CHILDCARE fees for around 190,000 parents across Ireland will be capped at just under €200 each week, it has been confirmed.
Minister for Children Norma Foley said parents paying the highest fees could save a whopping €1,500 each year under the new plan.
And the Fianna Fail TD said the move marks “important steps” towards the commitment to reduce the cost of childcare to €200 per month per child over the course of this Government’s five-year term.
A new maximum fee cap will now be introduced for all new services availing of State funding through the Core Funding scheme from this September.
This will 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.
These fees for parents are then reduced by State subsidies under the National Childcare Scheme and the free, universal two-year Early Childhood Care and Education 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.
This means a parents co-payment would be no more than €198.70 each week.
However, it has been confirmed that “higher subsidies are available for many parents”, depending on their level of income and the age and number of children in their family.
Confirming the new caps, Minister Foley said: “Since 2020, the amount of State funding in this area has increased from around €600 million to €1.37 billion this year.
“That has led to a 50 per cent reduction in the cost faced by parents on average and a record number of children – approximately 190,000 have benefitted from the National Childcare Scheme this year.
“So there has been progress. But I know that the cost of early learning and childcare is still far too high for many parents.”
FEE FREEZE
In addition to the new fee cap, funds available through Core Funding will ensure the existing fee freeze, introduced in 2022, will remain in place for participating services.
Minister Foley said: “The extension of maximum fee caps to all services participating in Core Funding will reduce costs for families facing the highest fees in the country.
“It will address some of the extreme fee disparities across the sector in a meaningful way, so that there are more consistent rates in place for families in their local areas.
“It is another step along the way to achieving the commitment in the Programme for Government to a maximum payment by parents of €200 per child per month for early learning and childcare during the lifetime of this government.
“Core Funding has enjoyed high participation rates to date, with 92 per cent of services taking part.”
WHAT DO MAX FEE CAPS MEAN FOR ME?
MAXIMUM fee caps were introduced for Partner Services joining Core Funding for the first time in September of last year.
Today’s announcement means that maximum fee caps will apply to all new and existing Partner Services from September.
Any fees above these caps will now be lowered.
Now, a parent availing of 45 hours of care for their child, and who is also in receipt of the maximum NCS subsidy, will not pay any more than €198.70 out of pocket costs.
The Fianna Fail TD also confirmed that a planned €60 million increase in State funding for this scheme over the next two years will bring the total amount of funding to a record €390 million.
She said: “I am confident that the increased funding available from September will allow for the continued partnership with early learning and childcare services.”
The additional €60 million includes €45 million specifically ring-fenced to support the outcomes of the committee made up of employer and employee representatives from the childcare sector.
Foley said: “We want the best of people caring for and educating children in the sector. To do that, and to keep them in the sector, they need to be paid fairly.
“This new €45 million in funding will be contingent on increased minimum pay rates for the sector being agreed by the Joint Labour Committee.
“Once new Employment Regulation Orders for the sector are agreed, this funding will specifically support employers to meet the costs of these increases to the minimum rates of pay in the sector.”
