I 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.
This publication sets out Phase 1 actions, which will be carried out in 2026 using existing policy tools. Shaping the Future’s 2026 actions on affordability will include 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, to ensure that families with incomes below the relative income poverty line receive the maximum subsidies.
Phase 2 actions will be undertaken from 2027 to 2029. While we need to make progress quickly, the actions we take must be sustainable, underpinned by public consultation and research, and delivered in a way that supports families, the workforce and service providers. That is why a broad public consultation will be undertaken, in line with the Programme for Government commitment, to inform the identification of further actions. Phase 2 actions will be published later in 2026 and will include a roadmap to reduce parental fees to maximum to €200 per month over the lifetime of the Government.
There is a lot to be done, but I look forward to working with all stakeholders to move towards an early learning and care and school-age childcare system that is of high quality, affordable and accessible for all, supporting children, families, educators, and providers.