Dáil Éireann Debate, Wednesday - 25 March 2026
269. Deputy Jen Cummins asked the Minister for Children, Disability and Equality the reason the National Childcare Service is not structured so that funding follows the child rather than being contingent on provider participation; and if she will make a statement on the matter. [22532/26]
Amharc ar fhreagraThe National Childcare Scheme (NCS) provides both universal and income-assessed subsidies to help parents to meet the cost of early learning and childcare. All families can receive a universal subsidy, but the highest subsides are provided to families with the lowest levels of income through the income-assessed subsidy.
The National Childcare Scheme is a national scheme, and the funding follows the child. Families who apply for the NCS in respect of their children will receive a CHICK code in relation to their child which they can then bring to the provider of their choice. Once the provider registers the CHICK and the parent confirms the details, the funding will go directly to the provider. Once a parent has a CHICK, it can be used in multiple providers, if appropriate. A parent could choose to use one provider in term, and another out of term, or different providers on specific days of the week, once they do not exceed the maximum 45 hours.
The NCS is designed to be flexible and acknowledges that childcare needs differ widely across different families. For this reason, NCS subsidies are awarded as an hourly rate, along with a maximum number of weekly hours that the subsidy will be paid for.
The actual subsidy payment is based on the hours agreed between the parent and the provider and claimed on the NCS system.
“Demand side measures” (i.e. funding directly to parents) and “supply side measures” (i.e. funding directly to providers to assist in the meeting the cost of early learning and childcare provision and/or to reduce parents fees) were explored in the context of the development of the NCS.
The 2016 policy paper, which informed the subsequent development of the NCS, concluded that supply-side measures offer the State greater “steering capacity in terms of ensuring equity of access and driving quality in early learning and childcare services. This is because well-designed supply-side measures offer the State several policy levers (e.g. subsidy levels linked to quality, conditions for provider participation, regulation of co-payments etc.) through which policy objectives can be pursued.
The emphasis on supply-side funding allows the Department to leverage quality of the sector and make progress towards a more publicly managed service, where policy levers can be used to support quality, affordability, availability, access, and sustainability.
In line with the requirements of the Child Care Act 1991 (Early Year Services) Regulations 2016, the Child Care Act 1991 (Early Year Services) (Registration of School Age Services) Regulations 2018 and the Child Care Act 1991 (Early Years Services) (Childminding Services) Regulations 2024, those wishing to operate an early years service that offers the NCS (whether a preschool, school age or childminding service) are required to register with Tusla in line with the relevant regulations.
The NCS has undergone a number of enhancements in recent Budgets with the minimum NCS subsidy steadily rising from €0.50 in 2022 to €2.14 in September 2024 alongside extensions to eligibility. Additionally, since September 2024, the NCS has been open to Tusla-registered childminders who wish to participate in the scheme. Families availing of childminders who are participating in the NCS can claim a subsidy towards their costs. Further enhancements to the income-assessed subsidy are being introduced from September 2026, raising the base threshold from €26,000 to €34,000 and the maximum threshold from €60,000 to €68,000, with additional increases to the multiple child discounts.
