Richard Boyd Barrett
Question:652. Deputy Richard Boyd Barrett asked the Minister for Children, Equality, Disability, Integration and Youth the estimated full-year cost of increasing the spending on childcare to 1% of GDP. [24081/23]
View answerTuesday, 23 May 2023
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Over the past eight budgets, investment in Early Learning and Care (ELC) and School-Age Childcare (SAC) has risen from €260 million in 2015 to € 1.25 billion in 2023, reaching the First 5 investment target 5 years ahead of time. Despite this progress, investment in the area remains low by international standards.
In their latest calculation, the OECD report Ireland spends 0.3% of GDP on ELC compared to the OECD average of 0.8%. This calculation for Ireland excludes spending on children under 6 that are in primary school.
In 2022, Ireland’s GDP was €474 billion. To increase spending to 1% of GDP, equalling €4.7 billion, an additional investment of €3.7 billion would be necessary.
Although investment in ELC remains low, it is important to note that GDP is a misleading indicator in the Irish context. The OECD emphasises that, in the Irish context, “one should rely on other indicators” as GDP gives an inaccurate indicator of the country’s economic health.
A modified GNI was recommended by the Economic Statistics Review Group as a more useful comparator. This is designed to exclude globalisation effects that are disproportionally impacting the measurement of the size of the Irish economy. Figures on Ireland’s modified GNI in 2022 are not yet available however in 2021, Ireland’s modified GNI was €234 billion. To increase spending to 1% of modified GNI in 2021, equalling €2.3 billion, an additional investment of €1.3 billion would be necessary.
The First 5 Strategy commit the Government to at least doubling public spending on ELC and SAC by 2028. This target has already been reached, five years ahead of schedule. I am committed to continuing to increasing State funding for ELC and SAC part of a multi-annual budget process.