To ask the Minister of Education to detail any assessment his Department has made of the impact of rising operational costs, including rates, energy and staffing, on the sustainability of early learning and childcare providers.

The independent Review of Childcare Services in Northern Ireland (RSM, 2023) identified clear financial pressures across the sector, including workforce recruitment and retention challenges linked to relatively low pay, increased operating costs and declining profitability. A copy of the report can be found here:

RSM (2023) DE Review of Childcare Services in NI - Final Report.PDF

Subsequently, the Department of the Economy's Childcare Providers Targeted Business Support Market Research further examined business sustainability challenges. This report identified sustained pressures from energy, insurance and, in particular, staffing costs, including the April 2025 increases in the National Minimum Wage and Employers’ National Insurance contributions. However, the research also recognised that there is no single childcare business model in operation across the sector, with each provider operating under different cost and income structures. A copy of the report can be found here:

Childcare Providers Targeted Business Support Market Research

The draft Early Learning and Childcare Strategy aims to reduce childcare costs for parents by expanding the Northern Ireland Childcare Subsidy Scheme, while also enhancing the long‑term sustainability of providers. Proposals include the creation of a Childcare Business Advisory Service, offering tailored guidance to strengthen viability and to gain a better understanding of the financial needs of the sector, so that future supports can be tailored over time.

The Strategy also proposes a Strategic Childcare Accessibility Fund to improve access to early years services where demand outstrips supply, including disadvantaged communities, rural areas, and services for children with additional needs. In addition, a PSEP Strategic Support Fund will help address short‑term pressures in strategically important non‑statutory pre‑school settings.

Additional measures focus on workforce sustainability, including improved pay structures, commitments toward the Real Living Wage, clearer career pathways, and expanded professional development and training to address recruitment and retention challenges