Dáil Éireann Debate, Thursday - 31 March 2022
322. Deputy Denis Naughten asked the Minister for Children, Equality, Disability, Integration and Youth if he will publish the results of cost of childcare surveys compiled by his Department within the past five years; if it is the case that while costs in regional and city locations are similar, the differential in parental charges is considerable; and if he will make a statement on the matter. [17411/22]
View answerCrowe was commissioned by the then Department of Children and Youth Affairs to undertake an independent review on the cost of providing quality childcare in Ireland in 2018. The brief for the Review included:
- analysing the current costs of providing childcare and the factors that impact on these costs;
- the development and delivery of a model of the unit costs of providing childcare that allows analysis of policy changes and variation in cost-drivers, including the potential impact of professionalisation; and
- providing an objective, high-level market analysis of the childcare sector in Ireland, including analysis of fee levels charged to parents.
The project has provided a robust evidence base for the development of policy and implementation of initiatives to support the delivery of high quality ELC and SAC in Ireland.
The final report, Independent Review of the Cost of Providing Quality Childcare Services in Ireland , was published on 19 October 2020.
The report found that average unit cost per hour in the cost modelling tool is 63 cent higher for providers operating in urban settings versus those in rural areas. The urban/rural split is based on the CSO classification of services. The average unit cost in urban settings is €4.37 as opposed to an average unit cost of €3.74 in rural settings. While this shows there is a difference in cost for those operating in urban and rural settings, it does not take into account the variation in cost within these settings.
Data on provider income and cost was also collected in 2021 by Pobal to enable similar analysis. A further round of data collection on income and cost drivers will take place in April 2022 to gather to most recent information.
Information on fees charged is collected as part of the Annual Early Years Sector Profile, administered by Pobal. The Deputy is correct in saying that fees vary across the country. According to the 2019/20 Sector Profile, average fees are higher in services located in urban areas – 13% higher for full day care, 12% higher for part-time provision and almost 7% higher for sessional care. It is worth noting that the use of averages can mask significant variation in fees between providers.
As part of Budget 2022, I was pleased to announced Core Funding, a new supply-side funding stream available to Early Learning and Care (ELC) and School Age Childcare (SAC) providers from September. It is informed by recommendations of an Expert Group to design a new funding model for the sector that were adopted by Government in December.
The introduction of fee management measures is one of the recommendations of the Expert Group, as approved by Government. Fee management will start with a requirement for providers to maintain fees at or below September 2021 levels to access the new Core Funding scheme. Further information on proposed fee management mechanisms in the longer term is available in the Group's report, available at: first5fundingmodel.gov.ie.
