Childcare providers say there are ‘serious concerns’ over viability of businesses

Early childcare providers who are protesting on Friday over the current funding provisions said there are “serious concerns” around whether they will be able to reopen their businesses again next year.

The Federation for Early Childhood Providers has organised a number of protests in recent weeks over the new funding system which was introduced two months ago. Friday was the fourth protest by providers, with another due to take place on November 25th.

A new €221 million core funding scheme that came into effect last month aims to make childcare more affordable for parents, increase capacity, improve pay and conditions and provide greater financial stability for service providers.

However, the federation said that under the new Early Childhood Care and Education (ECCE) funding model, which they said removed the higher capitation rates, some facilities are now receiving less than they were previously.

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Rowena Fisher, who owns Phylls’ preschool in rural Cork, said the decision to close on Friday was a “last resort” and they would prefer to have the children in school.

“It’s very sad but if something doesn’t change, I’ll have to close my school in June. It’s very difficult to keep the doors open at the minute,” she said.

“I absolutely love my job, it’s certainly not for the money. I paid wages this week and I couldn’t even take a wage myself. We’re only asking for €7 per child, per week. There’s so many millions going in [to the sector] but not all of us are getting it.”

Bernadine McElroy, who has run First Impressions Montessori in Tuam, Co Galway, has already informed her parents that she will not be able to reopen after June.

She used to get €9,400 for the year under the capitation, with an additional €2,420 from the programme support payment. However, under the new system she is entitled to a core funding of €10,681, resulting in a loss of more than €1,000.

“I’m losing money,” she said. “And then you’ve the higher costs, wage increases, sick pay. I’m ECCE fully meaning I can’t increase fees, as I’m bound by regulation. It’s very disappointing. I don’t want more closures following me.”

Miriam Durand, whose youngest child attends Ms McElroy’s facility, said there was an “initial scarper” trying to decide who was going to take her child due to the preschool’s closure.

“You know that panic that everybody gets when something affects their childcare, their norm. But I’m still 100 per cent behind what the women are doing because I feel they are being completely disregarded,” she said.

Ms Durand added that it is better to take one day of inconvenience, than for smaller, rural providers shutting permanently due to funding woes.

Elaine Dunne, chairwoman of the Federation of Early Childcare Providers, said over 80 providers have had to shut their doors this year, and more will have to close if there is no change to the amount of Government funding.

In 2021, 62 providers closed, with 77 closures in 2020 and 77 in 2019, she said.

“We are looking for €76 per child in ECCE services. And then the core funding on top of that would bring these services up to €85.75 and would quite possibly make them viable until next year. It would keep these services open,” she added.

Speaking about the action, Minister for Children Roderic O’Gorman has appealed to the sector not to go ahead with the further protest later this month.

Mr O’Gorman described the closure of hundreds of childcare services as “unwarranted” as there had been “extensive engagement” with the sector.

The closures were “disappointing”, he told RTÉ Radio 1’s Morning Ireland as the Government had prioritised the childcare sector, with an increase of €13 million in funding to ECCE services this year – up to €27 million from €14 million last year – with further investment announced in Budget 2023.

Mr O’Gorman said he did not accept the rationale for the protests. Budget 2023 had included €1 billion for childcare which was supposed to reduce fees for parents and offer an increase in pay for staff.

There was €259 million in core funding, which came as a recognition of the “significant under investment” in childcare in Ireland in the past. Core funding was the best way to support services, he said.