Almost 4,000 childcare providers have signed up to a Government funding scheme that ties them to charging parents the same childcare fees as last September.
About nine in every 10 providers have signed up to the Core Funding model that is making €221 million available, as announced in last year’s budget, through contracts beginning this week.
The funding will mean 200,000 families are not paying higher fees, while 25,000 staff will be entitled to pay increases based on new pay rates under new employment regulation orders.
“This investment does have strings attached to it,” Minister for Children Roderic O’Gorman said, launching “Together for Better”, a new funding model that includes Core Funding.
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“It requires providers to freeze their fees at last year’s rates, pay rates to be enforced for staff, and a significant degree of operational and financial transparency on how services operate.”
Mr O’Gorman acknowledged that childcare workers were leaving the sector due to poor pay rates and said the new funding was aimed at ensuring higher rates of pay.
“Childcare providers are getting that pay from the State so it doesn’t interfere with the sustainability of childcare providers, nor does it need them to go back to parents and increase fees,” he said.
He said he had not discussed final figures for cuts in childcare fees in the budget later this month with Minister for Public Expenditure Michael McGrath, but reiterated that he was looking for a “substantial cut” with an increased State subvention in the National Childcare Scheme.
“I am looking to grow that subvention in this year’s budget so parents will see a noticeable difference in the amount that they are paying following this year’s budget,” he said.
