Budget 2024: Good news for parents regarding childcare, but providers are concerned

There has been a mixed reaction to Budget 2024’s promises regarding childcare, which have brought welcome news for parents, but too little too late for those who work in the sector.

Families receiving the National Childcare Scheme (NCS) universal subsidy will see a further 25% average reduction in the cost of using full-time early learning and childcare services.

All families accessing registered early learning and childcare will receive a minimum hourly subsidy of €2.14 off their out-of-pocket costs, rising from a current hourly rate of €1.40, which, the Department of Children says, will mean up to €5,007 off the annual bill per child for families on the minimum or universal subsidy.

Children’s Minister Roderic O’Gorman, said: “Delivering on my promise to bring further reductions to the cost of early learning and childcare in 2024 as well as opening up the NCS to families who use childminders has been my priority in Budget 2024.

“Changes to the NCS, from September 2024, through the universal subsidy, will substantially reduce out-of-pocket costs — by 25% on average — and will benefit more than 150,000 individual children”.

The Access and Inclusion Model is also set to be expanded so that children with a disability can access their supports beyond time spent in the ECCE programme, in term and out of term.

Finally, the Equal Participation Model (EPM), which will assist services to enhance support to all children who may be vulnerable or experiencing disadvantage, will also begin in September 2024.

Children’s Rights Alliance chief Tanya Ward said: “Securing a further 25% cut [to childcare costs] in Budget 2024 will go a huge way to alleviating the pressure on families. The budget announcement includes an initial €4.5m to get the new EPM up and running, which will see a DEIS-style approach to early childhood education and care.”

But she clarified: “Once-off payments will only ever have a fleeting impact on the children and families who are already struggling.”

Meanwhile, Elaine Dunne, founder and chairwoman of the Federation of Early Childhood Providers (FECP), said she was “disappointed” to not even get a mention in the main budget speeches after all their recent protesting against funding in the sector.

Speaking at a press conference shortly after the budget speeches, Mr O’Gorman, after announcing the cuts to costs for parents, said he was “also concerned about the people working in the sector”.

He revealed that €303.31m has been allocated for core funding in 2024, with the additional funding of €14.65m being made available from September 2024, translating into an increase of €44m, or 15%.

This additional funding is to be used for “delivery of a range of enhancements to support improved affordability and accessibility for families, improved pay and conditions for the workforce, and improved sustainability for providers.”

However, according to small providers in particular, the increase in core funding will only mean a small amount of extra funds for them, which will not cover rising rent and energy bills, or increase the pay of their staff.

Mairead Davis, who owns Bright Beginnings in Douglas, says the figures are “very disappointing” and that “this will put small providers under a lot of pressure to stay open”.