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budget 2024

Further doubt cast over 25% childcare cost cut as Tánaiste fails to say if Govt will honour promise

The minister said last year that childcare fees would be reduced by 50% over the next two budgets.

TÁNAISTE MICHEÁL MARTIN failed to confirm that the government would honour commitments previously made to reduce childcare costs by 50% over two years. 

The Minister for Children Roderic O’Gorman said last year the average cost of childcare fees would be reduced by 50% over the next two budgets.

At the time, he said the focus for Green Party was “affordability for parents”.

While it had been widely expected that the October budget would deliver a further 25% reduction, uncertainty surfaced within government over whether such a reduction could be achieved. 

O’Gorman is understood to have pushed hard for a significant reduction in childcare costs in a budget meeting with Public Expenditure Minister Paschal Donohoe yesterday. 

During Leaders’ Questions, Social Democrats TD Jennifer Whitmore asked the Tánaiste Micheál Martin if the government will honour its promise to the public by delivering the 50% cost reductions.

She asked if that commitment now lies in shreds, stating: 

“The context that’s important here is the minister made a commitment to reduce the cost of child care for parents by 50%. That was the promise. That was the commitment. And the question now for your government is whether you are actually going to meet that commitment,” she said.

The Tánaiste failed to commit that the government would introduce a further 25% cost reduction for parents, instead stating that “budget negotiations are underway”. 

“It’s a week to go. And there’ll be full clarity in respect to that next week,” said Martin. 

The Tánaiste said that over the last two years the government has met its commitments to reducing childcare costs. However, he said there is a need to improve the status and pay conditions of workers working in the childcare sector.

He said this will give sustainability to the childcare sector. 

“Parents did feel it in their pockets last year,” Martin said in respect of last year’s 25% cut, adding that it was “probably one of the most significant cuts in childcare costs”.

“I think we’ve made substantial progress. It is our commitment to continue to add to that progress,” he said. 

Government sources have said that a cut to childcare costs is likely to be announced in next Tuesday’s budget, however, whether the full 25% will be achieved is still uncertain. 

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