinquish control of their services to the state, valuing the quality and ethos they have cultivated.

Minister Foley Addresses the Challenges

Minister for Children, Disability, and Equality, Norma Foley, acknowledges the challenges faced by parents, particularly those with children aged 1 to 3. She highlights a recent decline in the birth rate and emphasizes the government’s commitment to investing €1.5 billion into childcare and early learning, including €45 million specifically for staffing. The government aims to cap childcare costs at €200 per month “over the lifetime of the government,” focusing on increasing places, affordability, and staffing.

Sinn Féin Criticizes Government’s Ambition

Sinn Féin leader Mary Lou McDonald has accused the government of lacking the ambition and urgency needed to deliver affordable childcare, reiterating the unfulfilled promise of affordable childcare.

The situation demands urgent attention and collaborative solutions to ensure that all children in Ireland have access to quality, affordable childcare. Further information can be found on the Department of Children, Equality, Disability, Youth and Integration website.