“THERE WILL BE a further reduction in the cost of childcare for families next year, you can be sure of that,” Taoiseach Leo Varadkar said today. 

However, questions still remain as to whether Children’s Minister Roderic O’Gorman can push for a further 25% reduction in childcare fees as part of Budget 2024. 

In last year’s budget, a 25% reduction in the cost of childcare under the National Childcare Scheme has been announced to much fanfare by all in government. 

It came at a cost of €121 million and saved families up to €175 a month.

O’Gorman set a target of hitting a 50% average reduction in the cost of childcare over Budget 2023 and this year’s Budget 2024.  

When asked by The Journal today if childcare is still a priority for government this year and whether cost reductions will lose out to tax cuts, Varadkar said one of his priorities is making sure that the government can put money back into the pockets of families. 

He said this can be done in a number of ways – by reducing taxes and by reducing the cost of childcare.

“We did both in the last budget, we intend to do both in the next budget.

“There will be a further reduction in the cost of childcare for families next year, you can be sure of that. But as is the case with any particular budget matter, the figures aren’t agreed yet.”

There are no figures agreed for any tax cuts, pension or social welfare increases either, he added.

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Varadkar said he is committed to the National Childcare Scheme, statin that childcare costs were reduced by 25% last year.

“We intend to reduce them again next year, that’s a further reduction on top of the 25%,” he said, but failed to state whether the 50% target would be reached. 

O’Gorman said that he is keen to ensure that child minders, who aren’t covered under the current cost reduction scheme, are included.

“That’s something that we want to address,” he said. 

The minister said he also wants to ensure that more vulnerable children and children with a disability can access the service earlier.