Creches may close indefinitely due to ongoing funding row

Ottoline Spearman

Creches could close indefinitely until the Government meets their demands in the ongoing row over funding.

The Federation of Early Childhood Providers said that owners are struggling to keep services going amid rising business costs.

The warning comes as new figures show that 151 creches have withdrawn from the Government’s scheme, saying it is not fit for purpose.

Speaking on Newstalk, chair of the federation Elaine Dunne said that the current funding isn't enough to meet "cost base for the businesses".

"When your margins are being cut back all the time by the Department of Children, then you can't keep all of the high-quality services open," she said.

Ms Dunne added that during the organisation's meeting last Tuesday night, they spoke with small service providers in rural areas. One such provider had only opened in September but was already €52,000 in debt.

The scheme, which began in 2022, aims to improve the affordability of childcare as it has frozen fees since September 2021. Providers must seek approval from the Department of Children if they wish to increase their fees.

Creche fees have been steadily rising due to organisations pulling out of the Government scheme, meaning that increased costs fall on the parents.

The Irish Times reported that for some parents, creche fees had risen to more than their mortgage repayment fees.

In January this year, creches had an average of 42 places for every 73 children, an average of 1.8 children per creche space.