'Increase in childcare scheme funding — but no preschool places'

Averil Sheehan of Care-a-lot Childcare outside Innishannon, Co Cork. Picture: David Creedon

For Averil Sheehan, the 44% increase in funding for the National Childcare Scheme which many parents took to be new funding was nothing of the sort.

The owner of Care-a-Lot Childcare in Upton, Co Cork says Budget 2025 actually gave very little to parents or childcare providers - the increase was announced previously.  

"There is in fact no revenue for providers and no mention of them in Budget 2025. They did say they were going to increase capacity, but I gather that this only applies to school-age services. The early years sector has been left stagnating once again.” 

She said it is very disappointing at a time "when there are no preschool places as it is". 

"To me, it was lunacy and a very disappointing result for providers. I feel like this was a people’s budget.

From what I can see they were trying to do their best for the people to get votes so their party can get into power again with no regard for the provider. There was nothing in it at all for small businesses.” 

The creche owner described the emotional toll the childcare shortage is having on families who have been left with nowhere to turn.

Almost 500 children across Cork city and county had to transfer childcare services last year.

It follows the closure of preschools and creches that impacted 1,797 children in 2023. A further 350 youngsters were affected by after-school services.

Averil is fearful that the situation will escalate without Government intervention.

“The childcare sector is crumbling but nothing is being done,” she said.

“Parents are incredibly stressed. I’m seeing that every day. I don’t think the Government is in the land of the living and families are suffering as a result.

Parents are ringing Averil in distress looking for a place for their child — but there is nothing she can do.

"Parents are caught in a Catch-22 situation. One woman was on the phone to me crying recently because she had tried 16 creches within a 50-mile radius of my place and was turned away from all of them. 

"She was willing to drive an hour in the morning and an hour in the evening just to be able to drop off and collect her child. I had to tell her there were no places available and I wasn’t able to help her. She begged me to bump her up on the waiting list but there was nothing I could do.” 

She is also concerned about the level of core funding for childcare facilities.

“It needs to be raised according to inflation. Nothing is the same price as in 2017. Everything has gone up from heating right down to arts and crafts materials. Places are being taken away from children as more creches and pre-schools close down. 

"The Government is failing to realise that we are a business like any other. They have failed to take into consideration the heating and lighting, not to mention the pension contribution that employers are expected to pay.”

Staff recruitment issues

She also highlighted the issues for providers trying to recruit staff.

“The staff crisis is very real. Childcare workers should be on way more money, but the providers can’t pay them, simply because they are not getting the funding. We are curtailed in raising our prices so we can’t even help ourselves by adjusting the fees to pay them better."

The Cork woman described how the crisis has come to a head over the last few months.

“Very little has changed under the new Government. Providers were promised the sun, moon and stars. They came through with the national childcare scheme for relief for parents which was welcomed.

"However, they didn’t come through for the providers. Since 2017, over 475 creches closed down because they couldn’t keep going as they were.

"I’m turning away families right left and centre. Just this month alone I turned away 120 people looking for childcare places.”