Continued Investment Reduces Childcare Costs by Minister Roderic O’Gorman
Since becoming Minister for Children, I have been focused on cutting the cost of childcare for parents, increasing the level of investment in early years services to support providers and improving pay levels for childcare professionals, to recognise the real value of the work that they do. The changes I’ve led represent the most far-reaching reform program for childcare ever undertaken in this country. Yearly investment has grown by 70% - from €638m when I took office in 2020 to €1.1 billion in 2024.
Two years ago, I set out an ambition to halve childcare costs, recognising the huge expense they represent for so many parents. In Budget 2023 last year, I took the first step towards this, increasing the National Childcare Scheme subsidy to reduce parents fees by 25%.
Through new measures announced in Budget 2024 a few weeks ago, by September of next year, the ambition will be a reality. This Government will have cut childcare fees in half, benefiting tens of thousands of families across the country.
While advancing universal policies like this, the measures I have taken have equality at their core, because affordable childcare will count for little if our most vulnerable citizens don’t have access to it.
That is why I have provided an additional €14 million to support children with a disability accessing early learning and care through the AIMs programme. This will allow children with a disability to access early years beyond ECCE hours and out of term time.
It is also why I was proud to announce a brand new initiative– the Equal Participation Model – a DEIS inspired model for childcare. This will target investment and supports for childcare services who cater for children from disadvantaged backgrounds and minority groups.
Another important achievement in the recent Budget is that parents who use registered childminders will be able to start to benefit from the National Childcare Scheme subsidies from September 2024. I know that childminders provide extra flexibility to many parents, and it is important that we support parents in terms of the particular childcare choices they make for their kids.
In 2022, I introduced a new source of financial support for childcare services – Core Funding – recognising the real pressures that many services face. In Budget 2024, I have been able to secure an additional €44m for Year 3 of Core Funding. This will support services to increase pay for childcare professionals, meet additional cost of living pressures and support growth in capacity. I have also indicated I will use some of this additional money to continue measures I began in last years budget to support smaller services.
A child’s early years are their most formative. Achieving the very best quality of early learning and care for children gives them the best start in life. I’m pleased to be able to continue to invest in childcare services, in the staff who run them and also to support parents access affordable childcare. All of this will benefit child across Ireland – now and into the future.