CHILDCARE SERVICES for some of the most vulnerable children in the State are under threat because of changes to the way the Government funds community childcare facilities, according to a new study.
The report says families who have struggled hardest to escape poverty and find employment are now the most likely to lose affordable childcare places. A Study of the Effects of the Community Childcare Subvention Schemewill be published next week by the Inner City Community Childcare Providers' Network, in conjunction with the Dublin Inner City Partnership, which commissioned the research.
The research, which involved consultations with 12 inner city community childcare providers, shows that many fear they will close due to changes in the way they are funded. They also estimate working parents will see childcare fees rise by between 50 and 166 per cent over costs in 2007. As a result, it says, vulnerable children will be at risk of losing valuable access to pre-school education.
It may also make more financial sense for some parents to withdraw from the workforce or join the live register, where they would be entitled to greater subvention.
Jackie Maguire, manager of Lourdes Youth Community Services Creche in Dublin's north inner city, says many low-income families will not be able to afford the increases in childcare fees.
"Childcare costs for low-income working parents are increasing from around €80 under the old system to anything from between €140 and €200 under the new system," she said. "Many of these families in our service are struggling to get by as it is. The only option for many of them is to lose an income, or go on welfare."
In total, about 10,000 children are in Government-subsidised community childcare facilities.
Under changes that came into force over the summer, the level of Government subvention for parents is means-tested. As a result, many parents on lower and middle incomes are not eligible for any subvention and have to pay the full cost of community childcare.
The Government argues that the changes mean State funds are targeted at children most in need of support, who will receive greater levels of funding. It says the majority of service providers will benefit under the new system.
The report says many providers have no certainty about their funding for next year. It warns that cost pressures will rise in the coming year as the Government continues to decrease direct grant aid for community childcare providers. It calls on Minister for Children Barry Andrews to rebalance funding to ensure creches can continue to provide an affordable service to disadvantaged children, families and communities. It also warns a lack of investment in this area is a false economy.
"Good quality pre-school education and childcare improves outcomes for children and families," it says. "This has been accepted in the State's own policy, scrimping here will mean more families in crisis and disadvantaged children entering school."
