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  3. Unions welcome government putting the brakes on bumper profits from childcare

Unions welcome government putting the brakes on bumper profits from childcare

June 05, 2025
Children crafting
Responding to confirmation that the fee cap for publicly funded childcare services is to be lowered and extended in September, the Irish Congress of Trade Unions general secretary Owen Reidy said:


“Ireland is almost unique in Europe in not capping the childcare fees private providers in receipt of hundreds of millions in subsidies can charge parents. Today’s announcement puts an end to that and the more extortionate fees being charged by some childcare businesses, particularly but not exclusively in our cities and commuter belts.


“While ironing out the large disparities in childcare fees charged across the country is a welcomed goal, it is no silver bullet. Not all parents will feel a difference in their pocket in September and even for those who will benefit, fees will remain too high for most working families. Priority must be given in the budget to funding the programme for government commitment to cap out-of-pocket childcare costs at €200 per month per child.”


Social policy officer, Dr Laura Bambrick added:


“There are now more children using childcare, more service providers in Core Funding and more public investment than ever before.


“While the cost of childcare was a hot election topic, so too was the demand for public childcare.


“As Ireland moves to catch-up on years of underinvestment to transform childcare, the spotlight has shifted to who is providing childcare services. If public provision doesn’t fill the gap in demand then private equity investors, attracted by significant sums of taxpayer money with few constraints, will.”
 

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