5 minute read
Balancing Act; Community Childcare Providers Navigating Financial Challenges to Sustain Vital Services in North Cork
By Brighid-Ide Walsh, Development Officer in IRD Duhallow
In recent years, government policies have taken steps to alleviate the financial burden on families using childcare services, with the most recent measure being an increase in the subsidies provided to families under the National Childcare Scheme (NCS). This initiative, spearheaded by the Department of Children, Equality, Disability, Integration, and Youth (DCEDIY), aims to make quality childcare more affordable and accessible for all families, particularly those in low and middle-income brackets. While the increase in childcare subsidies has been widely welcomed by parents across the country, the practical reality of this policy for community childcare providers is more complex.
Since 2019, childcare providers, particularly those operating in the community sector, have faced a freeze on their fees, leaving them struggling with the increasing costs of providing services. Now, with the DCEDIY permitting childcare services to increase fees for the first time in years, albeit by a maximum of €0.74 per hour, there is growing concern that the intended financial relief for families may not materialise as expected. By improving subsidies, the government is addressing one of the most pressing concerns of parents – affordability. For many families, particularly single-parent households or those with multiple children in full-time care, these subsidies can be the difference between staying in the workforce and having to reduce work hours or exit employment altogether.
The social and economic benefits of keeping parents, particularly women, in the workforce cannot be understated, as childcare affordability directly influences employment rates and the financial independence of families. However, while families receive an increase in subsidies, community childcare providers have faced an entirely different set of challenges. Wages for childcare professionals have increased in line with national trends and new minimum wage laws for childcare workers; this is much deserved for the qualified and trained staff working in the childcare sector, however, it is another financial strain for the childcare facility to carry along with the surge in utility costs and the cost of materials and supplies rising steadily. Community childcare facilities face unique financial constraints and often operate on slim margins, relying on a combination of government grants, fundraising, and parent fees to cover operational costs. In response to these mounting pressures, the DCEDIY is now allowing community childcare providers to increase their fees, but only to a maximum of €0.74 per hour. While this might seem like a modest concession to help providers cope with rising costs, it coincides precisely with the recent subsidy increase offered to families under the NCS.
For many parents, the new subsidy could be entirely offset by this fee increase, effectively nullifying any financial relief they had hoped to gain. This creates an unfortunate situation where the government appears to be providing families with financial support, but in practice, the relief may not reach them as intended. Instead, the increase in fees could make it seem as though childcare providers are absorbing the benefits of the subsidy increase, when in reality, they are only trying to keep pace with rising costs after years of frozen fees. For many providers, this increase in fees is not about profit; it is about survival.
The issue facing community childcare providers illustrates a broader problem in the way government childcare policies are structured. While subsidies for families are crucial, they must be accompanied by policies that also adequately support childcare providers. Freezing fees may offer short-term affordability, but without parallel support for providers, it ultimately risks undermining the sustainability of the entire sector.
Community childcare facilities are at the heart of many local communities, providing essential services to families who may otherwise have few options. These facilities should be recognised not only as businesses but as critical components of the social fabric. If the government’s aim is to improve access to affordable, quality childcare, then it must take into account the financial realities faced by community providers and ensure that both families and community childcare services are supported in a sustainable and equitable manner. International research demonstrates that a public, not-for-profit childcare model is the most effective way to guarantee families access to affordable, high-quality childcare while also providing fair pay and working conditions for staff.
In conclusion, while the government’s increase in childcare subsidies is a positive step, it must be paired with a more holistic approach to fee management and provider support. Community childcare facilities need the financial flexibility to maintain high-quality services without undermining the affordability of care for families. Otherwise, the intended benefits of subsidy increases may fall short for both families and the childcare sector as a whole.
“As Chairperson of the North Cork Childcare Managers Network, I am proud to represent the nine community childcare facilities serving families in the Duhallow region, located in Rathmore, Ballydesmond, Boherbue, Banteer, Ballyhass, Freemount, Newmarket, Donoughmore, and Clondrohid. These facilities are at the heart of our communities, providing vital education and care to children, all delivered by our highly qualified and dedicated staff. Our teams work tirelessly to ensure that each child receives the best possible start in life, fostering their development in a safe, nurturing, and stimulating environment. However, like many community childcare providers across the country, we are facing increasing financial pressures that are making it difficult to maintain these high standards of care.
- Mary Murphy, Manager Banteer Community Childcare
