Maximizing returns: The benefits of improved childcare services for everyone


According to Census 2022, one in three children in Ireland is enrolled in some form of childcare, with creches or similar formal settings being the most popular choice.

However, the Federation of Early Childhood Providers (FECP) has launched a three-day strike campaign, citing chronic underfunding as their main concern.

The FECP emphasizes the urgent need to bridge the gap between state subsidies, parent affordability, and the financial requirements of childcare providers for sustainable business operations.

The childcare sector has been grappling with challenges for several years, resulting in the closure of 141 creches last year and 46 closures expected this year, according to data from the Department of Children.

Disappointed by the strike, Children’s Minister Roderic O’Gorman acknowledged the longstanding underinvestment in the sector.

This consistent neglect of providing adequate resources for the educational needs of young children is unequivocally a failure on the part of successive governments.

Numerous studies globally highlight the crucial significance of investing in preschool services, as they contribute to the development of essential social, cognitive, and emotional skills, laying the groundwork for future learning. Mr. O’Gorman acknowledges these facts and mentions the €400m increase in investment made over the past three years.

Last year, childcare providers agreed to freeze their fees to access a new €221m core funding initiative from the Government. However, some providers have not received pay increases since 2010. The sector believes that the current funding model benefits parents but does not adequately ensure the sustainability of childcare businesses.

The core arguments put forth by the sector revolve around inadequate funding and excessive regulatory requirements.

The escalating cost-of-living crisis has made it no longer viable for many providers to continue operating. Taoiseach Leo Varadkar has expressed his belief that the strike is unwarranted and has caused significant inconvenience for parents. However, numerous protesting mothers gathered outside the Dáil, insisting that the Government must take more decisive action.

Sinn Féin leader Mary Lou McDonald criticized Government policy in the Dáil, pointing out that parents are currently paying childcare fees equivalent to a second mortgage. In response, Mr. Varadkar stated that the Government aims to reduce childcare costs by 50%, and last year witnessed a decline of approximately 25%.

The shortage of creches and childcare facilities indicates the high demand for these services, with parents even enrolling their children before they are born.

Research demonstrates the immeasurable negative impact of inadequate daycare on a child’s life, while also highlighting the monetary cost of good-quality daycare. It is evident that improvements can be made in this regard.

Reference

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