I propose to take Questions Nos. 864 and 866 together.
The National Childcare Scheme (NCS) provides subsidies – both universal and targeted - to reduce the costs to parents for children to participate in early learning and childcare. Facilitating labour market participation is a key objective of the NCS, in addition to improving child outcomes. The Scheme is progressive in nature, ensuring the highest subsidies go to families that need it most. The targeted NCS subsidy supports labour market and education participation of parents by providing an enhanced hours subsidy of 45 hours per week for parents who are engaged in work, study or training. Parents not engaged in work, study or training are entitled to a standard hour subsidy at a maximum of 20 hours per week. This is on top of hours spent in pre-school or school.
The definition of work or study under the scheme is broad, covering all forms of work or study arrangements: full-time, part-time and week-on/week-off. Moreover, the minimum hours required to engage in work or study to qualify for up to 45 hours per week is very low – at just two hours per week. In this way, the NCS encourages parents to return to the labour force or education and deliver better outcomes for their children.
All families, regardless of income or work status, are entitled to a universal subsidy of €2.14 per hour for up to 45 hours of care per week. Higher levels of support are targeted at lower-income families through the income-assessed subsidy.
As set out in Shaping the Future: The Early Years Action Plan, further enhancements to the income-assessed subsidy will be introduced in September 2026. These include increasing the lower income threshold from €26,000 to €34,000 and the upper threshold from €60,000 to €68,000, improving affordability for up to 47,000 children from lower-income families.
An evaluation of the National Childcare Scheme (NCS) has recently commenced. This review will assess the performance of the Scheme to date and its operation within the wider early learning and childcare funding and policy environment.
The evaluation will examine whether the NCS, as part of the wider funding model, is making high-quality early learning and childcare more accessible and affordable, particularly for families in the lowest income groups and the most disadvantaged households. It will also identify any improvements that could be made to enhance accessibility and affordability and to ensure that the Scheme is working for as many families as possible. Eligibility for the scheme and the number of subsidised hours will be assessed as part of this evaluation.
The findings of the evaluation will inform potential enhancements to the National Childcare Scheme to continue to support families with the cost of early learning and childcare, in line with Shaping the Future the recently published Early Years Action Plan.
The recent publication of Shaping the Future, the Early Years Action Plan Phase 1 Report sets out the next steps for building an affordable, high-quality, accessible early learning and childcare system, informed by stakeholder consultation. 2026 actions on affordability will include further reduction in some of the highest fees paid by parents through Core Funding; and reduced 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.