SOME FAMILIES WHO are facing the highest childcare costs in the country will see their weekly fees reduced from September.

The reduction will impact families in around 10% of early learning and childcare providers that are in receipt of core funding from the State. 

The Department of Children today announced the details of a new maximum fee cap for childcare services that are participating in the State’s childcare scheme.

A new maximum fee cap will be introduced for all new and existing services receiving State funding from this September, which will further lower the maximum fees that can be charged depending on the number of hours provided. 

Under these new maximum fee caps, the highest possible fees will be no more than €295 per week for a full day place of between 40-50 hours per week. This will bring these fees closer to the average weekly fee of €197 for full-day care, according to the Department.

These fees for parents are then further reduced by State subsidies under the National Childcare Scheme and the free, universal two-year Early Childhood Care and Education (ECCE) preschool programme.

A parent being charged the maximum permissible fee of €295 per week for a full day place would be entitled to receive the universal National Childcare Scheme subsidy of €96.30, meaning that in reality they would pay no more than €198.70 per week.

Higher subsidies are available for many parents, depending on their level of income and the age and number of children in their family.
The Irish Congress of Trade Unions has welcomed the move but said it is not a silver bullet.

“Not all parents will feel a difference in their pocket in September and even for those who will benefit, fees will remain too high for most working families,” said general secretary Owen Reidy.

Social policy officer, Dr Laura Bambrick, added: “As Ireland moves to catch-up on years of underinvestment to transform childcare, the spotlight has shifted to who is providing childcare services.

“If public provision doesn’t fill the gap in demand then private equity investors, attracted by significant sums of taxpayer money with few constraints, will.”