Dáil Éireann Debate, Tuesday - 21 April 2026
666. Deputy John Paul O'Shea asked the Minister for Children, Disability and Equality based on current numbers, the estimated full year cost of increasing the universal hourly subsidy available under the national childcare scheme by €1 to €3.14 per hour for a maximum of 45 hours; and if she will make a statement on the matter. [27920/26]
Amharc ar fhreagra667. Deputy John Paul O'Shea asked the Minister for Children, Disability and Equality based on current numbers, the estimated full year cost of increasing the universal hourly subsidy available under the National Childcare Scheme by €2 to €4.14 per hour for a maximum of 45 hours; and if she will make a statement on the matter. [27921/26]
Amharc ar fhreagraI propose to take Questions Nos. 666 and 667 together.
The Deputy has requested the estimated full year cost of increasing the universal hourly subsidy available under the National Childcare Scheme by €1 to €3.14 per hour, and by €2 to €4.14 per hour, for a maximum of 45 hours.
Currently, all families with children attending a registered childcare provider or childminder can avail of €2.14 per child per hour towards their costs under the universal subsidy for a maximum of 45 hours per week. This subsidy can contribute up to €96.30 per week for families availing of 45 hours of childcare per week. The most recent increase of the universal subsidy was implemented in September 2024, when the rate increased 53% from €1.40 to €2.14.
The ESRI SWITCH model has been used to estimate the impact of increasing the universal subsidy by €1 and applied it to the Department's baseline NCS cost for 2026. The annual cost of the proposed change was estimated at €210.24 million.
The same process using the ESRI SWITCH model has also been used to estimate the impact of increasing the universal subsidy by €2 and applied it to the Department's baseline NCS cost for 2026. The cost of the proposed change was estimated at €436.88 million.
It is important to note that this costing is made on the basis of a static system. This means that the model assumes that the current uptake of eligible childcare does not increase or decrease. In addition to annual growth in NCS demand over time, the changes to subsidies presented above would create changes in the behaviours of families. For example, it may influence parents’ decisions to return to or increase their labour force participation, meaning some families may use formal Early Learning and Care for the first time.
