Extending subsidies to childminders will cut childcare costs for families, says minister

A significant investment in the National Childcare Scheme is also being planned.

With parents paying an average of nearly €800 per month per child, making childcare more affordable for families is now a key priority for the Coalition.

Children's Minister Roderic O'Gorman says he is working to extend last month subsidies beyond creches so that parents who use childminders also see a significant reduction in costs.

Mr O'Gorman is seeking to cut childcare fees by half over the next two years, under measures being developed as part of September's budget.

National Childcare Scheme

It is expected that a significant investment in the National Childcare Scheme (NCS) over two budgets will slash creche fees by hundreds of euro each month and will form part of the cost-of-living budget plans being drawn up.

With parents paying an average of nearly €800 per month per child, making childcare more affordable for families is now a key priority for the Coalition.

It is understood that Mr O'Gorman is also looking to speed up the implementation of the Childminding Action Plan so that parents who use childminders will be able to avail of the NCS subsidy sooner.

The plan focuses on introducing tailored regulations, training requirements, and registration for all paid, non-relative childminders.

The ESRI estimates that almost a quarter of non-parental care for three-year-olds is provided by childminders, however, fewer than 80 childminders are registered with Tusla, which is required to receive funding under the NCS.

It is not yet clear whether changes can be implemented quickly enough to allow parents who use childminders to benefit from the childcare package due to be announced in Budget 2023.

Roderic O'Gorman is seeking to cut childcare fees by half over the next two years, under measures being developed as part of September's budget.

A spokesperson said the minister hopes to be able to provide the NCS subsidy to childminders earlier than indicated in the action plan, however, "it will take time to do this".

The spokesperson added that clarity on this will be provided ahead of the budget.

Mr O'Gorman has already stated that a key priority for him is to "substantially" cut the cost of childcare for all parents.

Speaking to the Irish Examiner last month, Mr O'Gorman said: "We are acutely aware of the expense for parents, particularly if parents have more than one child in childcare. 

"So this will be a very significant measure to cut the cost of living for families."

The annual profile report for the early-years sector now puts the average weekly fee per child for full-day childcare at €186.84.

However, the fees charged vary significantly depending on the location and type of service, with care for children under the age of one more expensive, while parents in urban areas are hit with higher fees.

Mr O’Gorman said securing a large childcare package in the upcoming budget is a key demand for the Green Party.

There is broad agreement across the three parties on the need to substantially cut the cost of childcare for parents in this year’s budget," he said.

Parents did not see any decrease in creche fees last year as the budget instead focused on providing core funding for providers, however, Mr O'Gorman has said the introduction of a freeze in fees, due to come into force this autumn, is “the first step” in making childcare more affordable for parents.

“The fee freeze for this September will mean that when we secure this package in Budget 2023, of a very significant investment in the NCS, that’s the direct subsidy parents receive to reduce the cost of childcare,” said Mr O’Gorman.

It is understood that the minister is also working on establishing a new agency, Childcare Ireland, that would be responsible for overseeing the sector.