Garret Ahearn (Fine Gael) | Oireachtas source

Thank you, a Leas-Chathaoirligh. I did not get the opportunity last week to congratulate the Deputy Leader on his elevation. I wish him well in his new role. I am not sure how long it will last or how long we will be here but I know he will conduct himself in a very fair way for everyone in the House.

Many people in Clonmel woke up this morning to news of rising costs in childcare services from one provider in the town. Clonmel Childcare has made the difficult decision to leave core funding and increase fees because it cannot manage with the rising costs of energy, staff and so on. No childcare provider in core funding for the past six years has been able to raise its fees. I am not asking to allow them to raise their fees because Government policy in recent years has been to reduce fees for childcare providers. We have done it in previous budgets. In budget 2023, we reduced fees by 25%; in budget 2024, we reduced them by another 25%. Most parents of children who go to childcare providers will see in September a reduction in weekly costs of about €40 because the national childcare scheme, which is paid by the hour, will increase from €1.40 to €2.14.

The problem is Clonmel Childcare, now moving out of core funding, is increasing its fees by more than that €40 so instead of parents getting a reduction of €40 per week in fees - and that is just for one child - those whose child goes to Clonmel Childcare will see an increase in fees. As a result of this decision, the change for a parent will be over €50 per week per child. That is over €2,000 per year. Many families have two or three children going to childcare providers. This is an enormous increase in costs for those parents.

Numerous people came into my office this morning in Tipperary fearful of how they will pay this. They cannot get alternative childcare providers because we are low on them. Something needs to be done. There is something wrong within the system. I call for the Minister to come in and outline what can be done to support childcare providers to manage their increased costs without putting a penalty on parents. Parents across the country have been expecting costs to reduce in September; instead, more than 100 parents in Clonmel woke up this morning to find out they will increase.