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Dáil
‹ An tOrd Gnó - Order of Business

Childcare provider viability

Summary

Deputy Lahart warned that some childcare providers may withdraw from core funding, leaving parents with unaffordable costs. The Taoiseach said funding has increased, most services will benefit, and he would raise the specific concern with the Minister.

I thought we had left these days behind us because we have made huge strides in the provision of affordable childcare under this Government. In my constituency, however, this progress is being seriously jeopardised by the fact that some providers are being forced to withdraw from the scheme because of the unviability of their businesses. If no alternative providers are available locally and when a provider withdraws from core funding, parents are then left with the equivalent of a second mortgage cost for their childcare when a provider withdraws from the core funding system. Providers are saying they are withdrawing and maintaining they cannot cope with the increased costs in food, energy and wages. I know the Taoiseach will agree with me that when it comes to the cost of childcare and its affordability, equality must mean equality. What steps can the Government commit to taking in addressing this issue?

Comment on this

I thank the Deputy for raising the issue. There has been an increase in funding and so forth, as well as new funding to help services meet the fee management conditions attached to core funding. Most services will see their core funding rise to help to maintain the fee freeze. However, about 10% will be required to reduce their fees. I do not know whether this is the case in the specific experience the Deputy has spoken of but I will raise this issue with the Minister for children and disability. We are anxious to fulfil the Government programme in terms of reducing the costs of childcare very significantly, and we are going to take action in the forthcoming budget to further reduce the cost of childcare for families. The Deputy’s issue is more one of maintaining people within the core funding system and what happens if certain providers pull out.

Comment on this