Childcare sector 'in crisis' as insurance costs spiral

“If we come up against this again next year it's game over,” says a Virginia childcare provider having endured a 200% hike in insurance rates. Angela Deighan was commenting on the crisis hitting her field of expertise as a result of rising costs of insurance, utilities, rent, commercial rates and the expense of complying with ever changing regulation.

Teresa Thompson, the Big Start Co-ordinator in Cavan, says the sector needs more State support: “The challenges being encountered by the Early Years sector are shared by childcare providers around the country. Chronic underinvestment means the sums don’t add up for parents, or for many providers and their staff.”
At the start of last month one of the biggest insurers of the childcare sector, Ironshore Europe, announced it is pulling out of the Irish market. The global company had been acquired by new management, Hamilton Insurance, leading to the company's withdrawal.
Ms Deighan, a Montessori educator in Virginia, saw her premium rise from €1,000 per year to €4,000 for the coming year. The childcare provider gets a reduction of €1,000 due to her membership of the largest providers' representative body, Early Childhood Ireland (ECI).
She's wary of the sector's future: “Even with the ECI reduction it has jumped by 200%. Our parents have been fabulous, they have phoned TDs and anyone who will listen. This cost increase is the tip of the iceberg. We are a sector in crisis, there is going to be a grand exodus of childcare providers in June once they ride out this academic year,” Angela predicted.
“There is going to be a shortage of spaces in September 2020. It is going to be a very dismal September.” 
Angela feels that the plight of the Early Years sector outside of the capital is lost on government: “It's the same old story – if all the Dublin crèches started shouting then the government may start doing something. The insurance fiasco is something that they need to really get a handle on. The government really need to step up. Our sector is really affected by this.”
The Montessori teacher says she fears for the future: “The costs have to be passed on to someone, and it's going to be the parents. If we come up against this again next year it's game over.”
The matter was recently raised in the Dáil by Deputy Brendan Smith who highlighted the case of a Cavan childcare provider: “I just spoke to a childcare operator in my own constituency of Cavan-Monaghan. She eventually got her policy renewed this morning at a cost increase of 166%. She is operating on a small and tight profit margin already. She cannot afford to pass on additional costs to the parents, who are under financial pressure, as we all know. I appeal to the Taoiseach and the Minister for Children and Youth Affairs to ensure that adequate supports are given to the childcare sector to make sure that we do not lose any existing places,” Deputy Smith told the Oireachtas.