Capping childcare fees could result in the closure of smaller services in Kerry due to increased financial pressures.
That’s according to Derek O’Leary from Scamps and Scholars childcare.
New core funding proposals for Early Childhood Care and Education are asking providers to cap fees at last years rate of inflation at 2.2%; inflation has reached 7% this year.
Mr O’Leary says childcare operators, who haven’t increased their fees since before the COVID-19 pandemic, aren’t in a secure financial position:
Mr O'Leary says he wants the option to increase fees if he needs to respond to rising inflation.
He says while he's getting funding from the scheme, he doesn't know how much he'll receive after 12 months.