Childcare Crisis Deepens as Providers Quit Government Scheme and Fees Soar
DUBLIN — Ireland’s childcare affordability crisis is worsening as an increasing number of childcare providers withdraw from the government’s Core Funding Scheme, forcing parents to pay hundreds of euros more each month.
The Department of Children has confirmed that 51 providers have left the scheme in the past two years, with many now charging fees of up to €300 more per month. These facilities—once subsidised to provide affordable early learning and school-age childcare—say the government grants are no longer sufficient to cover rising operational costs.
Under the current structure, childminders charge between €5 and €8.50 per hour per child, while crèches and daycare centres can charge up to €15 per hour, including food and other essentials. Nanny or home care services range between €11 and €20 per hour, but government subsidies cover only €2.14 per hour, leaving parents to pay the difference. For families with no income, the maximum subsidy is approximately €5 per hour.
Since September 2021, the government has capped fee increases among participating providers to maintain affordability. Those seeking to raise fees must obtain approval from the Department of Children. Last year, around 20% of applicants (850 institutions) were granted permission to increase their fees.
From this September, a new maximum fee structure has been introduced under the Core Funding Scheme, determined by the number of childcare hours provided. However, industry groups warn that many providers may continue to withdraw, citing unsustainable costs.
Shortage and Soaring Demand
Ireland currently has more than 4,200 childcare providers in the scheme, but the exits have caused acute shortages, especially in Dublin, Cork, Galway, and Wicklow. An estimated 77,000 children are now on childcare waiting lists nationwide.
A spokesperson for the Department of Children expressed regret at the withdrawals, noting that 84% of institutions remain under the scheme. Nonetheless, the shortage has left parents with few options — either quit their jobs to care for their children or pay the dramatically higher fees.
Providers Say Funding Is Inadequate
According to Elaine Dunne, Chairperson of the Federation of Early Years Childhood Providers, the government’s funding levels are “nowhere near enough” to sustain quality childcare.
“If sufficient investment isn’t made, more providers will continue to withdraw,” Dunne said.
She added that the government’s election promise to reduce childcare fees to €200 per month is “simply unrealistic.”
Labour TD Mary Sherlock echoed these concerns, saying many providers tried to stay in the scheme but could not remain financially viable.
“Parents are being left with no affordable choices,” she said.
Costs Escalate for Parents
In Dublin, some childcare centres have increased weekly fees from €190 to €300, bringing monthly costs to around €440 or more. The average cost of full-time childcare for children under two has now exceeded €490 per month — among the highest in Europe.
While some critics accuse providers of profiteering, many operators argue that leaving the Core Funding Scheme has given them “greater flexibility” and relief from what they describe as burdensome regulations.
Irish Samachar English News
Comments are closed.