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09th Oct 2021

Childcare sector expected to get major boost in next year’s budget

Trine Jensen-Burke

State spending on childcare is expected to be increased in this year's budget

The is great news for families of young children.

Ireland is one of the most expensive for childcare in all of the EU, with parents having had to pay upwards of €1200 a month for a creche space for one child these past few years.

However, this might be about to change as the Government has more to spend on the sector in next year’s budget than previously thought.

Ministers have consistently said that reducing childcare costs is a priority and Minister for Children Roderic O’Gorman said last month he hoped to double state spending on the industry to €1 billion annually.

Speaking to Newstalk, Frances Byrne, director of policy at Early Childhood Ireland, gave a cautious welcome to the news:

“We’re hearing positive sounds and that’s very welcome as I said… What success will look like for Early Childhood Ireland – and we would argue for parents, children, providers and staff on Tuesday – is the Minister for Finance saying, ‘Here’s the increase for 2022 and here’s the plan for how we double that investment.’

“So that by 2028 that commitment has been met.”

She added:

“Ireland, despite the fact that the last Government, believe it or not, increased funding by over a 100 percent, which was very welcome, we still find ourselves across the OECD bottom of the class in terms of investment. So to give some figures, Ireland spent about 0.1% up until last year; when it looks like the final figures come out it will be 0.2% of Gross Domestic Product [this year]. Sweden spent 1.9 percent.”

Women are kept out of work because of cost of childcare

Speaking to reporters earlier this week, Tánaiste Leo Varadkar dropped some hints about what people can expect when the budget is revealed next week:

“What I can say is one of the things we are of course going to examine in the context of the Budget is the cost of childcare.

“It’s still the case for many people [that] childcare is like paying two mortgages or having to pay the rent twice every week and it’s also, from an enterprise and employment point of view, a barrier to people returning to the workplace.

“We’ve skill shortages across the economy.

“Many parents, particularly women but not exclusively women, can’t get back into the workplace because of the cost of childcare.

“So I think it is something that you’ll see the Government focus on in the years ahead.”