Budget 2025: Preschools and childcare services warn of further closures without funding

Parents will be hoping for further investment in the early years and childcare services sector to cut costs in Budget 2025.

However, Cork has recently seen multiple preschool closures.

Service providers say they expect more to come if the sector is not better funded.

Susan Murphy, owner of the Spraoi Pre-School in Ballincollig, said: “We would first of all want higher pay for staff, so that we can retain the staff we have and also attract staff if the wages are reflected in the work we do.”

She explained that Early Childhood Care and Education Programme (ECCE) rates have not kept up with inflation or Government promises, and providers get just €69 per week per child which has to cover rent, wages, insurance, tax, and a range of other charges.

“Over 75% of providers like me are small owner operator services. The sad thing is 30% of smaller providers said they expect to close their setting within the next three years, so it is clear there is a crisis on the way.”

She added that staff and owners have to sign on for social welfare for the summer months, with Mairead Davis — who owns Bright Beginnings in Douglas — agreeing that 52 weeks pay rather than 38 would be very helpful.

“I suppose I struggle with no income during the summer, then I’m catching up for a few months on bills,” Ms Davis said, adding: “We are all hoping definitely for an increase in ECCE payments.

“There has been no increase in years. The core funding has helped, but small providers are still struggling to meet high costs and wages.”

Ms Davis added that other providers she knew had agreed, saying that with additional funding they could better recruit and retain staff.

She called for “less bureaucracy and paperwork, more recognition of the valued work of early years, and more supports for children with additional needs”.

Rowena Fisher, who owns Phyll’s Preschool in Bealnamorrive, said that simply “to feel like we’re being listened to would be amazing”.

“The current funding distribution is just so unfair. Smaller operators need to receive the necessary support to retain their services, and the current model is not working.”

An exemption to some of the administrative work for smaller services who can’t afford a full-time admin staff member would also help, she said, explaining: “It’s either taking time away from the children or long evenings and weekends of work, which takes away from your own family.”

Ms Fisher agreed that an increase in ECCE funding was necessary, saying that this was their request for last year’s budget as well and “we’re still asking for the same thing — nothing has changed”.

“It’s wonderful to see fees coming down for parents but we can’t keep our services running. I’m turning families away, I’m full for years to come and my service is still not viable.

“I have an amazing teacher who works with me and I wish I could pay her more, but I can’t. I’ve also lost fantastic teachers who went into other sectors because they want to be valued.” She added: “I’ll have my fingers and toes crossed that this budget will go our way — it will be make or break.”