Childcare costs like a ‘second mortgage’

Cork County Council has called on the Government to address Ireland’s current childcare funding model, with members describing it as being completely “unworkable” for families.

At Monday’s full council meeting, elected members unanimously backed a motion calling on the Minister for Children, Equality, Disability, Integration and Youth, Norma Foley TD, to increase funding for childcare staff wages and spiralling operational overheads.

The motion, brought forward by Cllr Nelius Cotter (FF), highlighted a growing imbalance between the Government’s set goal of €200-per-month childcare and the harsh reality facing providers on the ground.

He said: “Issues like rising costs, inflationary costs, increased energy bills, insurance, and just day-to-day operational expenses is making this scheme just unworkable for the providers.”

He added that for many families in their 30s and 40s, the financial burden is becoming insurmountable.

“One of them (families) described it as a potential second mortgage because it's just so expensive when you have two or three kids that are all in a childcare provider,” said Cllr Cotter.

The motion was seconded by Cllr Anne Banbury (SD), who cited her “lived experience” as a mother of four. She warned that the sector is at a breaking point, with many providers seriously considering “closing the doors” because financial pressures are too high.

“Childcare isn't a luxury for families like mine. It's an absolute necessity,” Cllr Banbury said.

“The current level of core funding does not reflect the true cost of running a childcare service,” she added.

Staff respect

Highlighting the difficulties faced by early years educators, Aontú councillor Peter O’Donnell slammed the lack of professional recognition for the sector.

He said: “They are treated like babysitters. They are as important to our education system as any other educator further along in people’s development.”

Reform

Currently, wages for early years educators in Ireland are significantly below the national average, leading to difficulty in attracting and retaining the degree-qualified staff required.

Last year, the Government allocated €390 through the Core Funding scheme.

Minister Foley said at the time: “One of the areas where parents and families are most looking for help is with the cost of early learning and childcare. Since 2020, the amount of State funding in this area has increased from around €600 million to €1.37 billion this year.

“That has led to a 50% reduction in the cost faced by parents on average and a record number of children – approximately 190,000 – have benefitted from the National Childcare Scheme this year,” she added.

Cork County Council will now write to Minister Foley demanding a full restructuring of the funding model before more providers are forced to exit the market.