Cork TD issues warning as parents face huge increase in childcare costs

Parents are facing a huge increase in childcare costs due to early-years providers withdrawing from the Government core funding scheme, with one family facing a 70% fee increase, a Cork TD has said.

The core funding scheme is a grant to Early Learning and Care, and/or School Age Childcare, providers towards their operating costs.

Early-years providers have criticised the scheme, saying the funding provided is insufficient to cover their costs, but that being signed up to it prevents them from being able to make income elsewhere as the scheme is their sole source of funding and must cover staffing, rent, and other expenses.

Social Democrats TD for Cork East Liam Quaide said he has been contacted by constituents facing very significant creche fee increases due to their children’s creche withdrawing from the Government core funding scheme.

In one creche, fees are rising from €149 a week for a non-Early Childhood Care and Education (ECCE) programme child to €257, he said, adding: 

“Fees for an ECCE child are increasing from €116 to €225. One family who contacted me are facing an increase of fees in excess of 70% for their child, with one month’s notice.”

Mr Quaide said that his party colleague Aidan Farrelly, Kildare TD and the Social Democrats spokesman for children, has long been highlighting the fact that core funding rates paid to creches have failed to keep pace with rising operational costs, and “many childcare facilities around the country are facing closure if they continue with core funding”.

The Echo previously revealed that 28 Cork preschools closed in 2023 and 2024, and that 345 educators left or changed jobs in 2023/2024. Of these, as many as 140 held NFQ Level 7 or higher qualifications.

Mr Farrelly has called for a Government plan for the implementation of a public model of childcare, one that includes decent pay for childcare workers. He has also proposed establishing a special cross-party committee to develop a short-, medium-, and long-term policy for the future of childcare in Ireland.

Mr Quaide said the Government needed to intervene to support providers and parents, adding: “Early-years education is of foundational importance to a functioning society. Childcare workers are undervalued by this Government.

“Their work is highly skilled, has a far-reaching impact on children’s wellbeing and development, and should be remunerated as such.

“We need the minister for children to reckon with the crisis in childcare fees and the unbearable strain this is adding to the cost of living for families in Cork and across the country.”