Holly Cairns (Cork South West, Social Democrats)
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13. To ask the Minister for Children, Equality, Disability, Integration and Youth the steps that he is taking to address high childcare costs. [28408/22]

Roderic O'Gorman (Dublin West, Green Party)
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I want to develop a world class childcare system. One that is affordable for parents, provides quality care and education to children, and pays staff well. 

We all recognise that childcare fees should not be a burden. We want every parent to be able to access childcare without worrying about what it will cost. That's why I am moving forward with far-ranging reforms in the Early Years sector, informed by the recommendations of the Expert Group to develop a new funding model that will see much greater State management of the sector, whilst delivering cost reductions for parents. 

Core Funding marks a new departure in State funding of the sector in order to deliver early learning and childcare for the public good, for quality and affordability for children, parents and families, and sustainability and a stable income for services. 

Core Funding is equivalent to €221 million in a full year. It will require a commitment not to increase fees from September 2021 rates. This will ensure that parents feel the full affordability benefits of the National Childcare Scheme (NCS) and the Early Childhood Care and Education (ECCE) programme.  This is particularly important because from September 2022, universal NCS subsidies will be extended to children of all ages up to 15. 

A Transition Fund is now available to providers between May until August ahead of the introduction of Core Funding. The Transition Fund invests in services, subject to their agreement not to increase parents' fees from September 2021 levels.

I am pleased that, so far, 92% of services have signed up for the Transition Fund and the associated fee control.

I hope to see a similarly high take up rate for Core Funding, to allow the maximum number of parents to benefit from continued fee control and existing and new investment in the NCS and ECCE Programme. 

As mentioned, the reforms I am implementing will for the first time provide Government with the means to meaningfully reduce the cost of early learning and childcare for parents. With these reforms in place, preparations are now underway in my Department to seek significant investment into the National Childcare Scheme in the context of the forthcoming budget that will lead to a substantial reduction in fees for parents without adversely affecting the sustainability and availability of services.