Nearly 1,000 early years childcare services have shut down over the past six years, according to newly released data.
Information obtained by RTÉ News from the Department of Children shows that 977 early years childcare providers have closed since 2019, reports RTE.
In contrast, 579 new childcare services opened during the same period.
The Federation of Early Childhood Providers (FECP) said services are being forced to close due to increasing costs and insufficient Government funding, reports RTE.
Around 40,000 children nationwide are currently on childcare waiting lists.
The Early Childhood Care and Education Programme (ECCE) is a free scheme lasting two years, available to children aged between two years and eight months and five years, reports RTE.
The programme operates five days a week and offers three hours of free pre-school education each day.
However, providers argue that Government funding of between €69 and €82 per child per week is inadequate to keep their services operating, reports RTE.
Racheal Govan, who runs the Footprints Early Years childcare service in Dublin, said her operating costs have risen while Government funding has remained unchanged.
“Last year the increase in the core funding was 5c per child so if you look at the cost of living, the cost of rents, the cost of rates, tax, now the introduction of the pensions, that’s another €12,500 that’s going out of my account,” she said, reports RTE.
“Even since last year my wages (for staff) have risen by €17,500, so where am I finding the additional money if I am getting an additional 5c per child, so that math is not working out for anyone,” she added, reports RTE.
FECP Chairperson Elaine Dunne said rising costs mean creches cannot remain viable if they are unable to increase fees.
“We see ECCE services in particular have closed down over the last five years and they are closing down because the funding is not suitable for the business model that is there,” she said, reports RTE.
“If you want to keep quality then you have to pay for quality,” she said, reports RTE.
“If you are getting €69 a week per child – and if you are in core funding you are on €81.40 a week – that is not going to keep your doors open. You can’t pay your staff wages and many of these ECCE services, the providers themselves are not even taking home a wage,” she added, reports RTE.
The Government introduced the core funding scheme in 2021 to help early learning and childcare providers cover operating expenses, with participating services required to freeze their fees.
More than 4,000 childcare services have signed up to the scheme, reports RTE.
Figures obtained by RTÉ News indicate that more than 177 childcare providers exited the Government scheme within its first three years.
Averil Sheehan, who owns Care-A-Lot childcare in Cork, withdrew from the funding scheme, allowing her to raise fees, reports RTE.
She said daily fees increased from €50 to €62.50, a move she said kept her business afloat.
“We were stuck in a historical freeze since 2017 and we weren’t allowed to increase our daily fee so that meant to me that I wasn’t matching inflation since 2017,” she said, reports RTE.
“Everything had gone up, from toilet rolls to art and craft materials, heating oils, food and I wasn’t getting enough funding to match the increase in inflation. It was either I would sink or I would have to try and swim,” she added, reports RTE.
Catherine Kelleher, who has three children attending Ms Sheehan’s creche, said the higher fees have placed significant strain on her household finances.
“That was tough going, one full pay cheque was already going to pay childcare fees and now I have to go into the second pay cheque to pay for the fees, which obviously impacts on grocery bills. You have to tighten up your budget everywhere else,” she said, reports RTE.
In a statement, the Department of Children said that 2024 recorded a five-year high in early years service openings and a five-year low in pre-school closures.
A total of 357 services opened while 131 closed, resulting in a net increase of 226 childcare services in 2024, reports RTE.
However, the department’s figures include school-age services, which cater for children over five and combine after-school and early learning provision.
When focusing solely on services for younger children, such as creches and ECCE, 96 services opened while 95 closed, reports RTE.
Regarding demand, the department said enrolments in early learning and childcare services for children aged one to three rose from 36,000 to just under 40,000 between 2022 and 2025.
Yesterday, the Government approved a State-led early learning and childcare investment programme aimed at addressing rising waiting lists and growing demand, reports RTE.
Under the initiative, the State plans to purchase buildings to be used as childcare facilities, with each site expected to provide more than 100 places.
The acquisition process will begin this year, with the department saying up to 800 places could be available by early 2027, reports RTE.
The Federation of Early Childhood Providers said implementing the plan would be extremely challenging.
Ms Dunne said she believes the Government is acting prematurely and that childcare providers were not consulted, reports RTE.
“We don’t know anything. There has been no consultation and the fact that they are rolling ahead with the cart before the horse and we are looking at them going what is going on because we don’t know as there has been no consultation. I think that is so disrespectful to the providers out there today,” she said, reports RTE.
When asked whether she would apply to become a provider under the proposed Government scheme, Ms Govan said she would not.
“I created this, I love what I do, so why would I want it to be taken out of my hands to work for someone when I have created this ethos in my policies to ensure the quality that I want to meet,” she said, reports RTE.
“Why would I want to go back and work for someone when I was happy delivering quality services prior to that,” she added, reports RTE.
Sinn Féin leader Mary Lou McDonald accused the Government of lacking the ambition and urgency required to deliver promised childcare services.
During Leaders’ Questions, she raised the issue of closures and told Taoiseach Micheál Martin: “You promised affordable childcare and you have not delivered it”, reports RTE.
In response, the Taoiseach said the State is heavily involved in childcare and noted that a new programme to provide childcare buildings was announced yesterday.
Mr Martin said the Government works closely with childcare providers but acknowledged there are sometimes “tensions”, particularly when fee limits are introduced, reports RTE.
He added that the most recent Budget maintained childcare rates at 2021 levels and repeated the commitment to introduce a €200 monthly childcare cap per child over the lifetime of the Government.
Tell us your thoughts in the Facebook post and share this with your friends.
