Dáil Éireann Debate, Tuesday - 26 May 2026
1027. Deputy Sean Fleming asked the Minister for Children, Disability and Equality to outline the progress, the plan and the timescale for reducing costs for childcare for parents; and if she will make a statement on the matter. [39958/26]
View answerThe Phase 1 report of Shaping the Future: the Early Years Action Plan was published on 17th December 2025. The report sets out the next steps in the delivery of a number of Programme for Government commitments relating to Early Learning and Care (ELC) and School Age Childcare (SAC). A central objective of Shaping the Future is to reduce parental fees to an upper limit of €200 per month over the lifetime of the Government. Shaping the Future, the Early Years Action Plan Phase 1 Report, sets out the next steps towards this ambition. In September 2025, 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.
A central objective of Shaping the Future is to reduce parental fees over the lifetime of the Government. However, this objective cannot be achieved through the National Childcare Scheme alone. The fee-freeze and maximum fee-caps required for Core Funding have been key to the progress in recent years in making ELC and SAC services more affordable.
The Phase 1 report of Shaping the Future sets out actions which will be carried out in 2026 using existing policy tools. 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.
Specifically in relation to the National Childcare Scheme, Phase 1 of Shaping the Future commits to:
• An increase to the lower (base) income threshold of the income-assessed subsidy from €26,000 to €34,000, to ensure that families with incomes below the relative income poverty line receive the maximum subsidies.
• An increase to the upper income threshold (income limit) of the income-assessed subsidy from €60,000 to €68,000, to extend income-assessed subsidies to more families.
• An increase to the multiple child deduction (MCD) component of the income-assessed subsidy for families with two children under the age of 15 from €4,300 to €5,500, and for families with three or more children under the age of 15 from €8,600 to €11,000
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 process is currently underway. An online survey has been completed, with more than 11,000 responses. More than 50 local consultation events, organised with the City and County Childcare Committees, took place during April 2026.
Results of this consultation process, as well as additional analysis, will inform Phase 2 of the Action Plan. The Action Plan adopts a phased approach that enables action to be taken in 2026 while allowing adequate time for the broad public consultation and analysis on longer-term actions, which will be set out in a second report, to be published by the end of 2026.
