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28th Dec 2022

Creche fee reductions are set to come in on January 2nd

Ellen Fitzpatrick

It’s happening.

Parents who have their children in creche will get some relief as we head into the new year as creche fees are set to be reduced by 25% from next Monday.

The much anticipated cut to childcare fees was announced during the Budget 2023 back in September and as of Monday, January 2nd, it will be rolled out.

The cut is part of an increase in taxpayer-funded childcare, with the Universal Subsidy being increased from 50c an hour to €1.40 per hour.

“It’s not promises – it’s real delivery, the biggest cut in childcare fees in the history of the State,” Minister for Children, Equality, Disability, Integration and Youth Roderic O’Gorman told the Irish Independent. “I’ve secured the largest increase in one-year investment in childcare in the history of the State.

“That subsidy will come off everyone’s bills. Now some people’s bills are higher and lower. So what we’re saying is it will be an average [decrease] across the country – 25%.”

Those with children older than six months but younger than 15 who are registered with Tusla and in contact with the Department of Children are all eligible for this reduction.

Minister O’Gorman said that small ECCE (Early Childhood Care and Education Scheme) services will now receive almost double funding, from €14 million to €27million.

Almost 90% of Irish childcare providers have signed up for the core funding, but despite this around 500 ECCE childcare providers closed for a day in protest of the new funding model last month.

Some claim the scheme is unfair and leads smaller childcare facilities to lose their higher capitation and support payments.