Dáil Éireann Debate, Tuesday - 7 July 2026
656. Deputy Richard Boyd Barrett asked the Minister for Children, Disability and Equality the estimated full-year cost of increasing childcare subsidies to 100% of fees paid by parents availing of childcare subsidies; and if she will make a statement on the matter. [51335/26]
Amharc ar fhreagraThe Deputy has requested the cost of increasing the NCS subsidy so that 100% of fees are covered by the NCS.
It is not possible to provide an accurate estimation at this time. To model a change such as this accurately would require individualised fee data on out-of-pocket costs for parents. Each year Pobal compiles data from Early Learning and Care (ELC) and School Age Childcare (SAC) providers as part of the Early Years Sector Profile. This provides the Department with data on the average weekly fee per child before subsidies. According to the most recently published fee data for the 2024/25 programme year, the median weekly fee is €200 for full day early learning and childcare.
However, this average fee figure does not accurately capture the variation across the ELC and SAC sector. These fees vary significantly based on the location of the service, usage patterns (i.e. sessional, part-time, full time) and age of the child.
Additionally, sufficient time would be required to model such a change capturing the behavioural shift that would occur as a result of this change including increases in labour market participation, changes in usage of childcare and use of formal childcare for the first time.
The Programme for Government has committed to establishing a cap on costs at €200 per child per month to further build on significant progress in affordability that has already been made through a number of existing Schemes.
The fee-freeze and maximum fee-caps required for Core Funding have been key to the progress in recent years in making ELC and SAC services more affordable. 2026 actions on affordability will include further reduction in some of the highest fees paid by parents by lowering the maximum fees that Core Funding Partner Services can charge. In addition, from autumn 2026 we will reduce out of pocket costs for lower-income families through the National Childcare Scheme (NCS).
Further reduction in maximum fee caps for the Core Funding programme year 2026/2027, beginning September 2026. These latest maximum fee caps, which apply to all Core Funding Partner Services, will place a limit on the maximum fees that can be charged. Under the new maximum fee caps, the highest possible upfront cost for a typical full day place of 45 hours per week will drop from around €198 per week to €183.70 per week, with universal subsidies under the National Childcare Scheme. Higher subsidies are available for many parents, depending on their level of income and the age and number of children in their family.
The 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.
Results of this consultation, and additional analysis, will inform Phase 2. Phase 2 (which will be published later this year) will set out actions to be undertaken from 2027 through to the end of 2029.
