Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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6. To ask the Minister for Children, Disability and Equality her plans to reduce the cost of childcare; the steps being taken to prevent the closure of early years and crèche services; if there is a timeframe in place to cap childcare costs as per the programme for Government commitment; and if she will make a statement on the matter. [50181/25]

Norma Foley (Kerry, Fianna Fail)
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I thank the Deputy. He will be aware that the maximum fee caps were extended to all partner services in core funding this month. The introduction of fee caps is an important step towards the reduction of parental fees to €200 per month over the lifetime of this Government. While the fee caps were introduced for new services last year, they now cover all services that are in core funding. In addition, the fee caps are set at a lower level than before. The maximum fee for a full-day place of between 40 and 50 hours per week, which is the most common full-day care service, is €295 per week before State subsidies under the national childcare scheme and the ECCE programme are deducted. For those on the minimum level of subsidy, this will bring their out-of-pocket costs down to less than €200 per week with those on income-assessed subsidies paying less again. While this is an important development for those paying the highest fees, with a median fee of €200 per week nationally, or just €100 after the minimum subsidies are deducted, the reality is many families pay less than this figure.

This latest measure builds on a range of supports already in place. The ECCE programme provides two years of preschool without charge and has participation rates of 96% to 97%. More than 70% of families say that if it were not a free service, they would never have been able to access it. The national childcare scheme complements the ECCE programme, giving universal and targeted subsidies to reduce costs for parents. Recent improvements include the extension of the universal subsidy to children under 15 and two increases to the minimum hourly subsidy, now worth €96.30 per week for 45 hours. Almost 220,000 children benefited from a subsidy in 2024. Since last September, children in childminding settings can also benefit from these subsidies. The fee management system introduced through core funding has made sure the investment in affordability is not absorbed by unnecessary fee increases. Core funding has enjoyed high participation rates to date. Currently, the rate of uptake for the upcoming year is 90%.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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I acknowledge the massive investment made in recent years. Since the introduction of core funding in 2022, something in the region of €259 million has been allocated. In many constituencies, particularly in suburban areas like mine, we still face a severe lack of childcare places. One of the largest childcare providers in the country closed its doors to the scheme a couple of months ago in Carrigtwohill, east Cork, namely Mary Geary's Childcare. That facility has 450 children. When somebody like that turns their back on the scheme, it is not that they wanted to; it is that the offering they give to parents far exceeds the minimum standards required. You might say that is a decision they make, but they have set those high standards. Will the Minister talk about caps for large-scale providers like Mary Geary's Childcare? There is a cap in the region of €700,000 or €750,000 that prevents them from-----

Norma Foley (Kerry, Fianna Fail)
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We are already at 90% of providers having joined core funding, which is 5% ahead of where we were at this time last year. The opportunity to engage in core funding remains open and services can sign up to the fourth year of the scheme at any point in the year. It is significant to be able to say that at this stage of the year we have reached 90%. We are in an Estimates period and will in the next couple of weeks have the budget. I am committed to seeking to do even more to provide resources, notwithstanding, as the Deputy said, the significant resources provided for in terms of core funding.

The Deputy referred to services closing. Every year some services will close while new services will open. That is the reality of it but 2024 saw a net increase of 226 services.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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I think we both got stuck for time when we were trying to address the question. I specifically asked about the Mary Geary set-up in Carrigtwohill. I ask about it because it is the largest provider in Munster, if not the country. We are concerned because there are no alternatives for people who choose to go elsewhere. I asked the Taoiseach about it last week but have still not received a response. We are particularly concerned because there are about 300 families with 450 children affected and they are faced with the prospect of a 34% hike in fees because the provider has decided to go outside of the core scheme. It is perfectly entitled to make that decision but there are very few alternatives for people. They feel tied to the service and that is a massive increase for any household to take on. I ask for clarity on the threshold. I think there is a threshold of some €700,000 or €750,000 that they are not allowed to exceed. In cases of a massive provider like this, is there any way those thresholds can be looked at?

Norma Foley (Kerry, Fianna Fail)
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There is, as the Deputy conceded, unprecedented Government funding going into the sector. If a provider steps out at any point, that provider can return. The Department has a sustainability fund. If a provider is of the view it is not viable to continue or is having particular sustainability issues, it can in the first instance engage with the city and county childcare committees and it can engage with the Department on the sustainability fund. The purpose is to ensure there is a free line of communication between all concerned and that these services are sustainable.

On areas of significant demand, which I have already discussed with other Deputies, we are looking at areas across the country via the forward planning unit we have. Where private providers are not in a position to provide, Government will seek to step in through State-led facilities.