New research from the FECP shows that smaller practices in particular will be unable to maintain their businesses in 2023.

According to a recent survey, over 260 childcare providers plan to close next year due to the rising cost of operating their businesses.

The Federation of Early Childhood Providers (FECP) surveyed more than 1,000 of its members in response to the announcement of the government’s proposed “core funding” subsidy.

The subsidy, announced by Minister for Children Roderick O’Gorman has been deemed insufficient by many childcare professionals.

The survey found 5.66% of providers said their service will not remain open next year.

For providers of early childhood care and education, the figure is even higher, with 7.5% planning to close.

In total, 264 businesses said that they would be unable to stay open in 2023.

Read More: Preschools May Be Forced To Close Under Government’s “Very Difficult” Proposed Funding Changes

Funding from the Government amounts to €221 million, and early years professionals say the way the funding will be given out will not be enough to keep smaller operators open, given soaring costs of operating such as increased prices for energy, insurance, food and wages.

Federation Federation of Early Childhood Providers chairwoman Elaine Dunne told The Irish Times that a service she runs for parents offering four hours of childcare a day, for 22 children, would receive €59.08 a week in total core funding support.

Ms Dunne said the survey carried out last week among 1,063 members of the federation, a majority of just under 60 per cent report being either unhappy, or very unhappy, with Core Funding.

77% of those surveyed claimed they would be unable to give staff a pay raise next year, despite rising costs of living requiring higher wages to cope with.

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Staff shortages are already an issue in early years settings, and many are having to leave the industry to search for a position with better pay.

Speaking to the Independent, Sonya Duggan, the owner of Little Stars Montessori and Kilminchy School House in Portlaoise, said she is “angry”.

“We’re just perceived as greedy for trying to run a business,” she said. “Everyone is shouting for nationalisation, but it’s as if they’re trying to squeeze us out and not allowing businesses to make profits.

“Why should I just make do? I put my heart and soul into my business. I’ve invested hundreds of thousands over 23 years and I love what I do. I want parents and kids to be happy. This job is a vocation, but it’s also a business.”