Government Invests €190,000 to Evaluate Childcare Affordability

The Government of Ireland is set to allocate up to €190,000 for research aimed at assessing the impact of the National Childcare Scheme on childcare affordability and accessibility. The study will also evaluate whether the scheme has increased female workforce participation. The Department of Children has issued a tender for the project, which is scheduled to commence in January 2024 and conclude with a final report in March 2027.

Research Objectives and Background

This research aligns with the government’s ambition to “progressively reduce the cost of childcare to €200 per month per child.” The Department has indicated that a comprehensive action plan will be developed to create a high-quality and accessible early learning and childcare system. The National Childcare Scheme, launched in 2019, established the first statutory entitlement to financial support for early learning and childcare, replacing older schemes linked to medical and social protections.

Initially, only 5,149 children were covered under the scheme in its first year. By 2024, this number surged to 218,401. Research conducted after the scheme’s first year revealed that nearly two in five families, or 38%, had at least half of their childcare expenses subsidized. Furthermore, over half of the participating families (56%) reported having more disposable income due to the financial support.

Government Criticism and Future Plans

Despite these positive indicators, the government faced criticism following the recent budget announcement, which did not align with the promised €200 monthly cost for childcare. Norma Foley, the Minister for Children, did not provide a specific timeline for achieving this goal but indicated it would occur “over the lifetime of Government.”

The tender documents specify that the research must evaluate whether the National Childcare Scheme is fulfilling its direct and indirect objectives. Direct aims include reducing the net childcare costs for parents, ensuring lower-income families receive substantial subsidies, and achieving comprehensive national coverage. Indirect objectives encompass long-term reductions in child poverty and enabling more families with young children to enter or return to the workforce.

This comprehensive research effort aims to provide valuable insights into the effectiveness of the National Childcare Scheme, ultimately guiding future policy decisions to enhance childcare affordability and accessibility in Ireland.