Dáil Éireann Debate, Thursday - 19 February 2026
138. Deputy Edward Timmins asked the Minister for Children, Disability and Equality if a schedule has been set to reach the planned €200 per month maximum childcare cost as set out in the programme for Government; and if she will make a statement on the matter. [13372/26]
Amharc ar fhreagraI 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 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 to an upper limit of €200 per month 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 early learning and care (ELC) and school-age childcare (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, to ensure that families with incomes below the relative income poverty line receive the maximum subsidies.
Phase 1 of the Action Plan includes:
• An increase to the lower (base) income threshold of the income-assessed subsidy from €26,000 to €34,000.
• 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 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 a maximum of €200 per month over the lifetime of the Government.
