Childcare costs could rise 30-40% unless Government boosts core funding, say providers

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Childcare costs could rise 30-40% unless Government boosts core funding, say providers
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State grant for childcare industry provided to improve affordability and support sustainability in sector

Childcare providers have warned that prices here could increase by 30 to 40 per cent for parents if there is no intervention from Government on the core funding model. In a joint statement, the providers said this was due to “unsustainable rising costs and chronic underfunding of the sector”.

One of the organisations reported results from a recent survey showing that 40-50 per cent of their membership would be withdrawing from core funding in September, while another indicated that 75 per cent were now reviewing their participation in the schemeSmurfit profit slides ahead of merger, and warning over green fuel confusionCore funding is a State grant for the childcare industry to improve affordability and support sustainability in the sector.

“The way core funding has been allocated has left us running at a loss,” said Ms Dunne. Many childcare businesses are still charging 2017 rates because there was no annual increase in childcare fees in the years before the pandemic. Investment has been increased by 28 per cent, rising to €33 million in core funding for September 2024 to August 2025, said a department spokesman. There is more than €1.1 billion of public money invested in childcare, it added.

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