New childcare fee cap will not benefit most parents
Children's minister Norma Foley announcing the new maximum fee cap for early learning and childcare services on Thursday. The highest average fee being paid in Ireland is in Dún Laoghaire-Rathdown at €258 — well below the €295 fee cap. Picture: Sam Boal/Collins
A new fee cap for early learning and childcare will not have a significant impact for the majority of parents, new figures show.
Minister for children Norma Foley announced a maximum fee cap for new and existing services taking part in core funding. Under this, the highest possible fees will be no more than €295 per week for a full day care place that would come in at 40-50 hours a week.
However, according to figures from the Department of Children, the highest average fees being paid at the moment is in the Dún Laoghaire-Rathdown area of Dublin at €258.
The department said the fee cap will bring fees “closer to the average weekly fee of €197 for full day care”.
The figures, released to Social Democrats TD Aidan Farrelly, show that Cork, Dublin, Kildare, Meath, and Wicklow are the only counties with a current average above €197.
Mr Farrelly said that while he welcomes the announcement, the move falls short of addressing the significant issues facing families who are trying to find a place for their child or workers who do not have pay parity with their peers.
“In recent months, I have met with stakeholders in the early years education and childcare sector such as staff and unions, service providers, and families — who all maintain that the systemic issues facing the sector such as recruitment and retention, access and affordability will not be addressed with increases to funding in the current model,” he said.
“I have consistently asked the minister and this Government to consider establishing a cross-party special Oireachtas committee on the future of childcare and early years education to take a similar approach to Sláintecare which would map out a vision for the future of the sector having heard directly from all stakeholders.”
While announcing the fee cap, as well as an increase in investment of €60m, Ms Foley said it would reduce the cost for families who are facing the highest fees across the country in around 10% of early learning and childcare providers.
“It will address some of the extreme fee disparities across the sector in a meaningful way, so that there are more consistent rates in place for families in their local area,” said Ms Foley.
During the general election, there was a great deal of talk from the coalition parties, and others, about a maximum payment of €200 per child per month for early learning and childcare, a promise which Ms Foley said would be kept.
“I have been very clear that we will do that over the lifetime of this Government so it will be incremental.
"Like the steps we take today, we are starting at the very top where there is an extraordinary high cost to parents and we are beginning to bring that down as we have seen over the last number of years,” said Ms Foley.
The core funding scheme is now in its fourth year and despite a warning last year that there would be a mass exodus of providers, Ms Foley said there has actually been a net increase of 226 providers.
Among the issues raised by frustrated providers was struggling to retain staff in a competitive labour market but it is hoped that the €45m ringfenced for the increased minimum pay rates for the sector will help to remedy this issue.
