Childcare restrictions for TCNs could put pressure on families, childcare centres – Donha Muscat

The Government’s decision to restrict access to free childcare for third-country nationals (TCNs) could place financial pressure on working families and create challenges for childcare providers, according to Donha Muscat, Chief Executive Officer of St. Paul’s Institute and Principal of St. Paul’s Childcare.

Speaking to MaltaCEOs.mt, Ms Muscat raised concerns about the implications of the measure announced in Budget 2027, particularly for TCN parents who will no longer qualify for new access to the free childcare scheme.

"My main concern is the impact on working families and how this will, in turn, affect childcare centres. For TCN parents who will no longer qualify for new access to free childcare, private fees could place considerable pressure on their household budget. Some may face difficult decisions about whether they can afford to continue working," she said.

The measure was announced by Finance Minister Clyde Caruana in Budget 2027, and will restrict access to the Government's free childcare scheme for TCN families. Children already benefiting from the scheme will retain their entitlement, while new applicants affected by the restrictions will no longer qualify.

Ms Muscat explained that the implications could extend beyond parents, potentially affecting childcare operators and their employees.

"This could also affect our workforce, including childcare employees who need childcare for their own children. At the same time, fewer families may be able to book places with us."

She also highlighted the difficulties childcare providers could face when planning future operations, particularly in relation to enrolments and staffing.

"Although children already benefiting from the scheme will retain their entitlement, centres need to plan ahead for future enrolments, staffing and services. Uncertainty around upcoming intakes makes these decisions much harder, particularly where commitments have already been made."

Ms Muscat called for greater engagement with stakeholders to ensure that the changes take into account their wider economic and operational implications: "We need meaningful consultation and a fair, sustainable way forward that considers working families, childcare providers and the employers who depend on these parents."