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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Childcare provider funding gap

Summary

Deputy McNamara raised a disparity in payments between large and small childcare providers, warning it could drive corporatisation or closures. The Minister said the sector is being engaged with, new investment will take effect in the autumn, and funding must improve affordability and career paths.

There is a large discrepancy in what childcare providers are paid per child between large and very small childcare providers. Large providers are paid more per child. Usually the opposite is the case, for example, in Department of Education capitation fees, because the more children there are in a school, the cheaper it is to heat the school, provide additional staff supports per child and so on. This significant difference has created a real risk of either corporatisation of childcare in Ireland or, at the very least, small-scale providers not being able to continue. Will that be addressed? I appreciate the matter does not fall under the Minister’s Department per se but as the Minister for Public Expenditure and Reform, he has an overview of public spending on matters like this. Will it be addressed?

Comment on this

I assume the Deputy is referring to the early years sector in particular. The Minister for Children, Equality, Disability, Integration and Youth, Deputy O’Gorman, is engaging directly with that sector.

As a Government, we made a step change in investment in the last budget, which will kick in in the autumn. I want to make sure that funding is used effectively for the purpose for which it is intended, which is to improve affordability for parents and to make sure there is a good career pathway for the workers in the sector. Like the Deputy, I got the feedback from the small providers as well. I have spoken to the Minister, Deputy O’Gorman, who is very much aware of it. He is engaging with the sector and we look forward to seeing the outcome of that.

Comment on this