Childcare facilities face going 'insolvent' due to lack of Government support
Of Childcare €33 Picture Beyond A File Prices Funding Currently, Cannot Per 30 Strict Providers Existing Core Limit Who Week Accept Increase
Creches face going "insolvent" if the Government fails to provide sufficient funding to providers, it has been warned.
Federation of Early Childhood Providers (FECP) chairwoman Elaine Dunne said many more creches and playschools would depart from the core funding model if changes are not made.
Currently, childcare providers who accept core funding cannot increase existing prices beyond a strict limit of €33.30 per week. They have argued they cannot continue to operate without additional funds.
“If the Department of Children or Minister [Roderic] O’Gorman want to take on our businesses, then buy us out. Happy days, we’ll walk away and let them take it on,” Ms Dunne said.
“But at the moment they’re putting many of us in the position where we’re becoming insolvent."
"When your business becomes insolvent because you signed up to a Government scheme, why would you continue to sign up to it?"
She said that the existing funding model for childcare providers is flawed, and that the requirement for capital changes depending on where in the country a business is based.
“Sufficient funding to meet these needs must come from the Department of Children through an efficient and effective funding stream otherwise, we providers will be left with no choice but to pass the cost onto parents,” Ms Dunne said.
Rowena Fisher, who operates Phyll’s Preschool in rural Cork, said that she has had to take up a second job in order to keep her creche open.
“There’s just not enough money there, there’s not enough money coming in. I mean, I ended up having to take a second job trying to keep the business open, because I feel so committed to the families that use my service,” Ms Fisher said.
“When parents ring up and they’re putting their name down for a good few years ahead, I actually feel sick with worry. Will I be open? It’s just getting so hard to keep the doors open.”