Since the National Childcare Scheme (NCS) launched in 2019, the base reckonable family income to qualify for the maximum targeted subsidy has been €26,000. This means that applicants with a reckonable income at, or below, this amount qualify for the highest level of income-assessed subsidy.
Under the Government’s ‘Shaping the Future: Early Years Action Plan’, the base income threshold for the NCS will be increased from €26,000 to €34,000 from September 2026. This will mean that applicants with a base reckonable income of €34,000 or below will qualify for the maximum subsidy rate. This change will improve the affordability of childcare for up to 47,000 children from lower income families. Additionally, the upper income threshold will increase from €60,000 to €68,000.
Through increasing the NCS Income-Assessed thresholds, families whose reckonable income falls within the new thresholds will receive a higher subsidy, as they will move to a higher income-assessed rate, according to their individual circumstances. Increasing the Multiple Child Discount will further reduce the reckonable income for families with 2 or more children, allowing them to receive a higher subsidy, thereby reducing the cumulative burden of cost.
Most families currently receiving an income-assessed subsidy will see an increase in their rate, due to these changes. This investment will also support additional families to move from their existing universal rate to an income-assessed subsidy.