Dáil Éireann Debate, Thursday - 18 December 2025
43. Deputy Barry Ward asked the Minister for Children, Disability and Equality the position regarding developments towards reaching the commitment to reduce childcare costs to €200 per child, per month, in the context of a number of childcare providers pulling out of the core funding scheme; and if she will make a statement on the matter. [71466/25]
View answerI have always been clear in communicating that the €200 per month commitment is over the lifetime of this Government. While Shaping the Future, the Early Years Action Plan Phase 1 Report, sets out the next steps towards this long-term ambition, I have not waited until now to take action. In September this year, maximum fee caps were extended to all Partner Services in Core Funding. Budget 2026 also enables Core Funding to continue to support fee-control measures. It will ensure fees remain at 2021 levels for a majority of providers.
Phase 1 actions on affordability in Shaping the Future will deliver tangible steps towards the €200 commitment in 2026. Actions in 2026 will support a further reduction in some of the highest fees paid by parents by lowering the maximum fees that Core Funding Partner Services can charge. In addition, from autumn 2026 we will reduce fees for lower-income families through the National Childcare Scheme. This will ensure that families with incomes below the relative income poverty line receive the maximum subsidies.
While the first phase of Shaping the Future gets underway, the Department will begin preparations for Phase 2. Phase 2 actions will include a roadmap to reduce parental fees to a maximum of €200 per month over the lifetime of the Government.
I am aware that a small number of service providers have regrettably chosen to withdraw from the Core Funding scheme. However, uptake of Core Funding remains strong and the absolute numbers of providers participating in the scheme are at record levels.
The fourth year of Core Funding began on 1 September and as of 12 December there were 4,580 services signed up to Year 4 of Core Funding, a 5 per cent increase on this time last year. This is the highest number of Partner Services in Core Funding at any point since the scheme was launched in 2022 and the number continues to grow.
While the State cannot mandate providers to participate in the scheme, Core Funding has been designed with maximum participation of providers in mind, as reflected in the year-on-year growth of investment in the Scheme (rising from €259 million in year 1 of the scheme to over €390 million in year 4).
