State-run childcare sector the 'only common sense' solution to crisis, warns National Women's Council

Childcare providers across the country have warned that they are going 'insolvent' due to what they perceive is a lack of support from government.

A state-run childcare sector is the "only common sense" solution to the crisis issue, the National Women's Council has said.

Childcare providers across the country have warned that they are going "insolvent" due to what they perceive is a lack of support from government, with providers withdrawing from the core funding system, which threatens to see prices increase for parents. 

Providers who accept core funding cannot increase existing prices beyond a strict limit of €33.30 per week. They have argued they cannot continue to operate without additional funds.

The National Women's Council said that many parents "will face tough decisions about whether to pay the fees or leave work and take on childcare themselves".

'Simply not working'

Rachel Coyle, head of campaigns at the NWC, said that the current model of childcare is "simply not working" and "props up" private providers. She said that a state-run system would provide more certainty for families.

"It’s not working for parents, it’s not working for children, and it especially is not working for gender equality. We need a system that creates stability, guarantees a place for every child in the country, one that gives parents choices, and eradicates the volatility in fees that we are seeing this year.”

The NWC said that a public system is "a crucial piece in the puzzle for women’s equality".

NWC’s care officer Eilish Balfe accepted that the system would not be achieved overnight but said that the crisis in the childcare sector is growing despite an increase in funding.

“A public system of Early Childhood Education and Care, akin to our primary school system, will naturally take a lot of planning and is not an overnight solution. However, it is the only sustainable solution for the future. In 2021, the government spent €638m on childcare, and in 2024 they spent €1.1bn. Despite doubling the investment, the crisis keeps growing. They need to change tactics.

Ms Balfe said that a pilot system could be introduced alongside ongoing support for private providers to ensure that there is "no cliff edge".

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One chain of creches in Dublin, Little Rainbows, told parents that it was pulling out of the core funding model, with Social Democrats TD Cian O'Callaghan saying that parents now face higher bills. He said that the situation showed the system was "broken".

“A large number of parents have been put in the invidious position of choosing between paying increased childcare fees or giving up work after the Little Rainbows group announced it is to pull out of the Government’s core funding scheme.
“As many as 600 children attend these creches and the increased fees — up to €80 extra per child each week — will place an intolerable financial burden on these families."

On Monday, Alec Flood, a director of Monica Campbell Ltd, which runs two of the five creches, said there had been "too much interference" in how the businesses were run.

On Wednesday, Education Minister Norma Foley claimed the government has "made huge, huge progress in terms of childcare, particularly the cost of childcare for parents". She said that the government's increase in the funding model had led to a 50% reduction which "is quite phenomenal".