An additional €64.1 million has been allocated to the National Childcare Scheme (NCS) for 2026. This brings the total investment in the Scheme to €593.9 million in 2026 – representing a 12% increase on the 2025 allocation. The increased allocation reflects anticipated growth in the uptake and usage of the Scheme by families.
It is not possible to provide a definitive estimate of future year annual costs associated with changes to the Income-Assessed thresholds and Multiple Child Discounts. This is because the costs associated with these changes will be demand-led and contingent on behavioural responses around the level of childcare usage. Any changes to the thresholds may influence family behaviour, for example – it may facilitate parents returning to work and/or an increase in labour force participation. There may also be an increased uptake of formal childcare by families who have not previously availed of such.
These considerations are similarly relevant in estimating the additional number of children who may qualify for Income-Assessed awards under the revised criteria. From September 2026, most families currently in receipt of an Income-Assessed subsidy are expected to benefit from an increased rate. The increased thresholds are also anticipated to support families to move from their existing Universal rate to an Income-Assessed subsidy where it may be of more benefit.