Government Allocates €190,000 for Childcare Affordability Research

The Government has announced plans to invest up to €190,000 in research aimed at evaluating the effectiveness of the National Childcare Scheme in enhancing the affordability and accessibility of childcare services. The study will also assess whether the scheme has positively influenced women’s participation in the workforce. The Department of Children has issued a tender for this project, which is set to commence in January 2024, with a comprehensive report expected by March 2027.

Assessment of Childcare Costs and Workforce Participation

This research aligns with the government’s commitment to progressively lower childcare costs to €200 per month per child. In its announcement, the department emphasized the need for a detailed action plan to establish an affordable, high-quality, and accessible early learning and childcare system. The National Childcare Scheme, first introduced in 2019, marked a significant shift in childcare policy, serving as the first statutory entitlement to financial support for early learning and childcare. It replaced earlier schemes linked to medical card and social protection benefits.

Initial uptake of the scheme was modest, with only 5,149 children benefiting in its first year. However, participation surged to 218,401 children by 2024, indicating a growing reliance on the scheme. Early research suggested that nearly 38% of families received half or more of their childcare costs covered by the programme, while over 56% reported having more disposable income as a result.

Government’s Budget Criticism and Future Plans

Despite these positive indicators, the Government faced criticism following the recent budget announcement, which failed to move towards the promised €200 monthly childcare cost. Norma Foley, the Children’s Minister, did not provide a specific timeline for achieving this goal but assured that it would occur “over the lifetime of Government.”

The tender documents outline that the upcoming research will evaluate whether the National Childcare Scheme is meeting its stated direct and indirect objectives. Direct aims include reducing net childcare costs for parents, ensuring that lower-income families receive the most substantial subsidies, and achieving comprehensive national coverage. Indirect objectives pertain to long-term goals such as reducing child poverty and enabling families with young children to enter or re-enter the workforce.

As the Government embarks on this significant research initiative, its outcomes may play a crucial role in shaping the future of childcare policy and support for families across the nation.