Childcare providers warn many could flee the sector over 'seriously flawed' government plan

Childcare providers warn many could flee the sector over 'seriously flawed' government plan

The Federation of Early Childcare Providers has raised concerns about a new funding programme. Stock Picture.

Childcare providers have warned many members could leave the sector due to government plans set to be introduced from September, which could lead to problems for parents.

The Federation of Early Childcare Providers (FECP) claimed the €221m Core Funding Programme (CFP) announced three weeks ago by Minister for Children, Equality, Diversity Integration and Youth, Roderic O’Gorman, is "seriously flawed". The organisation has asked that members and others petition the government to have it changed and also signalled an intention to protest against the plan. 

The group said 70% of FECP members surveyed claimed they were not happy in their ability to sustain their business having examined the viability of the core funding allocation to their service under the plan.

In addition, 80% of the 808 childcare providers questioned said that, despite the Government introducing new sick pay legislation this week, they would be unable to meet any demand for sick pay, while at the same time providing the necessary relief staff to meet required ratios of carers to children.

The survey also found that more than one-third of providers are committed to rejecting the new core funding model and just 12% said they will sign up.

Complaints against the plan centre around the fact that the government subsidy for early-learning support has never been index-linked. Members are also said to be unhappy with the demand that childcare services sign-up to an Employment Regulation Order (ERO) for minimum pay and conditions.

FECP is also concerned about rising costs linked to inflation.

FECP Chairperson Elaine Dunne, said: “The Minister’s Department is using inflation assumptions dating from September last, which forecast a rate of 2.1% this year.

“Childcare providers are facing increasing overheads due to additional regulatory requirements, wage increases, insurance hikes and the fallout from Covid closures and the expensive operational measures required.

"We really wanted to welcome this new package, but weren’t given the chance to point out its flaws, in particular outdated assumptions on inflation, and an unrealistic view of operating costs. Plus, the failure to balance recognition of the role of university education in our industry with the equal importance of experience."

FERP also claimed that a proposal for a freeze in parental fees amounted to price-fixing and anti-competitive behaviour.

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