Government Invests €190,000 to Evaluate Childcare Affordability

The Government of Ireland has announced plans to allocate up to €190,000 for a comprehensive study aimed at assessing the impact of the National Childcare Scheme on childcare affordability and accessibility. This initiative also seeks to evaluate whether the scheme has successfully increased female participation in the workforce. The Department of Children has issued a tender for the research, which is scheduled to commence in January and culminate in a final report by March 2027.

Research Goals and Context

This research aligns with the government’s objective to “progressively reduce the cost of childcare to €200 per month per child.” The department stated that a detailed action plan will be developed to establish an affordable, high-quality, and accessible early learning and childcare system. The National Childcare Scheme, which was first launched in 2019, represents a significant shift in the approach to financial support for early learning and childcare, replacing previous schemes rooted in medical card and social protection entitlements.

Since its introduction, the scheme has seen substantial growth. From covering just 5,149 children in its inaugural year, the number has surged to 218,401 children by 2024. Initial research conducted following the scheme’s first year revealed that nearly two in five families—approximately 38%—had at least half of their childcare costs subsidized. Furthermore, over half of the families surveyed, at 56%, reported having more disposable income as a result of the scheme.

Government Criticism and Future Plans

Despite these promising figures, the government faced criticism following the recent budget announcement, which did not advance towards the pledged €200 monthly childcare cost. Children’s Minister Norma Foley did not specify a timeline for when this goal would be achieved but indicated that progress would occur “over the lifetime of Government.”

The tender documents from the department outline the necessity for the research to evaluate whether the National Childcare Scheme is fulfilling its intended direct and indirect objectives. The direct aims include lowering the net cost of childcare for parents, ensuring that lower-income families receive the most substantial subsidies, and providing comprehensive national coverage. Indirect aims focus on longer-term goals, such as reducing child poverty and enabling more families with young children to enter or return to the workforce.

This evaluation is crucial for understanding the effectiveness of the National Childcare Scheme and its potential to transform childcare accessibility in Ireland. The findings will not only inform policymakers but also impact the families relying on this essential service for their children’s early development.