MINISTER FOR CHILDREN Norma Foley has poured cold water on any expectations of significant reductions to the cost of childcare in this year’s Budget.

Speaking to The Journal, the minister said she is “100% committed” to reducing the monthly cost of childcare to €200 per child in the lifetime of this government, but that it “won’t happen overnight”.

“Well, it was very clear in the Programme for Government, it is over the lifetime of this Government,” Foley said when pushed on the date of introduction.

Asked if that means it won’t be done until five years time, the minister said: “Well, within five years. If we can do it quicker, we’ll do it quicker.” 

During last year’s general election, almost all of the main political parties, including Fianna Fáil and Fine Gael, pledged to reduce the monthly cost of childcare to €200. 

The Programme for Government agreed by Fianna Fáil, Fine Gael and the Regional Independent Group said the government would progressively reduce the cost of childcare to €200 per month per child.

Asked if it will be a priority in this year’s Budget, the minister responded: 

“I’ll be very honest, this won’t happen overnight.

“It’s not possible. There are three elements to this – the capacity, the staff and the fees for parents as well,” the minister said. 

She continued:

“It’s very, very significant what is being done. I think people acknowledge that there were huge improvements previously, but it’s a long journey.”

The minister said no decisions have yet been made for this year’s Budget and that she has not had any budgetary discussions yet.

Asked if reducing childcare costs will be a priority for her in the Budget negotiations, Foley said: 

“Well, every aspect of the childcare budget will be a priority. As indeed, and I’d have to say there are other aspects – the disability budget, equality.

“But there is no doubt about it, Government has given a significant priority to early learning and childcare, and will continue that in this government as well”.

Foley pointed out that, on average, childcare fees were reduced by 50% because of the work of the last government and the work of the previous Minister for Children Roderic O’Gorman.

Improving pay 

In terms of getting to the €200 commitment, Foley said there are three main parts to be worked on by the Government. 

Firstly, increasing capacity in the sector and adding more childcare places. Secondly, addressing the staffing issues in the sector, including pay. And thirdly, getting to the €200 per month for parents.

On the staffing and pay issues, the Minister noted that €45m has been set aside this year for the Joint Labour Committee, which will adjudicate on an increase in pay for those who work in the sector. 

“It is my personal view that I would like to see every last penny of that €45 million being used for staff and for staff pay,” Foley said.

She added, however, that ultimately this will be for the Joint Labour Committee to decide, but that she wants this money to attract and retain staff in the sector. 

On the capacity issues and shortage of places, the Minister said the Department is providing “significant” funding for providers to extend their operations and for the creation of new providers. 

She also said she is working with childcare providers on issues they have flagged with her, such as reducing the administration burden.

“And finally then, when we have a sufficiency of staff and we have a sufficiency of places, we obviously are working towards the €200 for parents. So there are three elements to it.

“Parents want the best staff in place looking after their children, so I need to do the work around that, to ensure that they’re properly paid. Parents want to ensure that there’s a sufficiency of places, so I need to do the work.

“So these three things, I am determined to work on them in tandem, to get three of them over the line and to deliver for all three,” the minister said.

Last month, The Journal reported that nearly one in five childcare services providers in Ireland have been given State approval to increase their fees. 

When it was put to the minister that it seems as though we are going backwards on the election commitment, Foley defended the move and said it related to the average cost of childcare services in the area.

“I want to be clear about that, that was on the basis of what was within the cohort that was closest to [the providers] within their own area,” she said.

The Journal has reported extensively on the strain experienced by families around the country as they try to access the limited childcare places available — and afford the high fees.