What to do About Childcare?
Introduction
The high cost of childcare is a significant barrier for many families, often forcing parents, particularly mothers, to make difficult choices about their careers. In many countries, the cost of childcare rivals or exceeds the cost of housing, leaving families with little financial flexibility.
In Ireland, childcare costs are among the highest in the EU. The financial strain discourages many parents from returning to work, contributing to lower workforce participation rates and exacerbating gender inequalities. High childcare costs also have broader economic implications. When parents, particularly women, leave the workforce due to unaffordable childcare, economies lose valuable talent and productivity. Furthermore, the reduced spending power of families affects overall economic growth.
Addressing the childcare-work dilemma requires a multifaceted approach that combines increased public investment, progressive workplace policies, and cultural change. Increased public investment is critical: governments should allocate more resources to childcare, focusing on making it affordable and accessible for all families. In many EU countries, systems are in place to subsidise childcare costs for families, particularly low-income households. For example, Germany offers substantial subsidies, ensuring that parents pay fees based on their income, while France provides universal preschool (école maternelle) starting at age three, significantly reducing the financial burden on families. These models highlight how targeted policies can help alleviate the strain on working parents.
The effect of home working
The rise of remote and hybrid working models has introduced new dynamics into the childcare-work equation. While home working offers greater flexibility for parents, it also blurs the boundaries between professional and personal life, creating unique challenges.
On the positive side, remote working allows parents to manage their time more effectively, reducing the need for formal childcare and enabling greater involvement in their children’s lives. For example, a parent working from home can take a short break to pick up a child from school or attend a school event, activities that might be impossible in a traditional office setting. A number of Irish businesses have adopted a hybrid model (or continued it since the pandemic), with three-quarters of companies surveyed in a recent Dublin chamber survey saying they offered staff remote working options, with seven in 10 providing flexible working arrangements, 46% allowing flexible scheduling for all workdays, and 38% allowing employees to log off and log back on as childcare needs arise [2].
However, home working is not a quick-fix solution. Many parents struggle to balance professional responsibilities with caregiving duties, particularly when young children are at home. This dual burden can lead to decreased productivity, increased stress, and, in some cases, career penalties. Women, again, often bear the brunt of these challenges, as societal norms frequently position them as the primary caregivers. Meanwhile, the same Dublin chamber survey found that while 36% of businesses offer part-time roles or reduced hours to parents, just 11% offer the facility to job-share and only 1% said they had on-site childcare facilities or partnerships with local childcare providers in place [3]. In other words, the barrier to entry for child caregivers is still prohibitively high.
The sustainability of remote work as a solution to childcare challenges depends on organisational support. Unsurprisingly, employers that offer flexible schedules, clear boundaries around work hours, and an understanding of employees’ caregiving responsibilities are better positioned to support working parents.
Ireland
Ireland’s childcare system faces numerous challenges, making it difficult for families to balance work and caregiving responsibilities. High costs, limited availability, and workforce shortages are among the most pressing issues. Almost nine in 10 Irish businesses reported that the childcare crisis affected their ability to attract and retain staff, with a fifth of all companies describing it as the primary barrier to doing so. [4]
One of the key problems is the chronic underfunding of the childcare sector. Despite recent increases in government investment, Ireland’s public spending on early childhood education and care remains notably low. This underinvestment has resulted in high fees for parents and low wages for childcare workers, creating a vicious cycle of high costs and low quality.
“Looking at childcare costs as a share of average wages, Ireland ranks the second highest in the OECD [Organisation for Economic Co-operation and Development] and worst in Europe,” said Dublin Chamber public affairs executive Mia Finnegan. “The cost of childcare in Dublin is even higher than the national average. It is about 10 per cent higher than Cork, and 50 per cent higher than Limerick.” [5]
The gender gap
The lack of affordable childcare has significant implications for gender equality in Ireland and all over the globe. Many mothers are forced to reduce their working hours or leave the workforce entirely. In the US, 45% of mothers with children aged five and under who left the workforce during the COVID-19 pandemic cited childcare as a major reason for their departure, compared with just 14% of fathers who said the same. Additionally, 24% of the mothers with children aged five and under said they had considered reducing their hours or moving to a part-time schedule, compared with just 18% of the fathers. [6]
Efforts to address these issues have included measures such as the National Childcare Scheme in Ireland, which provides subsidies to families based on income. However, critics argue that these subsidies do not go far enough to address the underlying issues of affordability and accessibility. Until governments take decisive action to alleviate the pressure of childcare on women, any talk of their hopes for gender equality can be written off as empty rhetoric.
