Cap on creche fees to be examined under government deal

The new government will examine setting a cap on childcare fees parents pay regardless of their income, with a report analysing the legal and economic ramifications of such a move to be published later this year.

Under the programme for government agreed between Fianna Fáil, Fine Gael and the Green Party a new agency called Childcare Ireland will be set up to lead reforms in the sector. The agency will be responsible for the development of a high quality childcare sector, and will be tasked with mapping out long-term career paths for childcare staff.

A potential cap on creche fees will be considered based on similar caps in other European countries, with a “policy, legal and economic analysis” to be completed into the proposal this year.

The programme for government document says the parties recognise the “significant impact” the coronavirus pandemic has had on the childcare sector, and it commits to supporting providers to reopen their facilities. The document promises to “reduce the regulatory burden on providers”.

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The deal, which must be ratified by the membership of the three parties, promises to reform the childcare sector “to create one that brings together the best of community and private childcare provision”.

The new system would focus on “substantially” reducing costs to parents, reducing inequalities and improving the retention of staff in the sector.

The three parties said they would continue to invest in the National Childcare Scheme in order to reduce childcare costs for parents.

The plan includes a resource-dependent commitment to expand the scope of the Early Childhood Care and Education scheme currently in place for three- to five-years-olds.

Subsidies

Other policies set out in the programme include examining subsidies for childminders, with a report on that proposal to be published by the end of the year.

The three parties agreed to determine a minimum rate of pay and employment terms and conditions for childcare workers through a Joint Labour Committee and employment regulation order. A new apprenticeship model for childcare and other early-years careers will also be drawn up.

Tax changes for the sector include a new home carer tax credit to support couples who opt for one parent to remain at home rather than working and availing of childcare subsidies.

The programme for government also promises to ensure the system of inspecting and reporting on standards in childcare facilities is transparent.