Norma Foley: Progress and Plan for Early Learning & Childcare

I welcome the opportunity to speak in this motion and to contribute to what is an essential and indeed timely debate on early learning and childcare. I'd like to acknowledge at the outset the importance of this issue, not just as a policy matter, but as one that directly affects children and families, educators and practitioners, providers and our wider society and economy. For the information of the House, I am tabling an amendment to this motion and I do so not to dismiss the concerns sincerely raised, but to ensure that this House has a full, balanced and evidence-based understanding of where early learning and childcare stands today and the direction in which we are moving. While we have seen real and measurable progress in recent years, with significant increases in state investment, reductions in out-of-pocket costs for parents, growth in capacity across the sector and improvements in workforce pay, this Government fully acknowledges the challenges that remain in early learning and childcare, particularly in terms of costs and availability of places for many families. However, I would emphasise at the outset that this debate should not be framed solely in terms of affordability and accessibility. Quality must also stand as a central and interconnected pillar of early learning and childcare policy. That is why this Government's approach is not just to reduce costs or expand, but to build a system that delivers high-quality experiences for every child, supported by a skilled and valued workforce. There are real issues and they are not being dismissed by this Government. They are recognised and they are being addressed in a structured, multi-annual and evidence-based reform programme through Shaping the Future, the Early Years Action Plan. Phase 1 of this plan, as you are aware, was published in December 2025. It sets out concrete actions already being delivered in 2026 across affordability, access and quality. Phase 2, to be published by the end of 2026, will build on this with further medium-term reforms. It will set out a clear pathway to achieving the Programme for Government commitment of reducing parental fees to €200 per month over the lifetime of this Government, as is committed and reflected in the Programme for Government. It will be grounded in evidence, stakeholder engagement and consultation. More than 11,000 submissions have been received through the consultation process, supported by 56 local consultation events right across the country. That is not the absence of a plan. This is a Government that is developing policy in partnership with children and families, educators and practitioners and providers to ensure it delivers real and sustained change. We must move forward, but we must do so in a way that is durable and supports the entire system. On the issue of affordability, the motion asserts that costs remain too high and for many families that is true. However, the motion fails to acknowledge the scale of progress already made. OECD data shows that between 2022 and 2025, childcare costs for couples and the average wage fell from 23% to 12% of household income, while childcare costs for lone parents and the average wage fell from 23% to 13% of household income. CSO data shows that since September 2022, the consumer price index for childcare has fallen by 37%. That is a remarkable and unprecedented reduction in a context of high inflation, which was achieved through the combined impact of consistent and sustained subsidy increases in the National Childcare Scheme and fee management measures under core funding. That is putting real money back into the pockets of families. We are not waiting for some time in the future to deliver affordability. We have already started the process of delivering it. Budget 2026 builds on this progress by increasing investment to over €1.5 billion, the highest ever level of state support, expanding subsidies under the National Childcare Scheme to benefit hundreds of thousands of children and introducing further fee caps to reduce the highest costs faced by parents. Under these new fee caps, the maximum cost of a full-time place is falling further, with additional support for families on low income available through increases in income-related subsidies under the National Childcare Scheme. However, I do know we have much more to do to make our programme for government commitment of reducing parental fees to €200 per month over the lifetime of government a reality. Let me address also important issues on workforce. The motion raises concerns about pay and rightly highlights the importance of the workforce. This government agrees there is no early learning and childcare sector without educators and practitioners. That is why we are continuing to support the Joint Labour Committee process, the formal and independent mechanism for setting pay levels. Although the state is not the employer, through Budget 2026 up to €45 million in additional ring-fenced core funding has been provided to support further pay improvements, contingent on new employment regulation orders. This has been an effective approach. Negotiations by the independent Joint Labour Committee are now underway to determine the pay rates for what will be the fourth set of employment regulation orders since 2022. Over the last three sets of employment regulation orders, wages in the sector have increased by 25%. Government has supported employers in meeting the cost of these wage costs, again notwithstanding the fact that employers are private operators and the state is not an employer in this sector. At the same time, as articulated in Phase 1 of Shaping the Future, we are examining the Phase 2 of Shaping the Future, where alternative mechanisms may better support long-term improvements in pay and conditions. This reflects a government that is both acting now and planning ahead. The motion calls for a review of core funding, a review of the scheme that is already underway. Since its introduction, we have ensured core funding has involved continuous monitoring, adjustment and refinement. A formal evaluation of its first year is currently being conducted, alongside the development of a robust long-term evaluation framework. This ensures that the scheme remains effective, it evolves based on evidence and feedback, and it delivers value for money. The motion, relying on waiting-list data, suggests that capacity is simply not there. Despite the clear challenges with these data that I have articulated in this House time and again, there is no centralised waiting list. Each waiting list is managed at service level, and an individual child may well be on multiple waiting lists in different services. In fact, they may remain on one or multiple service lists after taking up a place. Other data tells a very different story. We are seeing strong and sustained growth in capacity across the sector, including a significant increase in registered services year on year, including a net increase of 61 more registered centre-based services this year to date, January to May 2026. I continue to decline in closures, a 25% increase in child enrolments between 2022 and 2025, and a 23% increase in staff over the same period. This is clear evidence that capacity is growing. Alongside this, the Government is investing significant capital funding to increase supply. The Building Blocks Extension Grant scheme is being operated by the Department, which will deliver up to 1,500 places this year. A further Building Blocks Extension Scheme will operate in 2027. The motion calls for Government to purchase existing buildings from existing providers. The Government has taken a clear position here. Our priority is increasing capacity. The Department is not offering funding to providers to purchase existing premises, which would not increase existing capacity. Instead, the Department announced recently £135 million of capital investment over the coming five years for state-led services to provide additional high-quality, accessible early learning and childcare. The process has commenced with investment in building in what will be a groundbreaking initiative. Concerns have been raised about the childminding review. Let me assure the House that childminders have been consulted at every stage of the development and implementation of the National Action Plan for Childminding and in the drafting of the childminding regulations. An independent expert reviewer confirmed that the approach is proportionate and appropriate to the home-based setting. Furthermore, a new review of the initial implementation of the childminding regulations has now been launched and involves calls for submissions, surveys, stakeholder engagement and detailed analysis of barriers to registration. This demonstrates our willingness to listen, to learn and to adapt policy where necessary. The motion also calls for expanded family leave in the first year of a child's life through the Government's first five strategies. Significant progress has already been made. Parents now have access up to 46 weeks of paid leave in a two-parent household alongside unpaid leave entitlements. This reflects a strong commitment to supporting families in the earliest stages of a child's life. Further extensions will be considered in line with Programme for Government commitments. To conclude, what is being delivered by this Government is not a series of isolated measures but a coherent reform programme, one that balances urgency with sustainability and ambition with delivery. The Government amendment put forward reflects that reality. It acknowledges the challenges but it also recognises the progress, the direction and the pathway that has been laid out. That is the basis on which we should proceed.