Dublin Childcare Fee Rise: Funding Model Collapse
Early Years Sector Faces Crisis as “Once Upon a Time” Withdraws from Core funding Scheme
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dublin, Ireland – A significant crisis is unfolding in IrelandS early years sector as the prominent childcare provider “Once upon a Time” has announced it’s withdrawal from the government’s Core Funding scheme for several of its services. This move,attributed too the scheme’s conditions,has sparked widespread concern among providers,with fears that it could lead to further withdrawals and a destabilisation of the sector.
“No Choice But to Withdraw”
The decision by “Once Upon a Time” to pull out of the Core Funding scheme for its Shankill and Ballymount services, and potentially Dundrum, has sent shockwaves through the industry. Ms. Dunne, a representative for stakeholders in the sector, expressed grave concerns about the sustainability of the scheme for providers.
“Its not just Dublin that this is going to hit,” Ms. Dunne stated. ”We’re seeing a lot of people saying that they’re going to be left with no choice [but to withdraw]… If you can’t pay your bills, if you can’t support your staff wage increase, if you can’t do any of that, you’re left with no choice at this point but to pull out of core funding.”
She emphasised the urgent need for changes to the current model, highlighting that stakeholders are actively engaging with Minister for Children Norma Foley and her department. “Somebody in government needs to listen.there needs to be real consultation,” Ms. Dunne urged.
Department’s Stance on Core Funding Conditions
The Department of Children, Equality, Disability, Integration and Youth acknowledged the “regrettable situation” involving “Once Upon a Time’s” withdrawal. In a statement, a spokesperson outlined the objectives of the Core Funding scheme, which include reducing costs for parents, improving staff wages, enhancing service quality, and safeguarding taxpayer investment.
Key conditions of the Core Funding scheme, as detailed by the department, include:
fee Freeze: Centres must agree to a freeze on childcare fees.
Fee Caps: Introduction of fee caps from September 1st onwards.
New Pay Rates: Implementation of new pay rates for staff.
Transparency: A requirement for significant operational and financial transparency to ensure public money is used for its intended purpose and not for increased private profit.
Funding Increases Amidst Withdrawal
The Department’s statement also highlighted the financial support provided to “Once Upon a Time” through the Core Funding scheme. The company currently receives core funding for 10 services.the funding allocated to “Once upon a Time” has seen a significant increase:
2022/2023: €1,650,958
2023/2024: €2,388,958
* 2024/2025: €2,566,963
Furthermore, the department noted that the projected core funding for the company was set to rise to €3,293,893 from September. This planned increase included specific funding ring-fenced for pay. However, this figure is expected to be revised due to the withdrawal of some of its centres from the scheme.
As of Wednesday, Pobal, the body overseeing the scheme, had received formal requests to cancel the core funding contracts for the “Once Upon a Time” services in Shankill and Ballymount. Parents in Dundrum have also reportedly been informed of the decision to withdraw that service from the scheme. The unfolding situation raises critical questions about the viability of the core Funding model and its impact on the accessibility and quality of early years education and care across Ireland.