An increase in childcare subsidies under the National Childcare Scheme, which came into effect yesterday, marks a "milestone" in public investment in early years care and education, according to Early Childcare Ireland.
The minimum hourly subsidy under the NCS for all children under 15 will now be €1.40 - an increase of €0.90 per hour from last year. The changes will come into effect for families who have children aged over six months and up to 15, but children aged 15 do not qualify.
Parents who are using Tusla-registered early learning and childcare providers who are signed up to the National Childcare Scheme can benefit from the increased subsidy.
Minister For Children Roderic O'Gorman has said the increase will see the average cost of childcare being cut by 25%.
Speaking on RTÉ's Morning Ireland, he said that the subsidy will not be swallowed up by a fee increase, because last year, in exchange for "a very substantial additional investment," providers agreed to a fee freeze.
"Parents will actually see the benefit of this cut in terms of the bill they get for childcare this week or at the end of this month," he said.
The freeze on fees will last for one year up to the academic year ending in August, then providers will be asked to sign a new contract for the next year, he added.
Policy Director of Early Childhood Ireland Frances Byrne said that it is a "significant increase" in offsetting childcare costs.
Also speaking on RTÉ's Morning Ireland, she said that "today marks the beginning of a major milestone in public investment in early years care and education and school age care and indeed, including childminding, which will see Ireland reach just over €1 billion of investment five years ahead of time.
"So, that's a very positive development and moves Ireland closer to the longed-for Nordic model of provision."
Parents must apply for the scheme themselves, and can find out what they may be entitled to through the NCS portal, and that payment is then made to the childcare provider.
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Ms Byrne said that the system works quite smoothly and fees are reduced as a result of the subsidy.
While the system is not complicated for parents to apply for, Ms Byrne said that there is huge administrative work behind the scenes for providers.
It is an issue that Early Childhood Ireland has "raised repeatedly" and it has sought some flexibility around administration of the scheme, she said.
"Because the impact is that very highly qualified educators end up doing paperwork when they should be working and providing quality care and education to children.
"So, there are complexities with the administration of the scheme, but not for parents, it's very straightforward."
Not all childcare providers are signed up to the scheme, she explained.
"At the moment we have a situation in Ireland, which is changing, which means that the vast majority of childminders through no fault of their own are outside the system.
"They simply can't register with Tusla. They're not allowed, if they only have two or three children who they're not related to.
"That is changing. The Government is implementing a Childminding action plan which is coming in slowly enough and has been delayed by Covid, but we are starting to see some important developments. And it is really important, again in those Nordic countries we know that child minders are part of the system.
"They're valued professionals. They receive continuous professional development and so on.
"So, we need to see that in Ireland. But yes, there are 90,000 children we know already in the scheme. The vast majority of them will be in centre based settings. And the sooner we can bring childminders into the net the better.
"Not just so that parents a benefit but as Early Childhood Ireland has been saying for a long time this is part of ensuring the other side of the Nordic model, which is that we see universal access, high quality for children and excellent outcomes for children, children throughout their lives."
