"Small Services Are Not Being Greedy": Call For More Creches To Be Able To Increase Their Fees

Elaine Dunne said parents often don’t understand the financial realities facing providers.

Creches stuck in historical fee freezes should be allowed a fee increase.

That's according to Elaine Dunne, chairperson of the Federation of Early Childhood Providers.

She said some childcare services taking part in the Government's Core Funding scheme may be forced out of business "due to this historical issue".

She said the Department of Integration  "are very aware of this and seem to be refusing some who have put in for a fee increase".

"There seems to be no fairness in the way this is being rolled out. We have no idea what mechanisms are being used and we can make no sense of it at all.  It is time for parents and providers to get answers as to how this is all being rolled out. Unity on this is needed now.," she said.

Her comments follow reports that  1,153 of 4,381 providers taking part in the Government's Core Funding scheme this year applied for a fee increase.

660 providers were approved.

A spokesperson for the Department of Children said it is still working through applications and appeals.

They said that as a result "it is not possible to give the final names of services who have been approved for an increase. In the interest of transparency a list of successful applicants will be published when the process has concluded."

They said since the Fee Increase Assessment (FIA) process commenced on 1 August 2024 , 1242 Partner Services submitted a self-declaration form which is the first step of the process. Of those there were 1,153 services deemed eligible to submit an application for a fee increase.

The process closed for applications on the 29 November and "in the interest of fairness, providers are also given the right to a review or appeal," the spokesperson said.

Dunne said many providers are operating at a loss due to historical fee freezes and rejected requests for fee increases, leaving them unable to cover rising costs.

She cited examples of providers surviving on as little as €500 in the bank, with weekly incomes of just €320.

"We’re stuck in fee freezes dating back to 2016," said Dunne. "While some large chains are receiving approvals, small services are being left behind. There’s no transparency on how the Department of Children is making decisions about fee increases, and we’re not being given answers."

She said the financial strain is already taking its toll. Dunne highlighted the closure of four childcare services in the first week of January and warned that more closures are imminent unless immediate action is taken.

"Childcare needs to be a viable business, but right now, many of us are running week to week, accumulating debt. Some providers even face deficits of €2,000 a month. If this isn’t addressed, we’re going to see mass closures."

Dunne criticised the Department of Children for what she described as a lack of fairness in funding decisions.

The situation has also created tensions with parents, who Dunne said often don’t understand the financial realities facing providers. "We know funding is a massive issue, but parents, providers, and staff need to come together to push for sustainable solutions. Small services are not being greedy - we need to be profitable to survive."

Social Democrats Cllr Chris Pender said some local families who raised questions about fee increases or requested clarity on notice periods have faced "abrupt termination of their childcare contracts, sometimes with as little as two weeks’ notice".

He said that treatment is "unacceptable, especially when it leaves parents scrambling for alternative arrangements while uncertain about the return of their deposits".