Government Allocates €190,000 for Childcare Affordability Research

The Government is committing up to €190,000 to conduct research aimed at determining whether the National Childcare Scheme has successfully made childcare more affordable and accessible for families. Additionally, the study will assess the scheme’s impact on female participation in the workforce. The Department of Children has initiated a tender process for the project, which is set to commence in January 2024, with a final report anticipated by March 2027.

This research aligns with the Government’s broader goal to progressively reduce childcare costs to €200 per month per child. According to official statements, a detailed action plan will be developed to foster an affordable, high-quality, and accessible early learning and childcare system throughout the nation.

Background of the National Childcare Scheme

Launched in 2019, the National Childcare Scheme represents the first statutory entitlement to financial support for early learning and childcare in the country. It replaced earlier support systems that were based on medical card and social protection entitlements. The scheme was designed to offer progressive support, providing higher financial assistance to families with lower incomes.

Participation in the scheme has grown significantly since its inception. The number of children covered rose from just 5,149 in its first year to 218,401 children by 2024. A study conducted after the initial year indicated that nearly two in five families, specifically 38%, had half or more of their childcare costs covered by the scheme. Moreover, over half of the families, approximately 56%, reported that the scheme allowed them to allocate more funds to other expenses.

Ongoing Criticism and Future Plans

Despite these positive findings, the Government faced criticism following the recent budget announcement, which did not reflect progress towards the promised €200 monthly childcare cost. Children’s Minister Norma Foley acknowledged the concern but did not provide a specific timeline, indicating that changes would occur “over the lifetime of Government.”

The tender documents from the Department of Children outline the need for the research to evaluate both the direct and indirect aims of the National Childcare Scheme. Direct aims include reducing the net cost of childcare for parents, ensuring that lower-income families receive the most substantial subsidies, and achieving comprehensive national coverage. Indirect aims focus on objectives such as long-term reductions in child poverty and enabling more young families to enter or re-enter the workforce.

This research is crucial for understanding the effectiveness of the National Childcare Scheme and will inform future policy decisions aimed at improving childcare accessibility and affordability for families across the country.