The Early Childhood Care and Education (ECCE) Programme scheme is a universal scheme which provides 2 years of free preschool to children in the eligible age range of 2 years and 8 months to 5 years and 6 months. The Department funds private early learning and care service providers to provide the ECCE programme at a standard rate of €69 per week per child attending the ECCE programme.
The Deputy requested the estimated first year and full-year cost of increasing the ECCE capitation grant by 10%. To calculate the first year cost, officials in the Department used the ECCE allocation for August 2026 to December 2026 which is €102 million. Using this allocation the estimated first year cost of increasing ECCE capitation by 10% would be €10.2 million. Therefore, a 10% increase to the ECCE capitation would bring the total August 2026 to December 2026 allocation to an estimated €112.2 million.
In calculating the full year cost, officials in the Department used the total budget allocation for the ECCE scheme for 2026 which is a total of €259 million. Using this allocation the estimated full year cost of increasing ECCE capitation by 10% would be €25.9 million. Therefore, a 10% increase to the ECCE capitation would bring the total full year allocation to an estimated €284.9 million.
It is important to note that these estimates does not account for change in usage resulting from this proposed subsidy increase. Any changes to subsidies may create a change in behaviours, for example, an increase in the number of services offering the scheme or families availing of ECCE for the first time.