Minister pledges to cut childcare fees further as changes to subsidy to take effect next week

Parents can expect further cuts to childcare costs in the next budget beyond those which will come into effect next week, Minister for Children Roderic O’Gorman has said.

From next Tuesday, January 3rd, parents will see an average reduction of 25 per cent to their fees as the universal subsidy is being increased from 50c an hour to €1.40 per hour for a maximum of 45 hours a week.

In an interview with The Irish Times, Mr O’Gorman said he wants parents to see an average reduction of 50 per cent in their fees after the next budget, up from 25 per cent, depending on the public finances.

“That is what I would like to achieve. Obviously we will have to see going through the year what the financial situation is but I would like to significantly reduce childcare costs for parents while at the same time looking to achieve other positive objectives in the childcare sector as well.”

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He said that the changes coming into effect this coming week are “going to have a very significant impact on what parents pay on a weekly, monthly and indeed annual basis.”

“I have made it clear that I would like to continue to reduce the amount of money that parents pay for childcare. I would like to achieve other cuts in the cost of childcare in Budget 2024. I want to broaden the access and inclusion model that allows children with a disability access to early learning and care.”

Separately Mr O’Gorman said a new redress scheme for survivors of Mother and Baby Homes may be operational by the middle of this year.

“The legislation is in the Dáil at the moment, we have got it to committee stage so we hope to do report stage early in the new year and then bring it through the Seanad. We are also working on setting up the operating systems whereby people can make an application. So we would hope, by the middle of 2023, that we will be in a position for people to start making applications for their payments and medical cards.”

He said that “34,000 people, we think, will be able to apply under the legislation.”