Dáil Éireann Debate, Tuesday - 21 April 2026
665. Deputy John Paul O'Shea asked the Minister for Children, Disability and Equality based on current numbers, the estimated full year cost of reducing the maximum fee cap for services participating in core funding from €295 to €200 per week; and if she will make a statement on the matter. [27919/26]
View answerThe Department is fully committed to promoting affordability for parents through Core Funding. This is driven by the Core Funding fee management system, which includes fee caps and a freeze on fees at September 2021 levels. Adherence to the fee management system is a key condition of receiving the significant funding available through the Scheme.
Any estimate for the full-year cost of a fee cap reduction from €295 to €200 would be contingent on the type of costs being assessed and service-specific operational factors. However, considerations of this nature are being factored into planning for future developments in the Core Funding fee management system.
Promoting affordability for parents is a key priority of the Department the investment of €1.48bn secured in the 2026 budget for early learning and care and school-age childcare will allow the Department to build on recent progress in the gradual reduction of fees for parents, while also supporting supply and the quality of provision.
The additional funding will see the allocation for Core Funding in the next programme year, which begins in September 2026, increase to over €480 million. That is an additional €87.6 million on the current full year allocation, or a 22% increase.
Within this, €20.6 million in brand new full-year funding was secured to support providers in adhering to Core Funding fee management conditions, including further reductions in the maximum fee caps in the fifth year of the Scheme. This will guarantee that Core Funding’s monetary protections will continue to be passed on to families while ensuring sustainability and stability for the sector.
This will enable Core Funding to continue to support fee-control measures and will also allow for growth in the sector. The allocation for Core Funding in 2026 will ensure fees remain at 2021 levels for a majority of providers. As well as this, there will be a new maximum fee cap set to reduce costs for families paying the highest fees across the country. Further details of the new, lower maximum fee caps will be announced in the coming months.
Shaping the Future: The Early Years Action Plan, Phase 1 report (published on the 17 of December 2025) sets out measures to achieve key Programme for Government commitments on the affordability, quality, and accessibility of early learning and care and school-age childcare. One of the central objectives of Shaping the Future are to reduce parental fees to a maximum of €200 per month over the lifetime of the Government.
The Action Plan adopts a phased approach that enables action to be taken in 2026 while allowing adequate time for a broad public consultation and analysis on longer-term actions. In line with the Programme for Government commitment, a broad public consultation process is currently underway. An online survey has been completed, with more than 11,000 responses. Phase 2 actions will be published later in 2026 and will be undertaken from 2027 through to the end of 2029. Phase 2 actions will include a roadmap to reduce parental fees to a maximum of €200 per month over the lifetime of the Government.