The creche problem
A considerable part of the problem lies in the fact that caregivers are so poorly rewarded for their work that the number of willing workers is lessening year on year. Most childcare workers struggle to cope with unexpected expenses, such as replacing a washing machine, highlighting the sector’s low pay and financial instability. Siptu has warned that creches are at serious risk of closure as poor wages drive professionals out of the sector, with the 2024 Siptu Early Years Professionals Survey revealing that 30% of managers believe recruitment and retention challenges will lead to service closures, a 6% increase since 2022. Additionally, 42% of managers reported threats of room closures, up 9% from two years prior. [7]
Workers describe the profession as deeply undervalued, with one Galway educator stating that they feel treated like “babysitters” rather than essential contributors to society. Despite the intrinsic rewards of working with children, 86% of workers cite low pay as their primary issue, followed by staff shortages, stress, and burnout, with 95% struggling to make ends meet. “The staffing crisis is continuing unabated and it is undermining quality for children and services for parents as qualified educators struggle to make ends meet,” says Siptu Head of Organising, Darragh O’Connor. [8]
The European context
Ireland’s childcare challenges are not unique; they reflect broader trends across Europe. While the EU has made childcare a policy priority, significant disparities persist between member states.
Northern European countries like Sweden, Denmark, and Finland lead the way in providing affordable, high-quality childcare. These nations have heavily subsidised systems, with fees capped as a percentage of household income. As a result, they boast some of the highest female workforce participation rates in the world.
In contrast, countries in Southern and Eastern Europe face greater challenges. Limited public investment, cultural norms around parenting, and economic constraints have resulted in lower availability and higher costs of childcare. For example, according to the OECD, in 2023, only 17.4% of Bulgarian children under the age of 3 attended formal childcare, compared to the EU average of 37.4% [9]. In contrast, Denmark has more than doubled the EU target, providing childcare to 70% of toddlers. [10]
The EU has sought to address these disparities through initiatives like the European Pillar of Social Rights, which includes commitments to affordable and accessible childcare. However, implementation varies widely, and the pandemic has strained national budgets, making further progress challenging.
Moving forward
Addressing the childcare-work dilemma requires a multifaceted approach that prioritises increased public investment, progressive workplace policies, and cultural change. Governments must allocate more resources to childcare, focusing on making it both affordable and accessible for all families. Policies such as capping fees as a percentage of household income could provide immediate relief to parents grappling with high costs. At the same time, supporting the childcare workforce is essential. Improving wages and working conditions for childcare professionals would ensure high-quality care and help address persistent staff shortages.
Promoting gender equality is another critical component, with measures such as shared parental leave and incentives for fathers to take on caregiving roles helping to rebalance childcare responsibilities within families. Employers also have a role to play by adopting flexible working arrangements that accommodate the needs of working parents, while ensuring clear boundaries to prevent burnout. On a broader level, the EU should actively set benchmarks for childcare affordability and quality, holding all member states accountable to minimum standards. This coordinated effort would help create a more equitable and sustainable system across Europe.
In Ireland, all the main political parties made pledges on childcare in advance of the general election. Fianna Fáil and Fine Gael were among the five parties to promise that they would cap childcare costs at €200 per month per child [11]. However, with the forming of government having taken place so recently, as of right now it is unclear when this might happen.
What to do about childcare?
The intersection of childcare and work is a complex and deeply consequential issue that affects families, economies, and societies as a whole. While progress has been made, significant challenges remain, particularly in Ireland and across Europe. Addressing these challenges requires bold policy action, societal change, and a commitment to equity and inclusion. By prioritising affordable, accessible, and high-quality childcare, we can create a future where all parents, regardless of gender, can thrive both at home and in the workplace.
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Sources
[1] https://economy-finance.ec.europa.eu/system/files/2023-06/ip231_en.pdf
[10] https://ec.europa.eu/newsroom/just/items/625317/en?utm_source=chatgpt.com
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