Childcare providers across the country shut in protest at ‘unfair’ funding they say will lead to more closures in sector

Childcare providers closed their facilities across Ireland today and plan to do so again later this month in protest at what they say is an “unfair” core funding scheme and what they claim is Minister Roderic O’Gorman’s “disrespect” for providers.

Gathered outside Leinster House, a varied group of childcare providers, parents and children from across the country joined to protest Minister O’Gorman’s €221 million Core Funding model.

Almost 4,000 providers (90pc of the country’s total) have signed onto the Core Funding, which will, among other things, freezes tuition fees from September last year.

Today marked an escalation in a series of protests, in which members of the Federation of Early Childhood Providers (FECP) said 500 of its member ECCE childcare services countrywide would close and hold protests in Dublin, Cork, Galway, Mayo, Sligo and Clare.

A further mass closure is planned for November 25 if nothing comes of today’s protest.

“We've seen huge turnouts on all of the protests around the country. So, it is about time our minister sat down around the table and really negotiated a deal and not give us the run-around when we go in,” said Elaine Dunne, chairperson of FECP.

“We invited him to have a meeting with us today already. And we did not get a response back. So, we took it as a no. On radio this morning he asked us to call off to protest on the 25th. Unfortunately, unless there is something to negotiate at the table, we cannot call off the 25th.

“We're hitting a brick wall with the department and our minister.”

Treasa Keegan, director at Bambi’s preschool in Clondalkin, west Dublin, spoke of her disappointment.

“I have looked at the numbers and Minister O'Gorman is coming out here and spinning what he has done, as though he has given millions into the sector,” she said.

"What he refuses to admit, is that he withdrew two critical funding streams at the same time as launching core funding.

“The staff in the sector cannot get mortgages, the owners cannot survive or cannot retire. And even if they did want to sell their business, who would buy it? The State is deciding the funding, fixing it, and ignoring providers for the last four years.

“They are pushing out press release after press release. PR stunt after a PR stunt. This morning, radio interview after radio interview, to demoralise, ignore and disrespect this part of the sector, and it is absolutely not okay.”

“So, what do you do in that situation except shout for a little bit of attention, a little bit of open mindedness and really to stop those awful press releases coming out of the department because they are so disrespectful,” Ms Keegan said.

Affected parents were notified of the closure, with over 10,000 signing a petition and some even attending the protests themselves.

Ashley Fenlon was among the protesters today alongside her son Archie, who attends the Appletree Farm Montessori in Co Kilkenny.

“It is really unfair. I do not think the government is listening to the requirements that are needed, especially with the cost of living going up,” she said.

“I 100pc agree with the closures if it gets the result that they need, they definitely need the support - they do an amazing job. And we are lucky to have them, we would be lost without them. They definitely deserve everything they are asking for and more,” Ms Fenlon added.

The FECP has taken issue with funding and policies they say were not addressed in Budget 2023, as well the new Core Funding model for the sector, which they say has seen small childcare providers lose higher capitation and support payments.

A capitation increase of only 7pc in 12 years has left their ECCE services completely unviable, say the protesters, with providers having to account for increasing overheads driven by inflation and wage increases.

“Inflation is going up. Everything is going up and we are stagnant. We have only gone up €4.50 in 12 years on the ECCE scheme. I know there is a review coming for ECCE scheme next year. We do not need to review to tell us what is in our bank accounts.

“We were told to wait for the budget and now we are being told to wait till next year's budget. It is not good enough. We have 44 families, and we are struggling,” said Fiona Tracy Bowe, owner of Cherry Blossom Montessori in Castleknock, Dublin.

Ireland currently spends 0.3pc of the GDP on the childcare sector, a stark contrast to the UNICEF recommended 1pc.

This would translate to €4bn per annum, as opposed to the current €1bn.

FECP surveys warn that around 260 childcare services are expected to close in the coming year, due to State subsidies failing to account for rising energy costs, staffing overhead and other inflation-linked pressures.

“I have had my service since 1986, and I have nothing to show for it after all these years. Nothing,” said Bríd Corr, who founded Bambi’s preschool.

Minister for Children Roderic O'Gorman, who introduced the childcare funding model, said the protests are "unwarranted", and that the first year of this model is "a first step".

"I think it's really disappointing that the closures are going ahead today and I believe that these closures are unwarranted," he told RTÉ's Morning Ireland.

"Government, and myself as minister, we've prioritised investment in childcare and Budget 2023 will see for the first time ever over a billion euro being spent on childcare.

"With that money, we're looking to deliver for parents in terms of reduction in fees; we're looking to deliver for the childcare staff; we've secured a pay agreement that will see 73% of them get a pay increase; and in particular, we're looking to deliver for providers of full-day childcare and providers who are working in ECCE only.

"This year we're providing €259 million in core funding. It's a massive increase in core funding.

"That's just the first year of core funding and that is recognising that there has been some very significant under-investment in childcare over decades in Ireland.

"And for ECCE-only services, the services were probably focusing on today; last year, between the higher capitation programme support payments, they would have gotten total 14 million.

"This year through core funding, they'll be receiving €27 million, so a €13 million increase to the ECCE-only services."

The minister said that, in the second year of the funding model, there will be "€28 million more to support services".

"I would ask that they withdraw the threat of the second day of closures later on this month because I think that's unfair for parents, it's unfair for the children who are impacted."