Staffing issues may force 'hundreds' of childcare firms to close

The childcare sector is threatened by chronic staff shortages and rising costs, warned Tigers Childcare CEO Karen Clince

Tigers Childcare founder and CEO Karen Clince: 'I have worked in the sector for over 21 years, I have never experienced anything like the financial pressures and the staffing crisis we have faced in the last 12 months.' Picture: Conor McCabe 

Ireland’s childcare sector is being threatened by chronic staff shortages coupled with rising costs, warned one of the country’s main players in that space.

Tigers Childcare founder and CEO Karen Clince, who recently completed a €4m expansion into Cork, said that the cost of running a childcare centre has become increasingly challenging for many providers, primarily driven by wage inflation, as they battle to attract and retain qualified staff.

“I have worked in the sector for over 21 years. While I have been involved in numerous changes, I have never experienced anything like the financial pressures and the staffing crisis we have faced in the last 12 months,” said Ms Clince.

She said that the Government is failing to effectively engage with professional childcare providers to find a solution despite Children's Minister Roderic O’Gorman recently announcing that he will secure an extra €28m for the sector in this year’s budget.

Ms Clince said that the increase falls short of addressing the soaring costs to run a service.

“If the Government does not act fast to take a proper look at the situation on the ground and commit to fully understanding what is needed to help the sector, hundreds of settings will close,” said Ms Clince.

Last September, a new pay agreement for childcare workers came into effect, with the majority of the new sector funding from the State allocated to allow providers to implement pay scales.

However, due to a high number of professionals leaving the sector, increased competition for hiring has resulted in wages surpassing the funding's coverage.

The cost of running a childcare facility is at an all-time high, not only due to massive inflation but also ever-escalating wages, which account for 70% of our costs.

“It's crucial that we work together now to address these hurdles before they spiral out of control. Without immediate engagement and intervention, the viability of the childcare sector hangs precariously in the balance.”

Tigers Childcare operates 19 centres, mainly in Dublin and commuting areas, providing care for around 2,100 children, and employs 300 people.