Roderic O'Gorman: Parents should not expect 25% cut in childcare fees in Budget 2024

Thu, 10 Aug, 2023 - 02:05

Ciara Phelan, Political Correspondent

Parents will not see another 25% cut in the cost of childcare in the upcoming budget, Children’s Minister Roderic O’Gorman has indicated, amid warnings that the sector is facing a tsunami of closures due to spiralling costs.

Mr O’Gorman previously committed to halving childcare fees over two budgets.

Last year, fees were cut by 25% reducing costs by up to €175 a month and it was expected the October budget would include a further 25% reduction. However, in an interview with the Irish Examiner, the Green Party minister said that, while the department will look at cutting costs, it would not be by an extra 25%.

He said reducing the cost of childcare fees in the upcoming budget is “not our sole focus”.

“This year in the area of childcare, we want to continue to cut the cost for parents, but it’s not our sole focus,” he said.

We also want to increase capacity by bringing childminders into the national childcare scheme. That’s something I’ve been working on for the last two years.

“But we also want to improve access for children with a disability.

“We’re looking to widen our Aim [the access and inclusion model] right now that allows children access to three hours of the early childhood care and education, the free two years of pre-school, but we’d like to broaden that out further.

“The desire to cut the cost of childcare, which is still central to what we’re doing, is located across those three priority areas.”

Asked if parents could expect a specific announcement on cutting fees similar to last year, Mr O’Gorman said he hopes to be in a position to do so on budget day.

The previous reduction in fees cost the State €121m.

Childcare providers have warned that hundreds of small and medium-sized creches face closure over the coming year due to State funding not covering inflation, together with spiralling costs and staff shortages.

However, Mr O’Gorman said although he recognises there are recruitment and retention issues, he claimed only some representative organisations will “say those things”.

“The level of closures this year is lower at this point in August than it has been in 2022, 2021, and 2020. I think that’s really important to say. If you were to listen to some groups, you would think that the levels of closures are rising. They’re actually decreasing.”

Mr O'Gorman said he has met childcare providers across the country, and they are happy with the additional funding he has brought into the system.

During the summer, Mr O’Gorman announced an additional investment of €28m for the childcare sector, starting in September, bringing the total core funding budget to €287m.