The extent to which the core funding agreement to cap childcare fees is not honoured by some providers has been a sore point for parents since its introduction in 2022. Under the agreement, childcare providers are obliged to cap fees at 2021 levels in return for State subsidies that will top €480 million next year.Parents have always been able to report cases of overcharging to their local authorities but there has been no systemic monitoring of compliance. That is set to change in the Autumn when the Department of Children will ask the local authorities to check fees. The move comes after reports in The Irish Times and elsewhere of overcharging by creches. That it has taken so long for the Department of Children to undertake such a basic piece of financial housekeeping is surprising and speaks to the historically informal nature of the sector. That is also changing. The number of creches is increasing while the number of operators is decreasing as larger, privately-owned, multi-facility operators emerge. This should in theory make the sector easier to regulate but does have a downside, according to some childcare experts, who argue that community and not-for-profit facilities tend to be more child-centric.It has also led to pressure on wages, with creche workers currently considering industrial action over what they consider an unsatisfactory pay offer from owners. Some large operators are also reported to be considering leaving the core funding system and raising prices – and some providers have already done so.With an estimated shortfall of 40,000 childcare places, the core funding model has obvious shortcomings. The Government has little appetite for getting directly involved in operating facilities, though it needs to consider doing so in areas where provision is poor. Supports to parents have increased, but the Coalition is struggling to meet the promises it made in its Programme for Government on provision levels and costs. This will be one of the real pressure points of Budget 2027.