Childcare Centres forced to close down due to high insurance

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The government has been criticised for its ‘lack of action’ regarding business insurance premiums which are leading to the closure of many creches, play centres and childcare businesses closing.

Galway East TD Anne Rabbitte said the government cannot stand off this issue, claiming parents, children and businesses are at a disadvantage because of its ‘hands-off apporach’.

“We are all familiar with the staggering cost of childcare and the negative impacts this has, particularly on working mothers.

“Too many women are being frozen out of the workforce because they cannot afford childcare, but at the same time, staff in the childcare sector are leaving in their droves because the pay and conditions are so poor,” said Deputy Rabbitte.

The Galway TD, who will run in the European Elections, said she is aware of one creche owner who was recently quoted €250,000 for public liability and staff insurance.

The quote she received represents about an eighth of her annual turnover which does not cover her premises, which would require additional insurance cover.

“There is only one firm that is willing to offer insurance cover to creches and play centres, and they are based in the UK.  There are child care services across the western region closing as they simply cannot afford the rising insurance costs plaguing their industry,” added Deputy Rabbitte.