The cost of organised childcare is set to go up sharply next year, with some families facing increases of several hundred euros, according to calculations by sector organisations.

Childcare organisations are forecasting their costs will rise between 2.3% to 2.9% in 2022 but the government will only pay towards the first €8.50 per hour – up just 0.5% on this year.

That means parents will have to pay a higher percentage towards the cost of their children’s care than they do at present.

According to RTL, a low income family with two children in daycare for three days a week face paying almost €350 more a year, if their childcare company puts up fees from €8.40 an hour to €8.60 – which is above the government’s maximum.

Higher wages for staff are the main reason for the increase in costs. While childcare groups say they will try to absorb as much of the increase as possible, parents are likely to face higher fees.

Childcare organisations are urging the government to set a more realistic increase of 3.5%.